The Eagle Blog

April ICT Industry News

Every month I put together a little newsletter which highlights activity in the ICT industry. The full newsletter is available on our website, but the following are the highlights of the highlights!

The biggest news in April was likely the Alcatel/Lucent merger which has resulted in the creation of a $25 billion giant in the telecommunications industry and created speculation about more consolidation to come, potentially involving household names! It was also interesting and perhaps another indication of how fast this industry changes to see Computer Science Corp put out the “For Sale” sign. EDS paid $380 million for a 52% stake in an Indian company and announced that it will double its Indian workforce, 28,000, over the next couple of years. Red Hat paid $350 million for JBoss, Oracle paid $220 for Portal Software, CA paid $75 million for Cybermation and Novell paid $72 million for e-Security. There were a number of other deals where price was not disclosed, Microsoft made a couple of acquisitions and so did SAP.

On the general interest front there were a few studies/surveys that showed CIOs anticipate increased IT spending and more hiring, although they are beginning to run up against the skills shortages. It was interesting to read the TPI report that suggests offshoring is not providing the expected savings that people have believed. The US Bureau of Labor tells us that more Americans are employed in IT than even during the dot com boom! We also say goodbye to Scott McNealy who steps aside as CEO of Sun after 22 years.

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