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All Talent Development Centre posts for Canadian IT Contractors relating to the IT indsutry.

IT Industry News for September

Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on The Eagle Blog on October 10th, 2017

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for September 2017. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of September in previous years …

Infosys logoFive years ago in September 2012 Infosys increased its management consultancy capability with the $330 million purchase of Lodestone.  Lenovo bought Stoneware, a software company focused on the cloud, and Ericsson bought ConceptWave.  A couple of interesting investment moves saw Microsoft invest in Klout and Silicon Valley VC Chameth Palihapitiya invest in Xtreme Labs.

Microsoft logoFour years ago in September 2013 Blackberry announced a quarterly loss of almost $1 million and laid off 4,500 people. Microsoft bought Nokia’s devices and services unit for more than $7 billion. Ebay paid $800 million for payment platform Braintree; Synnex bought IBM’s customer care division for $505 million; Rogers added to its data centre capacity with the $161 million purchase of Pivot Data Centres; Extreme Networks bought Entersys Networks for $180 million; and Manitoba Telephone Systems bought Epic Information Systems.

September 2014 saw some big deals announced, including Microsoft’s $2.5 billion purchase of gaming company Minecraft, Lenovo’s $2.1 billion purchase of IBM’s x86 server business and Cognizant’s $2.7 billion purchase of healthcare company, Trizetto Corp.  Hootsuite had an injection of cash and bought two companies, social telephony company Zeetl and social media marketing platform Brightkit.  Google also made two acquisitions, biotech company Lift Labs and desktop polling company Polar. There were plenty more deals announced, including Yahoo’s $8 million purchase of cloud based document hosting company Bookpad; Cisco’s purchase of private cloud company Metacloud; SAP’s purchase of expense software company Concur; Blackberry’s purchase of virtual identity software startup Movirtu and Red Hat’s purchase of mobile app company FeedHenry.

ACCENTURE LOGOTwo years ago in September 2015 there was a fair bit of M&A activity but no blockbuster deals.  Microsoft was very active, closing three deals, Adxstudio which provides web based solutions for Dynamics CRM; app developer Double Labs; and cloud security firm Adallom.  Accenture picked up the cloud services company Cloud Sherpas; IBM added cloud software startup StrongLoop; Netsuite paid $200 million for cloud based marketing company Bronto Software; and Blackberry paid $425 million for competitor Good Technology.  Hardware company Konica Minolta bought IT Weapons; Qualcomm bought medical device and data management company Capsule Technologie; Networking and storage company Barracuda Networks bought online backup and disaster recovery company Intronis; and Compugen bought some of the assets of another Canadian company Metafore.

HP logoLast year in September 2016 Tech Data paid $2.6 Billion for the technology solutions group of Avnet, and HP made the biggest printer acquisition to date, paying $1.05 Billion for Samsung’s printer business.  Other deals saw Google pay $625 million for Apogee, and restaurant company Subway bought online order taking software company Avanti Commerce.  One investment that caught my eye, in the staffing world saw Accenture invest in crowdtesting company Applause.

Which brings us back to the present …

September 2017 saw Google splash out $1.1 Billion to acquire HTC’s pixel team, strengthening its own smartphone capabilities.  In an interesting move IKEA bought gig economy company TaskRabbit, so perhaps you won’t need to put that furniture together yourself in the future!  HPE bought Cloud Technology Partners, presumably to strengthen its capabilities in that area and possibly access new clients.  Finally Edmonton company F12.net bought Vancouver’s ONDeck Systems as it pursues its goal to be a National IT Service Provider.

IBM logoHPE was also in the news, announcing yet another round of layoffs, this time 5,000 people before the year ends.  Equifax hit the news, retroactively announcing a huge cyber breach affecting 143 million customers which has since cost the CEO, CIO and CISO their jobs.  CareerBuilder also announced 120 layoffs, as part of consolidation following multiple acquisitions and now a new owner.  IBM continues to take heat for the Phoenix Project, which is the Canadian Federal Governments pay system and has been a huge mess … and in all honesty there is plenty of blame to go around for this fiasco.

canadian flagThe Canadian economy has been performing well, with 22,000 jobs added in August and 374,000 jobs created in the last year.  However storm clouds are gathering with huge new minimum wage hikes coming, non-business friendly changes to labour laws, carbon taxes and new Federal Tax legislation that will impact professionals and business owners.  Some observers suggest that we might face a Government induced recession in 2018.

Elsewhere the US economy continues to perform well, and the Trump administration is proposing tax cuts for business, which should create even more opportunity and possibly threaten Canada’s economy as Canadian businesses face tax hikes.  Worldwide, generally economies and job prospects are improving.  Even Greece improved its unemployment rate 2% over the last year, from 23% to 21%.

There were a few indicators of how our changing world will impact jobs with one report suggesting 4 million jobs in the UK will be replaced by robots in the next ten years.  Another 700,000 low skilled IT jobs will be lost to automation in the next five years.

That’s what caught my eye over the last month, the full edition will be available soon on the Eagle website.  Hope this was useful and I’ll be back with the October 2017 tech news in just about a month’s time.

IT Challenges and Priorities of North American Companies

IT Challenges and Priorities of North American CompaniesHow up-to-date are you on the struggles and strategies of your industry? Understanding what companies are facing can help you plan which skills you will enhance over coming months, as well as help you develop a better sales pitch for your contracting business. There are plenty of sources and studies available to help you understand potential clients’ agendas, and new research is being published regularly. Here are a couple recent ones…

A CDW Canada survey of Canadian organizations learned that their top security concerns are intrusion prevention (39%) and Ransomware protection (35%). Even with these concerns, most are still exploring or implementing cloud deployments; in fact, half of them are planning hybrid solutions in 2017. While most organizations are adopting cloud strategies in one way or another, only 16% would consider themselves a “cloud-first” organization.

The survey revealed some additional IT-related priorities for Canadian organizations. For example, when asked about emerging technologies that will have the most impact on their business, the top responses were analytics and big data, as well as the Internet of Things (IoT). In addition, 10% plan to replace legacy tools and applications with new technologies and 31% plan to upgrade or update their current tools and applications in their unified communications strategies.

South of the border, mid-market US-based companies are having a challenging time attracting and retaining IT talent — that’s according to a recent CFO Research survey. The findings detail how 49% of finance executives state that their challenges to keep tech professionals in the company have an adverse effect on them. Once they do secure IT employees, the struggles with those people continue with technical competency, strategic planning and vision, industry knowledge, project management, and customer service skills.

Naturally, the US companies surveyed are dealing with their issue by turning to external services. Rather than training or continuing their search, CFO Research learned that most are bridging the gap by moving to cloud services and eliminating a need to source, manage and maintain computer hardware, as well as turning to managed IT services. Regardless of their concerns about costs, the provider’s ability to understand the company, service quality or security breaches, the overall feeling among the executives surveyed is that this solution has been successful.

Have you come across any recent studies about your industry that help you prioritize your training? If so, please share the links below so other readers can benefit.

IT Industry News for August 2017

Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on The Eagle Blog on September 10th, 2017
IT Industry News - August 2017This is my 30,000 foot look at events in the Tech industry for August 2017. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of August in previous years …

Five years ago in August 2012 M&A was slow with IBM busiest, paying $1.3 billion for HR solutions and services company Kenexa, plus they bought flash memory developer, Texas Memory Systems.  The other “big name” deal was Google’s purchase of social media marketing company Wildfire Interactive, reputedly for $250 million.

In August 2013 IBM paid $1 billion for Trusteer, a cybersecurity company specialized in the financial services sector;  Qualcomm sold its fleet management software unit for $800 million to private equity firm Vista Equity Partners; and the other big dollar buy was AOL paying $405 million for online video company Adap.tv.  Facebook bought speech recognition company Mobile Technology; Software AG bought analytics firm Jackbe; Opentext paid $33 million for cloud based software company Cordys; and SAP bought ecommerce company Hybris.

Intel logoAugust 2014 saw no blockbuster deals, however a number of big name companies were out with their cheque books.  Intel paid $650 million for the LSI Axxia networking chip business; Vmware bought application delivery provider CloudVolumes; IBM bought Lighthouse Security Group to bolster its cloud based identity and access management capabilities; Google bought two startups, Emu to boost its messaging capabilities and Directr for its video advertising business; Facebook bought a security startup Privatecore, and the last BIG name saw Yahoo buying app company Zofari.

IBM logoTwo years ago in August 2015 there were two billion dollar deals.  Symantec sold Veritas (which it paid $13.5 Billion dollars for 10 years ago) to a group of investors for $8 Billion.  IBM also paid ”big bucks”, shelling out $1 billion for Merge Healthcare.  Smaller deals saw Calgary based Above Security bought by Hitachi; Transcomos bought 30% of Vietnamese daily deals site Hotdeal; Freshdesk bought live-chat company 1Click; and PLDT bought ecommerce startup Paywhere.

The apple logo and apple with a bite out of itLast year August 2016 saw a fair bit of M&A activity although there were no billion dollar deals.   The largest deal saw global staffing company Randstad buy one of the larger job boards, Monster for $429 million.  A similar sized deal saw Intel shell out $408 million for artificial intelligence company Nervana.  Hewlett Packard Enterprises paid $275 million for SGI (what was left of Silicon Graphics); Apple paid $200 million for artificial intelligence company, (there is a pattern here), Turi; Salesforce bought business analytics company Beyondcore for $100 million; and ScanSource paid $83.6 million for telecom cloud services company Intelisys Communications.  Other acquisitions saw Microsoft snap up two companies, artificial intelligence scheduling software company Genee in addition to their XBox division buying interactive livestreaming company Beam.  Nutanix bought two companies to bolster its Enterprise Cloud Platform, Calm.io, a DevOps automation company and PernixData, which offers data analytics and acceleration capabilities.   Other smaller deals saw Palantir, an analytics and consulting company buy data visualization startup, Silk; and Magnitude software bought Vancouver based, data access and analytics company Simba.

Which brings us back to the present …

Cisco logoAugust 2017, as has been the case for most of this year was relatively slow on the M&A front.  Symantec is selling its website security business to DigiCert for $1 billion, plus a stake in the larger entity.  Cisco paid $320 million for hyperconvergence company Springpath, CGI bought consulting company in Pittsburgh, Summa Technologies and Accenture bought a Toronto consulting company VERAX.  While not a pure tech play the biotech world saw Aclaris pay $100million for Confluence.

Infosys logoThere was some drama at Samsung, as Jay Y Lee was jailed for 5 years for bribery.  There was also some internal drama at Infosys that saw their CEO Vishal Sikka resign.

The Canadian economic indicators were mixed, but new proposed tax reforms, NAFTA negotiations, new labour laws in Ontario and an impending carbon tax will hurt clearly have a negative impact on the Canadian economy.  Meanwhile, the US economy seems to keep adding jobs and have fairly positive indicators.

It is also interesting to look at the various job situations around the world noting very low unemployment in places like Japan, Germany and Hong Kong with very high unemployment in France, Greece and Spain.  The impact of Brexit on the London job market also seems to be a growing factor.

Eagle logoThat’s what caught my eye over the last month, the full edition will be available soon on the Eagle website.  Hope this was useful and I’ll be back with the September 2017 industry news in just about a month’s time.

Until then, Walk Fast and Smile!

IT Industry News for July 2017

Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on The Eagle Blog on August 16th, 2017

Tech News HeaderThis is my 30,000 foot look at events in the Tech industry for July 2017. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of July in previous years 

Five years ago, in July 2012, Marissa Mayer became the new CEO at Yahoo and Dell bought Quest Software for $2.4 billion; Apple picked up Authentec for $356 million and Socialcam acquired Autodesk for $60 million.  Oracle was on a roll, buying (i) the assets of Skire (capital assets and facilities management software), (ii) Involver (a social marketing tools company) and (iii) Xsigo Systems (Network Virtualisation).  VMware was also busy, picking up Dynamic Ops (virtualisation software) and Nicira (a start-up in the networking software space).  One interesting deal saw Digg bought for $500,000 by Betaworks, when Digg had been valued at $200 million just four years ago.

Cisco logoJuly 2013 was quiet for M&A activity, but there were some interesting deals, with the big deal involving perennial acquirer Cisco shelling out $2.7 billion for security vendor Sourcefire. There were some other big names out shopping with EMC buying identity management company Aveska, Intel making an acquisition in Israel (a trend) of Omek a company specialised in the perceptual computing arena.  Apple bought Locationary, a Toronto company that is expected to be involved in improving Apple’s maps for iOS (remember when Apple dropped Google Maps!)  Finally, Ottawa’s Shopify bought Toronto-based design agency Jet Cooper.

Twitter logoJuly 2014 had a lot of M&A activity but no real blockbuster deals.  BlackBerry bought encryption company Secusmart GmbH; Oracle bought cloud services company TOA Technologies; Twitter bought a startup Madbits, a company that focuses on the media space; Yahoo also bought a startup Flurry in the mobile apps space; Teradata bought a couple of smaller “big data” companies, Hadapt and Revelytix; Apple bought a couple of smaller “books & podcast” companies Booklamp and Concept.io; Qualcomm bought education company EmpoweredU; and finally Nokia continue to rebuild after selling its devices and handsets business to Microsoft, this time buying Panasonic’s 3G and LTE base station operations division.

IBM logoJuly 2015 saw no billion-dollar deals, but there was some activity with some big names out shopping.  Microsoft made two acquisitions, paying $320 million for cloud security company Adallom and also picked up customer servicing software company FieldOne Systems. IBM picked up database as a service company Compose; Cisco paid $139 million for sales automation company MaintenanceNet; HP is buying a cloud development platform Stackato; Blackberry bought AtHoc which is a crisis communication tool; and DropBox bought messaging company Clementine.  Other acquisitions saw Cisco as a seller, with Technicolor paying $600 million for Cisco’s set top box division; Level 3 bought security firm Black Lotus; Amadeus bought travel software company Navitaire (a subsidiary of Accenture) for $830 million; eBay sold its enterprise unit for $925 million, having paid $2.4 billion for it four years ago.  In the continued blurring of the lines between technology companies and other industries, Capital One bank acquired design, development and marketing firm Monsoon.

Oracle logo a large software company originally noted for its databaseJuly 2016 saw some large deals, with Verizon making two multi-billion-dollar acquisitions.  The big name was Yahoo who they bought for $4.83 billion, but they also paid $2.4 billion for Fleetmatics who provide fleet and mobile workforce management services.  Oracle were also out spending big dollars, paying $9.3 billion for cloud based ERP company, Netsuite. Now if those deals were not big enough, Softbank (like Verizon they have a large telco presence – formerly Vodafone) paid a whopping $32.2 billion for chip designer ARM Holdings. Also joining the July billion dollar club was security vendor Avast, who bought AVG for $1.3 billion. Other deals this month saw Salesforce pay $582 million for cloud based startup Quip; Google bought video company Anvato; Terradata bought training company Big Data Partnership; and Opentext bought analytics company Recommind.

Which brings us back to the present …

Mitel LogoIn July 2017, Cincinnati Bell Inc. is buying Hawaiian Telcom Holdco Inc. for $650 million and OnX for $201 million. Mitel announced its acquisition of ShoreTel for $430 million as well as Toshiba’s unified communications business. In Toronto, digital signage solution provider, Dot2Dot, acquired Pixel Point Digital. PNI Canada Acuireco Corp. has purchased Sandvine Corp. for $562 million and plans to merge Sandvine with Procera Networks.

Reports indicate Microsoft plans to cut up to 3,000 jobs while streaming platform, SoundCloud has laid of 40% of its employees, and data storage provider, Seagate, plans more staff cuts due to weak financial performance.

According to threat intelligence provider, Risk Based Security, the number of publicly-reported data breaches in Canada this year is up to 59. In a study conducted by Forrester Data it is projected there will be 5.5 billion smartphone users around the world by 2020. In other news, there has been a recent increase in investments in European startups according to Invest Europe.

That’s what caught my eye over the last month, the full edition will be available soon on the Eagle website. Hope this was useful and I’ll be back with the August 2017 industry news in just about a month’s time, until then … walk fast and smile!

IT Industry News for June 2017

Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

Tech News HeaderThis is my 30,000-foot look at events in the ICT industry for June 2017. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of June in previous years

Five years ago, in June 2012, Microsoft’s $1.2 billion purchase of Yammer was the big deal of the month. Salesforce paid $689 million for Buddy Media; Google reputedly paid $100 million for Meebo; Facebook bought facial recognition company Face.com; and Oracle bought “social intelligence” company Collective Intellect. Another “buy” of interest to us at Eagle was the reputedly 7-figure purchase of Bullhorn by Vista Equity Partners (Bullhorn is Eagle’s front office software).

In June 2013, Salesforce.com purchased marketing technology company ExactTarget for $2.5 billion, which was the big buy of the month. Other acquisitions included Irish mobile company Three’s purchase O2 Ireland for $780 million; SanDisk paid $307 million for SMART Storage Systems; Cisco bought Composite Software for $180 million; IBM bought cloud company SoftLayer Technologies; and Buytopia.ca was on a spree with six acquisitions in that year.

June 2014 included some significant deals announced with Oracle paying $5 billion for Micros Systems; Sandisk paid $1.1 billion for solid state storage company Fusion-io. Google continued its push into home automation, witnessed by its subsidiary Nest paying $550 million for cloud-based home monitoring service Dropcam. Google itself paid $500 million for Skybox Imaging, a satellite maker to enhance the Google Maps capability. Twitter paid $100 million for mobile marketing platform Tap Commerce and Red Hat paid $95 million for eNovance.

In June 2015, Intel paid $16.7 billion for semiconductor company Altera Corp. Cisco paid $635 million for security firm OpenDNS in addition to picking up OpenStack company, PistonCloud Computing. Microsoft bought 6Wunderkinder, maker of task management app Wunderlist; Ricoh Canada bought Graycon Group, a professional services firm headquartered in Calgary; and finally, IBM bought OpenStack company Blue Box Group.

June 2016 was certainly an interesting month, with the Brexit vote upsetting the markets and causing uncertainty that will likely continue for some time yet; and there was plenty of M&A activity. The big deal was undoubtedly the Microsoft purchase of LinkedIn for a whopping $2.6 billion. There were other billion dollar deals that month too, Salesforce paid $2.8 billion for e-commerce platform maker Demandware and Amazon announced an extra $3 billion investment in its India operations. Other significant deals included Daetwyler Holdings AG paying more than $877 million for Raspberry Pi maker Premier Farnell Plc; Red Hat paid $568 million for API management software company 3Scale; and OpenText paid $315 million for HP’s Customer Communication Management products. Other noteworthy deals included an investment group’s purchase of Dell’s software arm; Microsoft bought natural language start up Wand Labs; and Samsung bought cloud computing company Joyent. Also, Google Capital announced its first investment in a public company, investing $46 million in Care.com, an online personal services marketplace platform.

Which brings us back to the present

June 2017

The largest deal of the month was Amazon’s purchase of Whole Foods for $13.7 billion or $42 a share. Westcon-Comstar’s American business is being bought by Synnex for approximately $800 million. US fintech provider, Fiserv purchased British financial services technology firm, Monitise for $88.7 million. Microsoft has purchased Israli cloud startup, Cloudyn, for a price between $50 million and $70 million. Rackspace has acquired TriCore in an effort to increase Rackspace’s business from customers who want help running their critical applications. Ebix Inc. has entered into a joint venture with Essel Group. while acquiring a majority stake in ItzCash for $120 million.

Travis Kalanick, founder and CEO of Uber, resigned due to investor pressure as a result of various scandals and setbacks throughout the organization. Google is being fined $3.575 by the European Commission for breaking antitrust rules.

That’s what caught my eye over the last month, the full edition will be available soon on the Eagle website. Hope this was useful and I’ll be back with the July 2017 industry news in just about a month’s time.

Walk Fast and Smile.

BC Technology Jobs Aren’t Only in Vancouver

Cameron McCallum By Cameron McCallum,
Regional Vice President at Eagle

Vancouver Victoria, Canada’s Newest Tech Hub!

Victoria, Canada’s Newest Tech Hub!Who knew? Ask anybody about Silicon Valley North and they will very likely mention Vancouver and the well-established and recently emerging tech sector that is driving a great deal of the city’s business environment. And they wouldn’t be wrong. But Victoria — “home of the newly wed and nearly dead” — is not just managing to sneak into the conversation, they are earning bragging rights of their own with nearly 900 tech companies, 20,000 workers and close to 4 billion generated in economic impact. While they won’t challenge Vancouver when it comes to sheer size and muscle power, Victoria is punching well above its weight.

On a recent trip to the provincial capital, I had the opportunity to speak to a number of clients who talked about the importance of the industry and how it has helped to revitalize the city, including the reestablishment of the downtown core area and the development of tech nodes such as the Vancouver Island Technology Park which shares space with Camosun College and Fort Techtoria. Fort Techtoria is the brainchild of VIATEC (Victoria Innovation, Advanced Technology and Entrepreneurship Council whose stated mission is “to serve as the one-stop hub that connects people, knowledge and resources to grow and promote the Greater Victoria technology sector”. A visit to the webpage gives the following quote from Dan Gunn, Executive Director of VIATEC.

Fort Tectoria Logo“We built Fort Tectoria to support entrepreneurs, creators and innovators throughout Greater Victoria. Much more than just well-appointed offices housing 35 early-stage tech companies on the upper floors, our main floor was designed to provide a gathering place for hackers, makers, movers and shakers to host meetups, workshops, networking sessions and events. We look forward to hearing what you have in mind.”

Why Victoria? A few common themes came to light. First, Victoria isn’t Vancouver. The cost of doing business reflects life in a smaller community. Space is certainly cheaper and workers who can’t afford or are otherwise allergic to the price of real estate in Vancouver, find Victoria to be a bit easier on the paycheck. Accordingly, demand for new office space from within the tech sector has now outpaced government in the downtown core, and interestingly, in a city as old as Victoria, this demand has specifically targeted older character buildings giving new purpose and life to the city’s historical assets. The sense of support in the community was also mentioned. The idea that VIATECH exists to help get industry together to solve problems and share ideas is a powerful magnet for startups and tech enterprises. And what about attracting applicants for work? It is a challenge but the same sense of community, decent weather by Canadian standards and a conglomeration of tech business means the word is getting out and the same workers who may have once targeted Vancouver are now starting to take notice of Victoria.

Are you interested in working on the island? If so, Eagle is always looking for great candidates for a variety of roles with great clients in Victoria.

IT Industry News for April 2017

Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

A Little History of April in previous years

Five years ago, in April 2012 Facebook made a $1 billion bid for Instagram, Facebook also bought a piece of the patent action from Microsoft after Microsoft had paid AOL more than $1 billion for the patents. DELL made three acquisitions this month, Wyse technology, Clerity Solutions and Make Technologies. IBM picked up Toronto based BI company Varicent Software; Intel paid $140 million for some assets from Cray; Citrix picked up Podio; and Twitter bought a startup to acquire its team of developers.

Three years ago, in April 2013 Rogers paid $200 million for Primus’s Blackiron subsidiary, including datacenter capability; Toronto based Softchoice also chose to go private in a $412 million private equity deal; Shaw paid $225 million for an Enmax fibre network subsidiary in Calgary; Best Buy sold its stake in Carphone Warehouse for $775 million (having paid $2.1 billion in 2008). Google paid $30 million for social company Wavii. Other big names on the acquisition trail in April 2013 included Intel (Mashery), IBM (Urbancode); Computer Associates (Nolio). Finally, Facebook had a couple of small acquisitions Osmeta and Parse.

April 2014 saw Microsoft officially entered the handset business with the completion of the $7.5 billion purchase of Nokia’s devices business. Zebra Technologies paid $3.5 billion for Motorola’s unit that makes mobile devices for business which is a move in the ever-expanding Internet of Things space. Apple paid $479 million purchase of the LCD chip development unit of Renesas Electronics. IBM snapped up marketing automation software company Silverpop Systems and open source software company Red Hat paid $175 million for storage company Inktank.

In April 2015, there was plenty of action. Nokia was the biggest story, paying $16.5 billion for telecom company Alcatel-Lucent, but there was also a $4 billion deal that saw Capgemini buy services firm IGATE and LinkedIn made its largest acquisition ever, paying $1.5 billion for training portal Lynda.com. LinkedIn also bought a predictive insights startup company, Refresh. Netsuite paid $200 million for ERP and commerce software company Bronto Software and Blackberry reputedly shelled out $150 million for file sharing security company Watchdox. Salesforce was also out shopping, picking up mobile two-factor authentication startup, Toopher. In another deal involving billions, Informatica decided to follow in DELL’s footsteps and go private for a $5.3 billion price tag.

Last year, in April 2016 there were some big deals, the biggest was Bell’s $3.8 billion bid for Manitoba Telephone System. Other large deal saw a Chinese conglomerate bid $3.6 billion for Lexmark; and Mitel shell out $2 billion for Polycom. Oracle paid $663 million for cloud based construction software company Textura. Nokia, who were also in the news announcing layoffs, continued to evolve their business model, this time into the wearable tech arena with the $192 million purchase of Withings. Other deals saw Autodesk acquire 3D animation software company Solid Angle; and Dimension Data bought Toronto based cloud services company Ceryx.

Which brings us back to the present …

April 2017

It has been reported that Microsoft plans to purchase Israeli cloud-monitoring and analytics startup, Cloudyn. Flipkart, one of India’s larger ecommerce companies, has acquired the Indian division of eBay (eBay.in) as part of eBay’s $500 million investment in Flipkart. VMware‘s vCloud Air unit will be acquired by OVH, a French hosting and cloud company. Global professional services provider, Accenture, purchased the UK-based automation services provider, Genfour. Toronto-based startup, Turnstyle Analytics, has been acquired by Yelp for $20 million. California-based Coupa Software purchased Swedish software company, Trade Extensions for $45 million. Montreal-based financial technology provider, Alithya acquired big data solution provider, Systemware Innovation Corporation.

In other news, the demand for PCs continues to decline reaching a low that has not been experienced since 2007. In Q1 of 2017, PC shipments fell by 2.4%, which signifies the 10th quarter of decline.

The ride-hailing company, Lyft, has raised $600 million in additional investments bringing the company’s valuation up to $7.5 billion.

BlackBerry has won a binding arbitration case against Qualcomm for $815 million.

That’s it for my look at what was happening in the technology space over the last month, compared to the same month in previous years. I’ll be back at the beginning of June, until then – walk fast and smile!

IT Industry News for March 2017

Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on The Eagle Blog on April 6th, 2017

IT Industry News - March 2017This is my 30,000 foot look at tech events for March 2017. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of March in previous years …

Hootsuite logoIn March 2012, there was some activity with a couple of (then) young companies receiving significant capital — Appirio ($60 million) and Hootsuite ($20 million). Cisco made a couple of acquisitions, paying a whopping $5 billion for video software and content company NDS Group in addition to a smaller network management buy, ClearAccess. NEC paid $450 million for the information management business of Convergys and Avaya paid $230 million for an Israeli videoconferencing and telepresence company Radvision. Other companies on the acquisition trail were DELL, EMC, SafeNet, Avnet and The Utility Oracle logo a large software company originally noted for its databaseCompany. Four years ago, March 2013 saw some of the “usual suspects” making acquisitions, but there were no billion dollar deals announced. Oracle continued its move into the telco space with the purchase of Tekelec; Google bought the small Toronto University-based company DNNresearch in the machine learning vertical; Microsoft sold Atlas Advertiser Suite to Facebook; and Yahoo bought Summly. In March 2014, Facebook made a somewhat surprising $2 billion acquisition of virtual reality company Oculus VR. Intel also expanded its horizons with the $150 million acquisition of smart watch maker, Basis Science. SAP added to its purchasing software suite with the acquisition of Fieldglass and TELUS made a couple of buys, Enode, a management consulting company out of Quebec HP logoand Med Access, an addition in British Columbia, to their healthcare division. March 2015 saw some significant M&A activity with HP paying $3 billion for Aruba Networks; Lexmark paying $1 billion for customer management software company Kofax; eCommerce company Rakuten paid $410 million for ebook marketplace Overdrive; Cheetah Mobile paid $58 million for mobile ad networkMobPartner; TeraGo Networks paid $33 million for cloud provider RackForce; IBM bought natural language and image processing company AlchemyAPI; and in the cable TV world Charter Communications paid $10.4 billion for Bright House Networks. Last year, in March 2016, we saw the $3 billion sale of Dell IBM logoServices to NTT, a direct result of Dell’s restructuring following the recent purchase of EMC. IBM was out bolstering its services business with a couple of acquisitions; the first was Optevia, a UK-based integrator focused on Microsoft Dynamics; and the second was Bluewolf Group, a global Salesforce consulting partner. Montreal-based Yellow Pages picked up Toronto-based Juice Mobile, primarily for its mobile marketing capability. Another Toronto company, Influitive, raised some cash ($8.2 million) and bought a couple of mobile app companies, Ironark Software and Triggerfox; and Netsuite bought IOity solutions, a cloud-based manufacturing software company.

Which brings us back to the present …

Intel logoIn March 2017, the major acquisition in the headlines is Intel’s purchase of Israeli computer vision company, Mobileye, for a hefty $15.3 billion. HPE bought storage solution provider, Nimble, for $1 billion. DeskConnect, the startup that developed the Workflow app, has been acquired by Apple who will offer the app for free. Amazon Web Services, a public cloud infrastructure provider, acquired Thinkbox Software, a company that provides software for managing media rendering workloads. Mozilla acquired Pocket, a startup that developed an app for saving articles and other content.  It is interesting to note, based on my sources that over the last few months, there has been a noticeable decline in Mergers & Acquisitions in the technology space.  Recent articles suggest this might change in the coming months.

canadian flagIn other tech news, Statistics Canada released a report highlighting Canadian participation in the sharing economy, i.e. peer-to-peer services, and its role in the Canadian economy.

Another story that took headlines last month was that US corporate information, including work email addresses and phone numbers, was leaked from a 52-gigabyte database owned by Dun & Bradstreet.

That is it for my monthly look at what was happening in the technology space over the last month, compared to the same month in previous years.  I’ll be back in about a month’s time, until then … walk fast and smile!

Is the Information Technology Industry as “Open” as We Think?

Cameron McCallum By Cameron McCallum,
Regional Vice President at Eagle

Is the Information Technology Industry as "Open" as We Think?

I work in as culturally diverse an industry as can be imagined. The candidates and clients that Eagle works with on a daily basis have origins that span the globe. Eagle itself is a company made up of a conglomerate of languages and cultures. We celebrate our diversity and inclusion almost daily with email bulletins which tell us what days of significance and celebration are occurring. And our work on this front has made us a better company. We are one of Canada’s Best Managed, Best Workplaces and just recently we were named One of Canada’s Best Workplaces for Women. I’ve personally experienced how being a part of this kind of a workplace can create challenges, but I can also attest to the strength of an organization that takes this approach.

At the same time, when I see the current state of politics in the US, I am saddened by the examples xenophobia being expressed by a vociferous minority of Americans. The reality is that this expression of distrust and bigotry is nothing new, instead just choosing a time and place to reemerge in a consistent and persistent manner. Travel bans, patriotic chants, racist actions are not new although headlines from all media sources seem intent on making us feel like they are. And I don’t believe that as Canadians, we are somehow immune to these emotions and, in fact, we share historical and modern similarities with our American neighbors when it comes to discrimination and bigotry.

These actions aren’t limited to national politics, but frequently affect us in our daily lives, including the workplace. As noted above, in the IT industry we have the privilege of working with a diverse group of people, but it’s not to say racism doesn’t exist.  This CIO article written last week by Sharon Florentine asks the question of whether the IT industry is really as open as we think it is and it contains a sobering message. We need to be aware of and take action against systemic discrimination. While outward appearances infer that all is well, there is ample evidence to suggest otherwise.

Referenced Article
Racism in tech runs deep
Sharon Florentine, Senior Writer, CIO
March 9, 2017

IT Industry News for February 2017

Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on The Eagle Blog on March 8th, 2017

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for February 2017. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of previous year’s Februarys …

Five years ago, February 2012 was not a blockbuster month for M&A, but there was some interesting activity.  The biggest deal of the month saw Oracle pay $1.9 billion for talent management company Taleo.  Siemens Canada paid $440 million for networking equipment company Rugged.com.  IBM bought BYOD company Worklight; Dell bought backup and recovery company AppAssure; Apple bought mobile search company Chomp; dell logoand LM Ericsson bought Ottawa based BelAir Networks.   Four years ago in February 2013 Dell went private in a $24.4 billion deal that included a $2 billion investment by Microsoft.  Oracle paid $1.7 billion for networking company Acme Packet Inc.; Rackspace bought big data company ObjectRocket; Telus was busy with two acquisitions, electronic medical records division of the Canadian Medical Association and digital forensics company Digital Wyzdom; HP also sold the Palm operating system to LG for their smart TVs.  February 2014 was busy in M&A. Facebook make a big move with the $16 billion Oracle logo a large software company originally noted for its databaseacquisition of Whatsapp.  Comcast made a $45 billion play for Time Warner Cable and regulatory approval or otherwise is imminent; Oracle paid a reputed $400 million for data management platform company Bluekai; LinkedIn paid $120 million for online job search company Bright; and Klout was bought for about $100 million by Lithium Technologies.  Google made a couple of acquisitions, online fraud company Spider.io and secure logon company Slicklogin.  IBM bought database as a service company Cloudant; and Monster bought a couple of companies, social profile company Talentbin and job aggregation and distribution technology company Gozaic. Finally, Microsoft announced Steve Balmer’s retirement and appointed a new CEO, Satya Nadella.  February 2015 saw some interesting activity.  The $6.3 billion merger of Staples and Office Depot and the $1.6 Billion purchase of Orbitz by Expedia are two examples of sectors experiencing massive consolidation.  There was a big buy in the communications and IT space with Harris paying Microsoft logo$4,75 billion for Excelis to establish a 23,000 person company.  There was a big data center play with UK based Telecity Group paying $2.2 billion for Interxion Holdings.  Microsoft made a couple of acquisitions, paying $200 million for pen-tech maker N-Trig and $100 million for mobile calendar company Sunrise.  Samsung bought a mobile payment company (competing with Apple pay), LoopPay.  Also out buying was Twitter which picked up Niche, a network of social media creators.  There were a number of interesting deals in Asia, including Sapdeal buying luxury fashion estore Exclusively; Foodpanda made six acquisitions of online meal delivery services to establish itself as a powerhouse in that space.  Showing some forethought Australian job board OneShift has bought Adage, which is a job board serving people over 45.  Last year in February 2016 the biggest deal saw HNA Group of China pay $6 billion for Ingram Micro.  Two other billion dollar deals Cisco logoincluded Cisco paying $1.4 billion for IoT company, Jasper Technologies and a consortium of Chinese internet firms making a $1.2 billion bid for Opera. Microsoft was busy with a couple of acquisitions, Xamarin a cross platform mobile application development company, and Swiftkey which produces predictive keyboard technology.  Another busy company was Alibaba Group which was investing in a bunch of companies, including a $100 million investment in Groupon, and smaller investments in microblogging site Weibo; software company Momo; augmented reality startup Magic Leap; Chinese retail chain Suning; and Singapore telco SingPost.  Other companies of note out buying included IBM who bought digital agency Aperto and Blackberry acquired cybersecurity company Encription.

Which brings us back to the present …

The apple logo and apple with a bite out of itFebruary 2017 saw very little M&A action.  Nokia paid $371 million for Finnish telecom software company Comptel, as it reinvents itself, and Apple picked up an AI startup company RealFace.    Another company in the news, but for the wrong reasons was Samsung which is in the middle of a significant bribery scandal.

On the economic front there were a lot of positive indicators out of the US, including adding another 246,000 jobs.  Canada also added 48,000 jobs in January which followed a good December in job creation.  Around the world, the UK is starting to see some labour impacts from the Brexit decision as EU nationals are not applying for jobs they used to do.  Brazil reached a record high in unemployment, in India hiring activity declined and in China there is expected to be a boom in hiring.

Perhaps more interesting this month than the M&A activity, or lack thereof, were some other tidbits of news.

The Irish government have an Action Plan for Jobs that is ahead of plan as of 2016 and is looking to create 200,000 net new jobs by 2020.  Maybe Canada could take a look at an interesting program like this!

An Ipsos survey suggests that Canadians are spending more time on mobile apps than ever, which might explain why everyone you see walking along the street has their face buried in their phone!

Another survey suggests that within the last year 60% of small businesses were the victims of cyberattack!

Finally, another study suggests that global gender diversity is moving, albeit slowly, and at this rate it will take another 20 years to hit parity!

That is it for my monthly look at what was happening in the technology space over the last month, compared to the same month in previous years.  I’ll be back in about a month’s time, until then … walk fast and smile!