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IT Industry News for May 2019

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

This post first appeared on the Eagle Blog on May 3rd, 2019

This is my 30,000 foot look at events in the Tech industry for April 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 previous year’s Aprils …

The apple logo and apple with a bite out of itFive years ago, in April 2014 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 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.

Bell logoApril 2016 saw some big deals, the biggest was Bell’s $3.8 billion bid for Manitoba Telephone System, which closed in 2017.  Other large deal saw a Chinese conglomerate bid $3.6 billion for Lexmark; and Plantronics 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, and 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.

ACCENTURE LOGOTwo years ago in April 2017 Microsoft bought Israeli cloud-monitoring and analytics startup, Cloudyn. Flipkart, one of India’s larger ecommerce companies, acquired the Indian division of eBay (eBay.in) as part of eBay’s $500 million investment in Flipkart. VMware’s vCloud Air unit was 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, was 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.

Mitel LogoLast year April 2018 was not super busy on the M&A front although there were a few deals, including a $2 billion purchase of Ottawa based Mitel by Searchlight Partners, who will take the company private.  Mobile payments company Square paid $365 million for website company Weebly; iconic photo site Flickr has been bought by SmugMug; Adobe acquired AI startup Uru; Indeed bought Canadian jobs site Workopolis; and HPE Pointnext bought Redpixie. 

Which brings us back to the present …

Intel logoApril 2019 was an extremely slow M&A month with just two deals hitting my radar.  Intel bought Omnitek, a company that produces programmable chips for the video space.   This comes as Intel announced it was exiting the 5G modem space for smartphones, suggesting it was not a profitable business for them.  The other deal saw the merger of two large US based MSPs, as Corsica bought EDTS to compete at the next level.

Microsoft logoAnother company in the press this month was Microsoft, who reached that magic valuation point of $1 trillion, becoming the third company to hit hat milestone after Apple and Amazon.

The general economic news was positive with the US continuing to soar with very low unemployment, rising wage rates, an annualised GDP growth rate of 3.2% in the first quarter all suggesting the US boom will continue for a while yet.  Canada continus its anemic growth rate, projected at 1.2% this year.  Around the world unemployment is generally down except for pockets like the UK where the Brexit situation continues to be a mill stone around their necks.

IT Industry News for March 2019

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

This post first appeared on the Eagle Blog on April 1, 2019

Tech News Header This is my 30,000 foot look at events in the Tech industry for March 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 March in previous years … Facebook logoFive years ago in March 2014 Facebook made a somewhat surprising $2 billion acquisition of virtual reality company Oculus VR. Intel also expanded its horizons with the $150 million acquisition of smart watch maker, Basis Science. SAP added to its purchasing software suite with the acquisition of Fieldglass and TELUS made a couple of buys, Enode, a management consulting company out of Quebec and Med Access, an addition in British Columbia, to their healthcare division. HP logo

In March 2015 HP paid $3 billion for Aruba Networks; Lexmark paid $1 billion for customer management software company Kofax; eCommerce company Rakuten paid $410 million for ebook marketplace Overdrive; Cheetah Mobile paid $58 million for mobile ad network MobPartner; TeraGo Networks paid $33 million for cloud provider RackForce; IBM bought natural language and image processing company AlchemyAPI; and in the cable TV world Charter Communications paid $10.4 billion for Bright House Networks.

dell logoMarch 2016 saw the $3 billion sale of Dell Services to NTT, a direct result of Dell’s restructuring following the recent purchase of EMC. IBM was out bolstering its services business with a couple of acquisitions; the first was Optevia, a UK-based integrator focused on Microsoft Dynamics; and the second was Bluewolf Group, a global Salesforce consulting partner. Montreal-based Yellow Pages picked up Toronto-based Juice Mobile, primarily for its mobile marketing capability. Another Toronto company, Influitive, raised some cash ($8.2 million) and bought a couple of mobile app companies, Ironark Software and Triggerfox; and Netsuite bought IOity solutions, a cloud-based manufacturing software company. Amazon Web Services

Two years ago, in March 2017 Intel bought Israeli computer vision company, Mobileye, for a hefty $15.3 billion. HPE bought storage solution provider, Nimble, for $1 billion. Amazon Web Services, a public cloud infrastructure provider, acquired Thinkbox Software, a company that provides software for managing media rendering workloads. Mozilla acquired Pocket, a startup that developed an app for saving articles and other content.

Salesforce logoIn March 2018 there was a significant amount of M&A activity.  The deal of the month saw Salesforce pay $6.5 Billion for cloud integration company Mulesoft.  Plantronics paid $2 Billion for unified communications company Polycom; and Amazon paid $1 Billion for smart home company Ring.  Other deals saw eBay shell out $700 million for the commerce platform Qoo10; Cognizant buy Bolder Healthcare Solutions; HPE Aruba buy Cape Networks; VMWare buy security company, E8; and Deloitte pick up API Talent in New Zealand.  It is also nice to see Avaya buying Spoken Communications after leaving Chapter 11 bankruptcy protection.

Which brings us back to the present …

The apple logo and apple with a bite out of itIn March 2019, the big deal of the month saw Nvidia shell out $6.9 billion for data centre solutions vendor, Mellanox.  F5 Networks paid $670 million for up and coming competitor NGINX; and Juniper Networks paid $40 million for AI startup Mist Systems.  Some other deals this month were Apple’s acquisition of machine learning startup LaserLike; Veritas’ acquisition of analytics company Aptare; Mastercard bought security company Ethoca; and Spotify added to its podcast capability with the purchase of Parcast.

Other companies in the news included Lyft, which was the first of several high-profile tech companies with planned IPOs in 2019; SAP who announced a major round of layoffs and SAS who joined the growing number of companies investing big in AI, announcing a $1billion investment. 

The University of Toronto received a $100 million donation (largest ever) from power couple, Heather Reisman (Indigo) and Gerry Schwartz (Onyx), to build an innovation centre.

In economic news around the world, Brexit continues to dominate news and the economy in the UK and not in a good way.  Around the world, economic news was generally relatively positive, although things are slowing down and forecast GDP growth in the US and Canada has been downgraded for 2019.

That is 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 in just about a month, until then … walk fast and smile!

IT Industry News for February 2019

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

This post first appeared on the Eagle Blog on March 9, 2019

Tech News Header This is my 30,000 foot look at events in the Tech industry for February 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 previous years’ Februarys … Five years ago, in February 2014, Facebook made a big move with the $16 billion acquisition of WhatsApp.  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 Facebook logoby 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 the $6.3 billion merger of Staples and Office Depot and the $1.6 Billion Microsoft logopurchase of Orbitz by Expedia.  There was a big buy in the communications and IT space with Harris paying $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.  Australian job board OneShift bought Adage, which is a job board serving people over 45.

In February 2016, the biggest deal saw HNA Group of China pay $6 billion for Ingram Micro.  Two other billion dollar deals included 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.

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

Last year, February 2018 was a very active month in M&A.  There was more consolidation in the telco space with US based GTT paying $2.3 billion for London headquartered Interroute, thus expanding its global footprint.  Security companies were a theme in this month’s acquisitions and you will spot several in the following list.  Cybersecurity firm Phishme was bought with $400 million of private equity money; Splunk paid $350 million for Phantom Cyber Corp; and Proofpoint paid $225 million for Wombat Security Technologies.  Other deals saw LogMeIn pay $342 million for Jive Communications; Carbonite pay $146 million for Mozy; and Red Hat paid $250 million for Core OS.  Some of the household names that were also out making deals included Oracle, Google, Opentext, Avaya and Citrix.

Which brings us back to the present …

February 2019 was a relatively busy month in M&A but there were no blockbuster, billion dollar deals.  The biggest deal I saw was Carbonite’s $618 million acquisition of internet security company Webroot.  Palo Alto Networks seems to be on a buying spree, closing two deals this month, $560 million for analytics company Demisto and $170 million for cloud security startup, RedLock.  The money guys were out shopping too, with Thoma Bravo paying $270 million+ for MSP platform company Connectwise and Trive Capital paid $330 million for Windstream’s Earthlink telephone service provider assets.  Spotify announced its podcast intentions with a couple of acquisitions, Gimlet Media and Anchor, and Witricity strengthened its hand in the wireless charging space with the acquisition of Qualcomm’s Halo business unit. Microsoft logoThere were some big names out shopping too, including Microsoft who picked up Datasense in the education space; Amazon picked up eero in the home automation world; DXC picked up EG A/S a services company in Europe; and Semantec bought cybersecurity startup Luminate Security. Amazon logo

Other companies in the news include Canadian engineering company SNC-Lavalin embroiled in a scandal that is rocking the government; Cognizant paid a $25 million fine for corruption; Monster announced some layoffs; and after a lengthy process Amazon rescinded its choice of New York as a location for a huge investment & additional “headquarters”.

Around the world the jobs situation is generally positive, if not “as positive” as in previous months.  The Brexit situation is having  negative effect in the UK, India posted poor employment numbers that could impact an upcoming election and the US suffered through a government shutdown that impacted their numbers.

Facebook logoA couple of interesting tidbits, that probably come under the title “doesn’t time fly” … it has been 5 years since Facebook bought Whatsapp AND Steve Balmer retired as CEO of Microsoft making way for current CEO Satya Nadella. 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 December 2018

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

This post first appeared on the Eagle Blog on January 17, 2019

Tech News Header

This is my 30,000 foot look at events in the Tech industry for October 2018.

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 Decembers …

Oracle logo a large software company originally noted for its databaseFive years ago, December 2013 Oracle paid $1.5 billion for 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. 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. Three years ago, 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 (subsequently approved) 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. Uber logoIn 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. The apple logo and apple with a bite out of itLast year, 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.

Which brings us back to the present …

IBM logoDecember 2018 saw IBM sell off a portion of their software portfolio to HCL for $1.8 billion.  Cisco paid $660 million for optical chip company, Luxtera; and OpenText paid $310 million for data management company Liaison Technologies.  In other deals, Google bought “where is my train” app company, Sigmoid Labs; Corel bought desktop virtualization company Parallels; Trello bought Butler, whose product is a popular addition for Trello users; Kaseya bought IT documentation company IT Glue; and GE continued its restructuring efforts by spinning out its IoT subsidiary and selling its interest in Pivotal.  Finally the end of December was the beginning of Dell’s return as a public company.

Huawei logoOther companies in the news include Huawei, who are facing bans in many countries with concerns over its relationship to the Chinese government; and Verizon announced some large scale layoffs, affecting 10, 400 jobs.

The economic and job news continues to be generally positive, with the US continuing to have impressive results and Canada having some good results (November jobs) and some tepid performance (GDP numbers).  Around the world things seem relatively positive other than some notable spots, the UK with Brexit and Chine with some economic retraction.

That’s my look at the tech news for December 2018.

Until next month, walk fast and smile!

IT Industry News for November 2018

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

This post first appeared on the Eagle Blog on December 7, 2018

IT Industry News - November 2018A Little History of previous year’s Novembers …

Five years ago 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.

November 2014 was an exceptionally quiet month on the M&A front with the largest deal Yahoo logobeing 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.

The apple logo and apple with a bite out of itThree years ago 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.

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.

Last year in November 2017 the big M&A activity for the month saw 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.

Which brings us back to the present …

November 2018 was a busy month in the M&A space, with lots of action!  The largest deal saw SAP shell out $8 billion for experience management company Qualtrics.  Not far behind was Commscope paying $7.4 billion for telecommunication equipment maker ArrisVista Equity partners paid $1.94 billion for cloud software company Apptio; and private equity fund CVC paid $1.8 billion for a global IT and managed services provider, ConvergeOne Holdings.  The final billion dollar deal saw Blackerry make its largest acquisition to date, paying $1.4 billion for AI cybersecurity startup Cylance.

LinkedIn LogoIn other deals, Thoma Bravo bought security testing vendor Veracode for $950 million; LinkedIN paid $400 million for a surveying startup, Glint; power management company Eaton is paying $300 million for Turkish company Ulusoy Elektrik; and Citrix shelled out $200 million for intelligent portal company Sapho.

Microsoft logoThere were plenty of big name companies out shopping with no price tag named, Accenture bought a German design agency Kolle Rebbe; Apple bought AI company Silk Labs;  HPE bought big data company Bluedata; Oracle bought Talari Networks; Cisco bought networking company Ensoft; Microsoft bought another AI company, startup XOXCO; Red Hat (recently purchased by IBM) bought storage startup NooBaa; VMware bought Kubernotes startup Heptio; Symantec bought a couple of companies, Appthirty and Javelin Networks; and DXC bought a couple of companies TESM and BusinessNow.

Amazon logoIf that wasn’t enough action for one month, Amazon announced it would be investing $5 billion into its new headquarters in New York City and Arlington Virginia; Marriott announced a data breach that affects 500 million guests; and Facebook also announced a security breach affecting 50 million users!

The job news around the world seems to generally be one favouring the job seeker, with tightening labour markets.  There are of course exceptions and Brexit seems to be taking its toll in the UK.

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 December 2018 tech news in just about a month’s time.

 Until then, Walk Fast and Smile!

Regional Job Market Update for Montreal, Quebec

David O'Brien By David O’Brien,
Vice President, East Region & Government Services at Eagle

Panoramic Photo Montreal city fron Mount RoyalRecent data has shown that both the job market and job growth has slowed in Canada’s largest metropolitan centres, including Montreal. While Central Canada, including Quebec, has led the growth in the last year, with the exception of cities like Kitchener and Ottawa in Ontario and Sherbrooke in Quebec, that growth is slowing slightly.

This past year, Quebec, and specifically Montreal, has very much been a positive employment and jobs story in Canada with consistent unemployment rates below the Canadian average due to a strong economy. Underlying all this is a very significant labour shortage, plus an aging population and over 100,000 estimated positions currently going unfilled. In fact, the recent Quebec Provincial election featured the skills shortage and how to address it as a very prominent issue for all the parties.

Nowhere is this more an issue in Quebec than in the technology sector. There are 250,000 tech jobs in Quebec. In Montreal and Quebec City, the tech sector is the third largest private sector employer, behind traditional companies in Financial Services and Telecom. It is led by exciting companies in Artificial Intelligence and Video Game technology. Provincial subsidy programs have targeted job growth in technology and Quebec’s technology sector has essentially been at full employment for a very long time. Montreal is now recognized as one of the top cities in North America for AI talent.

The last several months, we at Eagle have seen a very strong increase in demand for both permanent and contract resources in our Montreal office and there is an almost acute shortage of candidates for most client requirements. Clients are and will continue to adjust to this new reality by speeding up their hiring processes, having more flexibility in their must-have and desirables requirements, and in working with their staffing partners to be sure their value messages to candidates are fresh and attractive.

Some of the most sought after roles in recent months in Montreal include Project Managers, Developers, Tester/QA roles, System Analysts and Business Analysts.

IT Industry News for September 2018

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

This post first appeared on the Eagle Blog on October 5, 2018

This is my 30,000 foot look at events in the ICT industry for September 2018.

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 …

Blackberry devicesFive 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.

Microsoft logoSeptember 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 Technologies; 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 logoSeptember 2016 saw Tech Data pay $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.

Last year 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.

Which brings us back to the present …

September 2018 saw some big deals and some familiar names … with Adobe’s $4.5 million purchase of Marketo the big deal of the month.  Not a true tech play but Sirius XM paid $3.6 billion for Pandora, and with digital/media/tech convergence it seemed like a fit.  There has been some data centre news lately, largely driven by the growth in cloud computing and Digital Realty is expanding its footprint with the $1.8 billion purchase of Brazil’s Ascenty.  SS&C continues on its acquisition path and growth in the financial services world with the $1.5 billion acquisition of Intralinks.  Vonage paid $300 million for contact centre as a service company NewVoiceMedia; Microsoft was adding to its AI portfolio buying Lobe; Intel bought a startup, NetSpeed to help with its IoT chips; Cognizant added to its Salesforce capabilities with the Advanced Technology Group buy; Infosys also added Salesforce capability in Europe, buying Fluido; and Slack is adding an AI driven email client to its portfolio with the purchase of Astro.

Facebook logoOther companies in the news were Facebook for announcing its first Asian datacenter, to be opened in Singapore; and Verizon for its cost cutting mode, starting with voluntary retirements, but more to come!

Not surprisingly the US economy continues to hum along, with CDG growth rate of 4.2%, strong hiring outlooks and all indicators showing positive.  The only negatives appear to be a growing skills shortage, but that is echoed around the world.  Canada lost jobs in August after a couple of months of growth, and GDP growth is half of the US rate.  The OECD suggests that unemployment rates are steady in OECD countries, and one outlook says 43 of 44 countries are planning to add jobs.

An interesting report from South Korea highlights the growing phenomena of senior citizens working because the social systems are not strong.  We can expect to see more of that here in North America too, because people are living longer, are more active and the extra income will be needed!

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 2018 tech news in just about a month’s time.

 Until then, Walk Fast and Smile!

IT Industry News for July 2018

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

This post first appeared on the Eagle Blog on August 14th, 2018.

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for July 2018. 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, July 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.

Oracle logo a large software company originally noted for its databaseJuly 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.

Microsoft 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 bought 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.

Yahoo logoJuly 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.

Mitel LogoJuly 2017 saw Cincinnati Bell buy Hawaiian Telcom Holdco for $650 million and OnX for $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 and plans to merge Sandvine with Procera Networks.

Which brings us back to the present …

July 2018 was busy in the M&A world, with the biggest deal of the month, a somewhat unlikely $19 billion acquisition of CA Technologies by Broadcom, who are clearly planning to expand beyond the semiconductor world.  Solution provider, Atos is paying $3.45 billion for Syntel, creating a large North American presence.  Fortive is paying $2 billion for physical resource management software company Accruent, and the last billion dollar deal of the month sees SS&C pay $1.45billion 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.

Other companies in the news included Google, who were fined $5 billion by European antitrust regulators and Dell who announced plans to go public again.

The US economy continues to have strong indicators in almost every category, with a growing concern about skills shortages in the tech space.  The Canadian market added jobs, but most of them were public sector jobs and one report shows Canada’s ICT sector as performing poorly versus the other G7 countries.  Employment indicators from most countries around the world were generally positive.

Other topics of interest include, news that the Facebook group of companies have 2.5 billion people using their services at least once a month; the cost of data breaches to Canadian companies is on the rise; and people with Blockchain expertise are among the most in demand resources.

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 2018 industry news in just about a month’s time.

Walk Fast and Smile.

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Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
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IT Industry News for June 2018

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

This post first appeared on the Eagle Blog on July 11th, 2018.

This is my 30,000-foot look at events in the ICT industry for June 2018. 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

Tech NewsFive years ago, 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 of 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 the last 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; and 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; 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.

June 2017 saw Amazon’s purchase of Whole Foods for $13.7 billion. Westcon-Comstar’s American business was being bought by Synnex for approximately $800 million. US fintech provider, Fiserv, purchased British financial services technology firm, Monitise for $88.7 million. Microsoft purchased Israli cloud startup, Cloudyn, for a price between $50 million and $70 million. Rackspace acquired TriCore in an effort to increase their business from customers who want help running their critical applications. Ebix Inc. entered into a joint venture with Essel Group while acquiring a majority stake in ItzCash for $120 million.

Which brings us back to the present

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 company AppNexus. Palo Alto Networks is paying $300 million for Security company Evident.io; PayPal is shelling out $120 million for fraud detection startup Simility; Splunk is paying $120 million for incident management platform company VictorOps; Ribbon Communication is paying $120 million for Edgewater Networks; and Sharp is paying $36 million for Toshibas PC business. Other companies out shopping include Cisco who bought WiFi analytics company July Systems; IBM bought maintenance and repair company Oniqua and Shopify bought app company Return Magic.

Skills shortages were a theme around the world as hiring plans in most countries are positive. Confidence is high in many economies, including Canada’s despite the storm clouds surrounding NAFTA negotiations and the trade war with the US. Speaking of the US, their economy continues to roll along with very favorable indicators almost everywhere.

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 2018 industry news in just about a month’s time.

Walk Fast and Smile.

IT Industry News for May 2018

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

This post first appeared on the Eagle Blog on June 11th, 2018.

Tech News HeaderThis is my 30,000-foot look at events in the ICT industry for May 2018. 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 2013, Yahoo purchased Tumblr for $1.1 billion. The $6.9 billion deal to take BMC Software private however 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.

May 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 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

Which brings us back to the present …

Microsoft logoMay 2018 was a very active month for M&A activity, with Microsoft’s $7.5 Billion purchase of GitHub leading the pack in size.  Microsoft also bought AI company Semantic Machines.  Paypal paid $2.2 Billion for European payments company iZettle; Recruit paid $2.1 Billion for Glassdoor; Investment firm KKR paid $2 Billion for BMC Software; and Office Depot paid $1 Billion for CompuCom.  Other big names out shopping saw Oracle buy collaboration platform Datascience.com; Google bought cloud migration startup Velostrata; HPE bought Plexxi; Rackspace bought RelationEdge;and Splunk bought Phantom Cyber Company.  There were a number of other deals … perhaps too many to mention.

In a display of how careful we need to be online these days, two Canadian banks, BMO and CIBC Simplifi Financial announced online breaches by hackers who were holding them ransom.

On the economic front the US continues its march, posting strong job numbers and many positive indicators. Around the world the job numbers for most countries were generally positive.

Here in Canada Amazon announced an investment in Vancouver that will generate up to 3,000 jobs, employment numbers were little changed from March and GDP growth was relatively weak.

That is my look at the May tech industry news. The full edition will be available soon on the Eagle website. Hope this was useful and I’ll be back with the June 2018 industry news in just about a month’s time… until then, walk fast and smile!——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
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