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June IT Industry News

Every month I take a 30,000 foot look at events in the ICT industry. This is my overview of June's news, with a brief reminder of what was news in June the last couple of years! What you see here is a precis of the monthly report I produce, which will be available at the Eagle website over the next day or two.

June two years ago (2006) saw the merger of Nokia and Siemens to create a $20 billion company and it was also the month Warren Buffet donated $30 Billion to the Gates Foundation! Last year in June (2007) Avaya was bought for $8.2 billion, Ceridian for $5.3 billion and Solectron was bought by Flextronics for $3.6 billion.

June of 2008 sees an economy that is being rocked by high oil prices, the fallout from the sub debt crisis and signs of inflation. The US Conference Board have consumer confidence at record lows and the number of mass layoffs in May was the largest since 2003 ... yet forecasts for the IT industry suggest growth in 2008!

Other studies that caught my eye this month saw an unsettling admission that a third of our system administrators are reading our confidential data, and an even more disturbing look at the growth in online hate sites!

A down economy always has some affect on the M&A markets, making companies a little more cautious in spending their money, and others looking to take advantage of reduced prices! There were a couple of billion dollar deals this month, the Carlyle Group bought the US Government business of Booz Allen Hamilton for $2.54 billion and Cadence made a $1.6 billion offer for Mentor graphics ... but it remains to be seen whether that one flies. Other than the huge deals Nokia paid $410 million to complete its ownership of Symbian; NEC bought Nutcracker for $300 million; Cogeco bought Toronto Hydro Telecom for $200 million; Progress paid $162 million for Iona; Barracuda Networks offered $186 million for Sourcefire and Belden paid $133 million for Trapeze Networks. Other "names" in the M&A market this month included Electronic Arts (with 2 deals), Accenture, Alcatel-Lucent, Deloitte, Microsoft, SAP and Symantic.

That's what caught my eye over the last month, for more details go to the Eagle web site where the full edition will be available over the next couple of days (tomorrow is a holiday in Canada). Have a happy Canada Day (July 1st) and I'll be back with the July IT news in about a month!