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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.

IT Industry News for May 2017

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

This post first appeared on The Eagle Blog on June 5th, 2017
Tech News HeaderThis is my 30,000 foot look at tech events for May 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 May in previous years …

Five years ago, in May 2012, Facebook went public and there was a fair amount of M&A activity. The largest deal saw SAP’s $4.3 billion acquisition of Ariba with CGI’s $2.8 billion acquisition of Logica PLC of particular interest to those of us here in Canada! EMC continued its pattern of acquisitions with the $430 million purchase of XtremIO: perennial acquirer Oracle paid $300 million for social media marketing firm Vitrue; in the storage space Seagate paid $186 million for a controlling interest in LaCie; Microsoft invested $300 million in a Barnes & Noble subsidiary; and LinkedIn paid $118 million for Slideshare. There was plenty more activity, but with the amounts not published. Twitter bought RestEngine; IBM bought customer analytics company Tealeaf Technology; VMware bought Wanova; and Cisco bought Truvisco.

Yahoo logoIn May 2013, Yahoo purchased Tumblr for $1.1 billion. The $6.9 billion deal to take BMC Software private did not cause the same kind of splash … the power of the brand? Manitoba Tel decided to shed its Allstream division to a holding company for $520 million; McAfee paid $389 million for Finnish security firm Stonesoft; Dell added to its cloud capabilities with the purchase of Estratius; AVG bought PrivacyChoice; and Ottawa based N-Able Technologies became one more Canadian company to be bought by a larger US company, this time Solarwinds for $120 million.

In May 2014, AT&T paid $50 billion for DirectTV and Apple paid $3 billion for Beats. Google continued to invest in its Android strategy this time with a strategy company, Divide, that will bring help breaking into the enterprise. Other acquisitions saw Seagate pay $450 million for some flash capability from Avago (the LSI divisions); GE bought cyber security firm Wurdtech; EMC bought a flash (see the trend) start-up DSSD; Time Warner bought Youtube video network FullScreen; and SAP bought behavioral target marketing company SeeWhy.

HP logoMay 2015 saw some very large deals on the M&A front, with the biggest seeing Charter Communications spend $55 Billion to buy Time Warner Cable and a further $10.4 Billion to buy Bright House Networks. This creates the second largest cable company in the US, just behind Comcast. The “Billion-dollar club” also saw French Telco Altice pay $9.1 Billion for another US cable company Suddenlink Communications. Keeping with the billion dollar deals involving telcos, Verizon paid $4.4 Billion for AOL to bolster its mobile video capabilities. Another Billion dollar deal saw HP unload 70% of its stake in its China server, storage and technology storage unit to Tsinghua Holdings for $2.3 billion. The final billion-dollar deal saw EMC pay $1.2 billion for cloud service provider Virtustream. Apple was out buying a couple of companies in May, snapping up mapping company Coherent Navigation and augmented reality company Metaio. In other deals Avaya bought cloud technology company Esna; and Cisco bought cloud programming interface company Tropo.

DXC logoMay 2016 saw some M&A activity with the largest deal seeing HPE merge its services arm with CSC in a $8.5 billion deal to create arguably the largest IT services company. In another large deal Vista Equity Partners is paying $1.79 billion for customer service and marketing cloud provider Marketo. There were some other big names out shopping in May too. Oracle paid $532 million for software as a service for the utilities vertical, company Opower; Google picked up interactive training platform Synergyse; Infor bought consulting services company Merit Globe AS; and ARM paid $350 million for imaging and embedded systems company Apical. Microsoft ended an unhappy period by divesting its feature phone business to FIH mobile for $350 million, and GoDaddy picked up cloud based phone company FreedomVoice for $43 million. New Signature picked up another Microsoft solution provider, Dot Net Solutions; and Edmonton based F12.Net bought Calgary-based professional services company XCEL.

Which brings us back to the present …

The apple logo and apple with a bite out of itThe most significant purchase in May 2017 was the $1.86 billion sale of CenturyLink’s data centres and colocation business to a consortium led by BC Partners, Medina Capital Advisors and Longview Asset Management. Cybersecurity startup, Hexadite, was bought by Microsoft for $100 million. Goldman Sachs entered the BI space by purchasing a minority stake in Information Builders of New York City. Apple acquired Beddit, a Finnish sleep sensor product, for an undisclosed amount. Finnish cybersecurity firm, F-Secure acquired British security consultants, Digital Assurance also for an undisclosed amount.     

Surprisingly, increasing smartphone sales around the world are not coming from tech giants like Apple and Samsung. Chinese smartphone makers are on the rise and gaining significant market share at home and in other densely populated countries.

That is it for my synopsis of  technologynews 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!

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 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!

IT Industry News for January 2017

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

This post first appeared on The Eagle Blog on February 7th, 2017

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for January 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 Januarys …

Five years ago, in January 2012 things were very quiet in M&A – former tech giant JDSU was back on the acquisition trail, even if just to pick up a small Vancouver based company, Dyaptive Systems. Symantec paid $115 million for LiveOffice to help with its storage capabilities, Google bought a bunch more IBM patents, and Xerox picked up Laser Networks in the managed printing space. Rim (now Blackberry) also announced a change in leadership. Three years ago, in January 2013 Cisco bought mobile network software company Intucell for $475 million and sold its Linksys division to Belkin. The biggest dollar value deal was AT&T’s purchase of some of Verison Wireless’s airwaves for $1.9 Billion. Other deals saw NCR buy video software ASTM company uGenius Technology; Canon Canada acquired long-time partner and document management company Oce Canada; NetSuite bought retail management systems company Retail Anywhere; and AVI-SPL bought Duocom-Duologik. January 2014 was an interesting month with a few big M&A deals. Google was an especially busy player, selling its Motorola Mobility handset unit to Lenovo for $2.9 billion but paying $3.2 billion for Nest Labs and the company also bought Bitspin. The other big deal saw VMware pay $1.17 billion for mobile device management company AirWatch. Other big names on the acquisition trail included Oracle who bought cloud based service delivery company Corente; Microsoft paid a reputed $100 million for cloud based service company (seems to be a theme) Parature; Ricoh purchased IT service company Mindshift from BestBuy; and Hootsuite bought analytics company Yahoo logouberVu. In January 2015, the biggest deal was Hutchison offering more than $14 billion for O2. Other big dollar news saw Yahoo looking like it might be remaking itself, spinning off its $40 Billion stake in Alibaba to become smaller, leaner and either buy or be bought! The final M&A activity involving a “B” was Telco equipment company Commscope offering $3 billion for TE Connectivities network business. There were also a number of very well-known companies out buying, and in no particular order … Amazon paid something like $300 million (approximate) for chip designer Annapurna Labs; Expedia bought its online travel competitor Travelocity for $200 million; Samsung paid $100 million for Brazil’s largest print company Simpress; Google paid about $100 million for mobile payments company Softcard; Facebook bought Wit.ai a company that has a Siri like Dropbox logosolution that can be embedded in other products; Dropbox bought CloudOn a document editing and productivity tools company; Twitter paid somewhere between $30 million and $40 million for Zipdial, an Indian company that does some funky marketing thing with phone hang ups; and finally Microsoft made two acquisitions, startup text analytics company Equivo and in a departure from its history it bought open software company Revolution Analytics. There were no huge deals in January 2016, but there was plenty of activity with some of the household names out shopping. IBM bought video service provider Ustream; Microsoft bought game form learning tool MinecraftEdu; Apple bought “emotion recognition” company Emotient; and Oracle bought media web tracking firm AddThis. Toshiba bought an ERP solutions company Ignify, and a number of smaller deals included Juniper Networks buying BTISystems Inc.; FireEye bought iSight partners; Acceo Solutions bought Groupe Techna and SmartPrint bought LaserCorp’s Toronto based managed print services business.

Which brings us back to the present…

Cisco logoIn January 2017 the multi-billion-dollar deal of the month was Cisco’s purchase of app performance management company, AppDynamics for $3.7 billion. HP Enterprise purchased data center hardware provider, SimpliVity for $650 million. Microsoft acquired Montreal-based deep learning start-up Maluuba for an undisclosed sum. Google has announced plans to purchase Twitter’s mobile developer platform Fabric. Trello, the startup behind a leading task-management app has been purchased by Atlassian for $425 million. CRM giant, Salesforce bought Unity&Variety to enhance its productivity app service Quip Managed Service Provider of data and database administration, Datavail, acquired Canadian IT channel leader Navantis.

IBM logoSome non-M&A news in January included IBM announcing it broke the US record for number of patents granted in a single year – 8,088 to be exact. Avaya Inc. announced it filed for Chapter 11 bankruptcy protection as a result of accumulating debt from their major acquisitions in the last ten years. According to a report released by Gartner Inc. 2016 saw a decrease in the shipment of PCs, the lowest it has been since 2007.

That’s my look at the tech news for January 2017. Until next month, walk fast and smile!

IT Industry News for September 2016

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

This post first appeared on the Eagle Blog on October 6th, 2016
Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for September 2016.

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 …
Five years ago in September 2011 Broadcom paid $3.7 Billion for NetLogic.  Google was busy, buying restaurant reviewer Google signZagat plus acquiring 1,000 patents from IBM.  Ottawa’s Zarlink was bought by Microsemi for $525 million.  SAP bought Crossgate, Twitter bought Julpan and CSC bought Indian software testing company AppLabs, and Hitachi Data Systems continued the consolidation in the storage industry with the acquisition of BlueArc.  September 2012 was a quiet month in M&A deals.  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. Three 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 Microsoft logoSystems 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.  Last year in September 2015 there was a fair bit of M&A activity but no blockbuster deals.  Microsoft was very active, closing three deals, IBM logoAdxstudio 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.

Which brings us back to the present …

HP new log 2016September 2016 was a slow month for M&A but there were a couple of large deals.  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.

Economic news was generally positive around the world with a few exceptions, Brazil being the most obvious having had 17 straight months of job losses.  The US was, surprisingly to me, fairly positive in most indicators despite the upcoming election and their “interesting” potential presidents.  The Canadian outlook seemed generally positive, of course these reports were prior to announcements of carbon taxes.  The economy certainly doesn’t “feel” positive.

Yahoo logoYahoo had some more bad press, this time for a security breach that happened two years ago affecting 500 million accounts and Blackberry announced that it was getting out of the hardware business.

A couple of studies looking at emerging technologies saw increasing investment in big data analytics and IoT in the manufacturing sector and a suggestion that robots might only replace 6% of jobs in the future.  (I wonder if a robot could become President? Or Prime Minister? OR Premiere?  Pretty sure right now I might vote for them!))

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 2016 tech news in just about a month’s time.

IT Industry News for June 2016

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

This post first appeared on the Eagle Blog on July 6th, 2016

Tech News HeaderThis is my 30,000 foot look at events in the tech industry for June 2016. 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 2011 the big deal of the month was Ericsson’s $1.5 Billion purchase of Tecordia; Oracle made a couple of acquisitions (storage vendor Pillar Data and Google signFatwire Software); Google also made a couple of acquisitions, (analytics company PostRank and advertising management company Admeld).  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). Salesforce logoThree years ago, June 2013 saw Salesforce.com’s $2.5 billion purchase of marketing technology company ExactTarget as the big buy of the month.  Other acquisitions saw Irish mobile company Three pay $780 million for O2 Ireland; 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 the last year.  June 2014 saw 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 that would enhance the Google Maps capability. Twitter paid $100 million for mobile marketing Intel logoplatform Tap Commerce and Red Hat paid $95 million for eNovance.  Last year, June 2015 saw Intel pay $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.

Which brings us back to the present

LinkedIn LogoJune 2016 was certainly an interesting month, with the Brexit vote upsetting the markets and causing uncertainty that will likely continue for some time yet; plus there was plenty of M&A activity.  The big deal was undoubtedly the Microsoft purchase of LinkedIn for a whopping $26 billion.  There were other billion dollar deals this 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 saw Daetwyler Holdings AG pay 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 deals saw an investment group buy 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.

The US economic news was less buoyant, but they still added 170,000 new jobs and all indicators are relatively positive, just not as positive as the past couple of years.  Canada continues to show little sign of booming, but that is likely expected given our dependence on a hurting resource sector and the ambivalence of our governments to provide any help to that sector.

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 2016 industry news in just about a month’s time.

IT Industry News for May 2016

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

This post first appeared on Eagle’s CEO Blog on June 6, 2016

Tech News HeaderThis is my 30,000 foot look at events in the tech industry for May 2016. 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 May in previous years…

Five years ago in May 2011 the biggest news was Microsoft’s record breaking offer of $8.5 Billion for Skype.  Other M&A activity included Nvidia paying $367M for Icera; Rambus buying Cryptography Research for $342M in the security space; Sandisk acquiring Pliant Technology in the storage world for $327M; and Twitter paying $40M for TweetDeck.  Facebook logoIn May 2012 Facebook went public and there was a fair amount of M&A activity.  The largest deal saw SAP’s $4.3 Billion acquisition of Ariba with CGI’s $2.8 Billion acquisition of Logica PLC of particular interest to those of us here in Canada!  EMC continued its pattern of acquisitions with the $430 million purchase of XtremIO: perennial acquirer Oracle paid $300 million for social media marketing firm Vitrue; in the storage space Seagate paid $186 million for a controlling interest in LaCie; Microsoft invested $300 million in a Barnes & Noble subsidiary; and LinkedIn paid $118 million for Slideshare.  There was plenty more activity, but with the amounts not published.  Twitter bought RestEngine; IBM bought customer analytics company Tealeaf Technology; VMware bought Wanova; and Cisco Yahoo logobought Truvisco.  The big news three years ago in May 2013 was Yahoo’s $1.1 billion purchase of Tumblr.  The $6.9 billion deal to take BMC Software private did not cause the same kind of splash … the power of the brand?  Manitoba Tel decided to shed its Allstream division to a holding company for $520 million; McAfee paid $389 million for Finnish security firm Stonesoft; Dell added to its cloud capabilities with the purchase of Estratius; AVG bought PrivacyChoice; and Ottawa based N-Able Technologies became one more Canadian company to be bought by a larger US company, this time Solarwinds for $120 million.  In May 2014 AT&T paid $50 billion for DirectTV and Apple paid $3 billion for Beats. Google continued to invest in its Android strategy this time with a strategy company, Divide, that will bring help breaking into the enterprise.  Other acquisitions saw Seagate pay $450 million for some flash capability from Avago (the LSI divisions); GE bought cyber security firm Wurdtech; EMC bought a flash (see the trend) start-up DSSD; Time Warner SAPbought Youtube video network FullScreen; and SAP bought behavioral target marketing company SeeWhy.  Last year May 2015 saw some very large deals on the M&A front, with the biggest seeing Charter Communications spend $55 Billion to buy Time Warner Cable and a further $10.4 Billion to buy Bright House Networks.  This creates the second largest cable company in the US, just behind Comcast.  The “Billion dollar club” also saw French Telco Altice pay $9.1 Billion for another US cable company Suddenlink Communications.  Keeping with the billion dollar deals involving telcos, Verizon paid $4.4 Billion for AOL to bolster its mobile video capabilities.  Another Billion dollar deal saw HP unload 70% of its stake in its China server, storage and technology storage unit to Tsinghua Holdings for $2.3 billion.  The final billion dollar deal saw EMC pay $1.2 billion for cloud service provider Virtustream.  Apple was out buying a couple of companies in May, snapping up mapping company Coherent Navigation and augmented reality company Metaio.  In other deals Avaya bought cloud technology company Esna; and Cisco bought cloud programming interface company Tropo.

Which brings us back to the present …

CSC logoMay 2016 saw some M&A activity with the largest deal seeing HPE merge its services arm with CSC in a $8.5 billion deal to create arguably the largest IT services company.  In another large deal Vista Equity Partners is paying $1.79 billion for customer service and marketing cloud provider Marketo.  There were some other big names out shopping in May too.  Oracle paid $532 million for software as a service for the utilities vertical, company Opower; Google picked up interactive training platform Synergyse; Infor bought consulting services company Merit Globe AS; and ARM paid $350 million for imaging and embedded systems company Apical.  Microsoft ended an unhappy period by divesting its feature phone business to FIH mobile for $350 million, and GoDaddy picked up cloud based phone company FreedomVoice for $43 million.  New Signature picked up another Microsoft solution provider, Dot Net Solutions; and Edmonton based F12.Net bought Calgary based professional services company XCEL.

The apple logo and apple with a bite out of itOther companies in the news included Apple who invested $1 billion into the Chinese “Uber” called Didi Chuxing; and Microsoft announced another 1,850 job cuts related to its mobile phone business.

One security report out of the UK suggests that two thirds of large businesses have suffered cyber attacks; another IDC report suggests the big data and analytics market will expand by 50% over the next 4 years; and a Gallup report tells us that millennials are changing jobs faster than any other cohort.

Economic data continues to show a Canadian economy that is limping along and a US economy that continues to grow (another 165,000 new jobs last month).  Other countries with positive news included the UK, Ireland, Germany and, New Zealand.  China also reported that demand exceeds supply for its labour force.  The Caribbean and Latin America are however predicting increased unemployment.

That is my look at the May tech news.  The full edition will be available soon on the Eagle website.  Hope this was useful and I’ll be back with the June 2016 industry news in just about a month’s time… until then, walk fast and smile!