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IT Industry News - June 2011

This is my 30,000 foot look at events in the ICT industry for June 2011. 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.

Looking back at this month over the last several years reminds us of some interesting historical tidbits and we can see a comparison of activity levels in this month each year. June 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!  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.  In June 2008 the economy was rocked by high oil prices, the fallout from the sub debt crisis and signs of inflation.  The big deal saw the Carlyle Group buy the US Government business of Booz Allen Hamilton for $2.54 billion.  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.  Two years ago in June 2009 Intel paid $884 million for Wind River Systems and Nokia Siemens took advantage of the fire-sale at Nortel, picking up their CDMA and LTE assets for $650 million.  In June 2010 was a slow month in M&A but Canadian data centre company Fusepoint was snapped up by Savvis for $135 million; Twitter bought SmallThought Systems; and IBM bought Coremetrics.  

Here we are in June 2011 and STILL the world struggles with a “two steps forward, one step back” recovery from the recession.  This month saw some negative sentiment from the US CFO community who are feeling a little less optimistic just now.  Some of the general economic indicators were either down or static, but need to be take in context as it is difficult to maintain a constant upward trajectory month after month.  The real indicators are comparisons with last year and how far we are from “pre-recession’ levels … and while we can’t be complacent, generally the big picture would suggest we are still heading in the right direction.  

There was an interesting report about the slowdown in the sale of PCs and tablets, with Apple being the one exception.  People have changed how they do things, using eReaders and PDAs today to replace some of what used to be the domain of the PC.  Indications are for growth in this market, despite all of that and IDC is also predicting a health increase in technology spending by SMBs for 2011. 

On the M&A front the big deal of the month was Ericsson’s $1.5 Billion purchase of Tecordia, giving Ericsson a bigger North American footprint.  Oracle made a couple of acquisitions, storage vendor Pillar Data and Fatwire Software; Google also made a couple of acquisitions, analytics company PostRank and advertising management company Admeld.  Others of local interest include Montreal based Mxi Security being bought by Imation and (Eagle client) Onx Enterprise Solutions buying a US solutions company Technology Solutions Group. 

Final word for the month sees Sony hit the headlines again, and again for the wrong reasons, with yet another “hack” yielding personal information on 1 million users.

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 2011 industry news in just about a month’s time. 

Walk Fast and Smile