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IT Industry News for December 2017


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

This post first appeared on The Eagle Blog on January 5th, 2018

This is my 30,000 foot look at events in the Tech industry for December 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 Novembers

Five years ago, in December 2012 there was a fair amount of M&A activity with Oracle making two acquisitions, marketing automation company Eloqua ($871 million) and Dataraker which provides analytics for utilities companies.  The big deal of the month saw Sprint pay $2.2 Billion to take full control of cellular competitor Clearwire.   Montreal based Cogeco paid $635 million for Peer 1 Networks and NCR paid $635 million for retail software and services company Retalix.  In the BYOD space Citrix bought mobile device management company Zenprise for $355 million.  Finally, Redknee added 1200 employees and 130 new clients through the purchase of Nokia Siemens’ Business Support Network. December 2013 was a slow month, however Oracle pulled off a $1.5 billion buy of marketing software company Responsys; Akamai paid $370 million for cloud-based security solutions provider Prolexic; JDS Uniphase paid $200 million for enterprise performance management company Network Instruments; IBM bought a “big data” file compression company Aspera and Hitachi expended its solutions capability with the purchase of Calgary based Ideaca.  In other company news Target, although not an IT company, had a major security breach involving details of 40 million debit and credit cards.  Three years ago December 2014 was not such a slow news month, with the political and technical ramifications of “the Sony hack” causing uproar, some very positive economic indicators out of the US and some big names making acquisitions, albeit not huge deals.  Microsoft made two acquisitions, the $200 million purchase of mobile email app startup Acompli and mobile development company HockeyApp (which has nothing to do with hockey).  SAP bought travel and expense management company Concur; Intel bought a Montreal based identity management company PasswordBox; Oracle bought digital marketing company Datalogix; Teradata bought data archiving company Rainstor; and MongoDB bought high-scale storage engine company WiredTiger. December 2015 was not a busy M&A month but there was some interesting activity.  The big deal saw Canadian telco Shaw make a big play into the cellular space with its proposed acquisition of Wind for $1.6 billion.  Meanwhile Rogers was also out shopping and growing its Maritimes presence through the acquisition of Internetworking Atlantic Inc.  Other deals in December were not large but did feature some of the big players.  Oracle bought Stackhouse a cloud company with a specialization in “containers”; IBM boosted its video in the cloud capabilities with the purchase of Clearleap; and Microsoft picked up a mobile communications company, Talko.  Other deals saw Ingram Micro buy the Odin Service Automation business from Parallels and in the storage world Carbonite bought Evault from Seagate.  Last year in December 2016 Adecco sold its majority stake in Beeline VMS to GTRC, a private equity firm, for $100 million in cash plus a $30 million note; CRN solution provider SS&C purchased asset service firm Conifer for $88.5 million; solution provider QRX Technology Group acquired IT equipment provider Kerr Norton; networking solution provider, Juniper Networks acquired cloud operations management provider AppFormix; Uber bought start-up Geometric Intelligence Inc.; and Shopify acquired Tiny Hearts, a Toronto-based mobile product development studio.  Yahoo hit the news revealing that one billion accounts were hacked in 2013 making it the largest data breach recorded in history.

Which brings us back to the present …

 December 2017 saw Atos enhance the footprint of their IT Services firm by paying $5 billion for Gemalto.  Apple were busy, paying $400 million for music recognition app Shazam plus they invested $390 million into optical communications components company Finisar.  Finally, in a relatively quiet M&A month Ingram Micro increased its data protection capability through the purchase of Cloud Harmonics.

The Canadian economy had some positive indicators, adding jobs and reducing the unemployment rate to 5.9%.  The US also continued its growth rate, albeit at a slightly reduced pace although the announced tax changes for business are going to provide a significant stimulus.  Generally reports from around the globe were fairly positive, with job growth and reduced unemployment in most countries.

There was a cautionary report about ransomware in Canada that might suggest up to 44% of SMBs were hit with ransomware in a 12 month period.

That’s what I saw affecting the tech industry for December 2017.

Until next month Walk Fast and Smile!

IT Industry News for November 2017


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

This post first appeared on The Eagle Blog on December 5th, 2017

Tech News HeaderThis is my 30,000 foot look at events in the Tech industry for November 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 Novembers

Five years ago in November 2012 Cisco made two significant “buys”, cloud infrastructure company Meraki ($1.2B) and cloud datacentre and software company Cloupia ($125M); Dell bought software tools company Gale Technologies; NCR bought retail software company Retalix ($650M); Cray bought software company Appro ($25M); Sprint Nextel bought a chunk of US Cellular ($480M); and Toronto based NexJ (headed by another ex-Andersen Consulting alumni) bought Broadstreet for $8.2 million.   In November 2013 Opentext paid $1.1 Billion for cloud based integration services company GXS Group and another Canadian deal saw Mitel buy Aastra for close to $400 million.  Other deals included ebay’s $800 million purchase of global payments company Braintree; Apple’s $370 million purchase of 3D sensor company PrimeSense; and Akamai’s purchase of Velocius Networks. Three years ago November 2014 was an exceptionally quiet month on the M&A front with the largest deal being the merger of two semiconductor companies, Cypress Semiconductor and Spansion to form a $4 billion company; private equity company Carlyle Group paid $700 million for investment bank technology company Dealogic and Yahoo shelled out $640 million for video advertising company BrightRoll.  November 2015 saw expedia pay $3.9 billion for HomeAway as a vehicle to better compete with Airbnb.  Zayo Holding Group became the first foreign company to own a Canadian telco after paying $465 million for Allstream.  Other, smaller deals saw Apple buy Faceshift, a motion capture company whose technology was used in a Star Wars movie; and Lightspeed POS bought SEOshop, increasing its size as a competitor to Shopify.  Other deals saw Ingram Micro grow its Brazilian presence with the purchase of ACAO; PCM bought Edmonton based services firm Acrodex; Data centre company CentriLogic bought infrastructure company Advanced Knowledge Networks; solution provider Scalar Systems bought another Toronto company, professional services firm Eosensa; and Washington based New Signature bought Toronto based Microsoft Partner, Imason.  Last year November 2016 saw Broadcom acquire Brocade Communication Systems for $5.9 billion; Adobe purchased multi-channel programmatic video platform TubeMogul for $540 million; IT services and outsourcing provider Wipro Limited bought IT cloud consulting firm Appirio for $500 million; Oracle Corp. announced its plans to acquire DNS solution provider, Dyn Inc.; SoftwareOne acquired and integrated House of Lync; and Avnet completed an acquisition of Hackster.

Which brings us back to the present …

November 2017 saw some interesting information from countries round the world.  China’s growth slowed a little, India is struggling in the IT jobs space and there are some negative some effects from the upcoming Brexit that are affecting the UK and EU.  The US is looking strong again following a hurricane affected dip and Canada added 35,000 jobs in October.

The Big M&A activity for the month sees investment firm Thoma Bravo pay $1.6 billion for Barracuda networks.  McAfee also made an acquisition of Skyhigh Networks now that they are no longer a part of the Intel group of companies.  Smaller deals saw Talend buy Restlet and Qualys buy Netwatcher.

Other companies in the news include Lenovo, a struggling hardware company in a declining PC market and laying off 2% of their workforce.  The other company of interest was Uber who revealed a massive security breach which they had neglected to mention when it happened a year ago!

That’s what I saw affecting the tech industry for November 2017.  Until next month Walk Fast and Smile!

IT Industry News for October 2017


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

This post first appeared on The Eagle Blog on November 14th, 2017

A Little History of previous year’s Octobers

Tech NewsFive years ago in October 2012, news was dominated by Hurricane Sandy and the US presidential election.  The big deal of the month was a $1.5 billion merger of two US cell carriers, T-Mobile and MetroPCS. There were also a number of smaller deals, with EMC beefing up in the security area (Silver Tail), Telus expanding its medical solutions portfolio (Kinlogix Medical) and Avnet improving its IBM capabilities (BrightStar and BSP). In the social networking world, Yelp bought its European competitor Qype in a $50 million deal. In October 2013, Oracle announced two acquisitions, both cloud based companies: Big Machines and Compendium. Other “names” out shopping included Avaya buying the software division of ITNavigator for its call centre and social media monitoring software; Rackspace bought ZeroVM, a tech company with a software solution for the cloud; Intuit bought consulting company Level Up Analytics, primarily to acquire its talent; VMWare bought “desktop as a service” company Desktone; Netsuite bought human capital software company TribeHR; and Telus enhanced its mobile offering with the purchase of Public Mobile. Three years ago, in October 2014 we saw a new trend with two public companies both choosing to split into smaller entities. HP announced it was creating a business service focused Hewlett-Packard Enterprise and personal computing & printer company HP Inc. Symantec also chose to split into two independent public companies, one focused on business and consumer security products, the other on its information management portfolio. Other interesting news saw IBM pay $1.5 billion to GlobalFoundries so it would take away its money-losing semiconductor manufacturing business. NEST bought competitor Revolv; EMC bought three cloud companies — The Cloudscaling Group, Maginatics and Spanning Cloud Apps — and in Korea, Kakao and Daum merged to form a $2.9 billion internet entity. October 2015 brought some big deals with the biggest seeing Dell offer $26 billion to buy storage company EMC. Interestingly an EMC subsidiary, VMWare was also out shopping, picking up a small email startup, Boxer. In another deal involving “big bucks”, Western Digital paid $19 billion for storage competitor Sandisk. IBM were also writing a big cheque, paying $2 billion in a big data/internet of things play for The Weather Network (minus the TV operations), and IBM also picked up a storage company, Cleversafe. Cisco paid $522.5 million for cybersecurity firm Lancope; LogMeIn paid $110 million for LastPass; Trend Micro paid $350 million for next generation intrusion prevention systems company HP Tippingpoint; Red Hat picked up deployment task execution and automation company Ansible; Vasco Data Security paid $85 million for solution provider Silanis; and Apple bought a speech processing startup, VocalIQ. As industries converged, it was interesting to see Securitas pay $350 million for Diebold’s US Electronic Security business. October 2016 saw Qualcomm pay $47 billion for NXP Semiconductor. The only other sizable deal saw Wipro pay $500 million for IT cloud consulting company Appirio. Google picked up Toronto-based video marketing startup FameBit and Pivot Technology Solutions picked up Ottawa-based Teramach.

Which brings us back to the present

October 2017 continues a recent trend of reduced big ticket M&A activity, although there was certainly some action. Not yet a done deal, but Broadcom is chasing Qualcomm pretty hard and if it goes through it will be the biggest tech deal yet.  The latest rejected offer was north of $100 billion (some reports said $130 billion), but watch that space. In the meantime, Cisco is shelling out $1.9 billion for Broadsoft which improves Cisco’s software capabilities. The final significant deal saw Telus beef up its service provider capability with a $250 million purchase of Xavient.

The other company in the news was Amazon (a) because of its much publicized search for a site for its second headquarters which has 239 cities around the world excited at their prospects; (b) because they also announced a second presence in Vancouver, bringing another 1,000 jobs and (c) for its growing influence in the AI world, announcing a research center in Germany.

The economy continues to have many positive signs, although Hurricane’s Harvey, Irma and to a lesser extent Maria caused some temporary negative impact to employment numbers in the US. The general consensus seems to be that things will pick up again now, with some sectors even benefiting from the clean-up work. Canada’s numbers were again good with Canada adding more than 300,000 jobs in the last year.

IT Industry News for September


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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


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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


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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


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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


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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


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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


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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!