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August Industry News

The following is my introduction to the August Industry News which can be found at Eagle's website. Each month I identify the articles that catch my eye in the technology world and collate them into a "Coles Notes" of technology news for the month. Hope you find it interesting!

August proved to be an interesting month in the technology space. There were a series of studies that looked at worker satisfaction, with seemingly conflicting results. Reports from Hudson and Spherion would suggest IT worker job satisfaction is good, while the Computing Technology Industry Association suggests 60% of IT pros are looking for new jobs and Execunet suggests that more than half of executives are not happy in their jobs! (My anecdotal suggestion would be that results are influenced by what happened this week or month ... and results could swing widely based on how good a day a person is having!) There were also several studies that looked at outsourcing and there was a theme that the Offshore suppliers are doing a good job, getting more competitive and expanding their service offerings. The reports came from DiamondCluster International, Forrester and IDC. I seem to be in sync with the results of a Korn/Ferry study suggesting executives like their crackberries!

There were a number of companies talking layoff, which is not a good thing ... AOL (5,000), Sun (5,000), CA (1,700). Also CSC announced that it will be laying off about 1,800 in North America but hiring about the same number offshore, which should create some interesting press! In more offshore news, SAP is going to invest $1 billion in India over the next 5 years. Google paid $900 million for some exclusive rights with MySpace which is a pretty good indicator of the power of that social networking space! AT&T was hacked and about 19,000 users credit card data may have been compromised ... this is becoming an almost weekly occurrence at some place or other! Boeing abandoned their in-flight internet access program after losing a ton of money in what should have been a promising market ... as opposed to in-flight cellular service which I hope will never see the light of day!

IBM had a busy August with some major acquisitions, ISS for $1.3 Billion, FileNet for $1.6 Billion and MRO Software for $740 million. They also bought Webify for an undisclosed amount. Sandisk paid $1.6 Billion for M-Systems Flash Pioneers in another Billion dollar move for August. The other big deal involved the ceation of the second largest IT services company in Europe when LogicaCMG bought WM-data Nordic for about $1.5 Billion. In the hardware world Brocade bought McData for $713 Million. Alcatel, Corel, Cisco and Compugen were also buying in August.