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IT Industry News for July 2019

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

This post first appeared on the Eagle Blog on August 13th, 2019

Tech News HeaderThis is my 30,000-foot look at events in the ICT industry for July 2019. 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 2014, there was plenty of M&A activity but no real blockbuster deals.  BlackBerry bought encryption company Secusmart GmbH; Oracle bought cloud services Oracle logo a large software company originally noted for its databasecompany TOA Technologies; Twitter bought a startup Madbits, a company that focusing 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.

July 2015 saw no billion-dollar deals, but there was some activity with some big names out Microsoft logoshopping.  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 bought a cloud development platform Stackato; Blackberry bought AtHoc, 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.

In July 2016 Verizon made 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 2016 billion dollar club was security vendor Avast, who bought AVG for $1.3 billion. Other deals 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.

July 2017 saw Cincinnati Bell buy Hawaiian Telcom Holdco for $650 million and OnX for Mitel Logo$201 million. Mitel paid $430 million for ShoreTel and bought Toshiba’s unified communications business. In Toronto, digital signage solution provider, Dot2Dot, acquired Pixel Point Digital. PNI Canada Acuireco Corp. purchased Sandvine Corp. for $562 million, with plans to merge Sandvine with Procera Networks.

Last year July 2018 was a busy M&A month with the biggest deal of the month, a somewhat unlikely $19 billion acquisition of CA Technologies by Broadcom.  Solution provider, Atos paid $3.45 billion for Syntel, creating a large North American presence.  Fortive paid $2 billion for physical resource management software company Accruent, and the last billion dollar deal of the month saw SS&C pay $1.45 billion for investment technology company Eze Software.  Other deals saw AT&T buy cybersecurity company Alienvault; Hitachi bought AWS integrator Rean; Intel bought specialty chip maker eAsic Corp; Accenture continued its acquisition spree with the purchase of AI company Kogentix; and Getronics re-entered the North American market with the purchase of Pomeroy.

Which brings us back to the present …

July is quite often a slower news month, and July 2019 was a little like that.  Having said Cisco logothat, there were some big deals announced.  Cisco’s $2.6 billion acquisition of Acacia Communications was the biggest deal. Apple splashed $1 billion to buy Intel’s smartphone modem business, and KKR bought Corel for $1 billion too.  There were a few more deals hit my radar with Google buying storage company Elastifile; 8X8 cloud communications company paying $100 million for Platform as a service company Wavecell; and finally Epam Systems bought educational content company Competentum.

There was another big cyber breach announced with Capital One sharing data on more than 100 million customers.  There was also a malware called “Agent Smith” that infected 25 million Android devices.  A report on how AI will impact on jobs seemed significant, but most of the respondents believe new roles will replace the lost jobs.

On the economic front the current US economic expansion is the longest on record, and there are still lots of positive indicators.  Canada lost jobs in June and continues to have struggles.  Around the world most indicators were positive, with a few notable exceptions … South Africa caught the eye with the highest jobless rate since 2003.

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 2019 industry news in just about a month’s time.

Walk Fast and Smile

IT Industry News for June 2019

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 2019. 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 2014, Oracle paid $5 billion for Micros Systems; Sandisk paid $1.1 Oracle logo a large software company originally noted for its databasebillion 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 Intel logo$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.

Three years ago, June 2016 saw Microsoft buy LinkedIn for a whopping $2.6 billion. There were other billion dollar deals that month too: Salesforce paid $2.8 billion for e-commerce Microsoft logoplatform 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.

June 2017 saw Amazon’s purchase of Whole Foods for $13.7 billion. Westcon-Comstar’s Amazon logoAmerican business bought by Synnex for approximately $800 million. US fintech provider, Fiserv purchased British financial services technology firm, Monitise for $88.7 million. Microsoft purchased Israeli cloud startup, Cloudyn, for a price between $50 million and $70 million. Rackspace bought TriCore in an effort to increase Rackspace’s business from customers who want help running their critical applications.

Last year, June 2018 saw a fair bit of M&A activity, the biggest deal seeing Synnex pay $2.43 billion for call centre company Convergys and AT&T pay $1.6 billion for advertising tech IBM logocompany AppNexus. Palo Alto Networks paid $300 million for security company Evident.io; PayPal shelled out $120 million for fraud detection startup Simility; Splunk paid $120 million for incident management platform company VictorOps; Ribbon Communication paid $120 million for Edgewater Networks; and Sharp shelled out $36 million for Toshiba’s PC business. Other companies out shopping included Cisco, who bought WiFi analytics company July Systems; IBM bought maintenance and repair company Oniqua and Shopify bought app company Return Magic.

Which brings us back to the present

June 2019 saw some significant M&A deals with the Salesforce acquisition of Tableau for Salesforce logo$15.7 billion, the largest deal of the month. Infinion Technologies paid $10 billion for Cypress Semiconductor; Google paid $2.6 billion for data analytics company Looker; Capgemini shelled out $3.6 billion for engineering company Altran and in the robotics world, Blue Prism paid $100 million for Thoughtonomy. Other companies with smaller buys included Apple picking up the assets of Drive.ai and Twitter buying machine learning startup Fabula AI.

The Canadian Federal Government invested $5 million into an innovation centre in Markham, which is a trend we are seeing more often. There was also more news about CyberSecurity breaches, with suggestions of state sponsored hackers focusing on telecommunication companies.

canadian flagIn Canada, the job numbers are interesting, with Statistics Canada suggesting May was a bumper month, and ADP suggesting we actually lost jobs. The methods of data gathering differ so it will be interesting see how it works out over time.

The US had some mixed reports regarding the economy but overall the story is still positive, with some reports focusing on the growth being not as great as it was… still growth! Generally, indicators in the US economy are positive. Likewise, indicators on jobs and employment around the world are also positive.

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 2019 industry news in just about a month’s time.

Walk Fast and Smile