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Category Archives: Business

All blog posts by Kevin Dee, Chairman at Eagle — Canada’s premier staffing agency, related to business.

October Tech News

Tech News HeaderThis is my 30,000-foot look at events in the ICT industry for October 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 October in previous years …

Five years ago, in October 2014, we saw a new trend, with two public companies both choosing to split into smaller entities.  HP announced it was creating a business service-HP logofocused Hewlett-Packard Enterprise and personal computing & printer company HP Inc.  Symantec also chose to split into two independent public companies, one focused on business and consumer security products, the other on its information management portfolio.  Other interesting news saw IBM pay $1.5 billion to GlobalFoundries so it would take away its money losing semiconductor manufacturing business.  NEST bought competitor Revolv; EMC bought three cloud companies: The Cloudscaling Group, Maginatics and Spanning Cloud Apps; and in Korea, Kakao and Daum merged to form a $2.9 billion internet entity.

October 2015 brought some big deals with the biggest seeing Dell offer $26 billion to buy storage company EMC.  Interestingly an EMC subsidiary, VMWare, was also out shopping, picking up a small email startup, Boxer.  In another deal involving “big bucks”, Western dell logoDigital paid $19 billion for storage competitor Sandisk.  IBM were also writing a big cheque, paying $2 billion in a big data/internet of things play for The Weather Network (minus the TV operations), and IBM also picked up a storage company, Cleversafe.  Cisco paid $522.5 million for cybersecurity firm Lancope; LogMeIn paid $110 million for LastPass; Trend Micro paid $350 million for next generation intrusion prevention systems company HP Tippingpoint; Red Hat picked up deployment task execution and automation company Ansible; Vasco Data Security paid $85 million for solution provider Silanis; and Apple bought a speech processing startup, VocalIQ.  As industries converge it was interesting to see Securitas pay $350 million for Diebold’s US Electronic Security business.

Three years ago, in October 2016, there was not a lot of M&A action but Qualcomm paid $47 billion for NXP Semiconductor.  The only other sizable deal saw Wipro pay $500 million for IT cloud consulting company Appirio.  Google picked up Toronto-based video marketing startup FameBit and Pivot Technology Solutions picked up Ottawa based Teramach.

Cisco logoIn October 2017, Cisco paid $1.9 billion for Broadsoft to improve Cisco’s software capabilities.  The only other significant deal saw Telus beef up its service provider capability with a $250 million purchase of Xavient.

Last year, October 2018 was an interesting month, with some significant M&A activity and the sad passing of yet another tech pioneer, Paul Allen, who co-founded Microsoft with Bill IBM logoGates.  On the M&A front, IBM paid $34 billion for Red Hat to increase its game in the cloud systems arena.  In the red hot cybersecurity space PE company, Thoma Bravo paid $2.1 billion for Imperva.  Twillio also shelled out $2 billion to acquire email company SendGrid rounding out their API offerings. Other deals saw Honeywell bolster its IoT offerings, paying $493 million for Transnorm; Palo Alto Networks is paying $173 million for security startup Redlock; Computacentre paid $70 million for FusionStorm to grow its consulting business in North America; GTT Communications paid $40 million for Access Point to add to its network; and Fortinet paid $18 million for ZoneFox to improve its threat analytics capability.  There was plenty more M&A activity with big names involved.  Some of them included: Google (chatbot company Onwards); Accenture (DAZ systems); DXC (agodesign); Samsung (Zhilabs); CapGemini (June 21); and NTT Data (Sierra Systems).

Which brings us back to the present …

There was plenty of activity in October 2019The economy, while slowing down some, is still quite robust in the US and employment figures around the world are generally positive.  Reports continue to suggest things will weaken in 2020 but the threat of a recession seems reduced, always bearing in mind that the ongoing trade wars are not helping.

There were numerous reports of the skills shortage, in the US and elsewhere in the world.  Couple that with a report suggesting that tech jobs are going to become even more in demand there is a need to guide more students towards tech.

On the M&A side, activity was brisk with the largest deal happening in the robust data Intel logocenter space, Digital Realty paying $8.4 billion for Interxion.  There was also a smaller data centre deal that saw Equinix pay $175 million for 3 data centres from Axtel; and another datacenter deal involving ServerFarm buying SNINES.  Another big dollar deal saw private equity company Thoma Bravo offer $3.4billion for security platform company Sophos.  Big name companies out shopping included Intel buying Pivotal’s Edge Computing platform; Accenture bought Bow & Arrow, a company that helps its clients find new markets;  Microsoft bought Mover, a  company that helps clients move to the cloud; and Telus is paying $700 million for ADT’s Canadian Security Services business.  Some other deals included network company Cienna buying performance and analytics form Centina; Sailpoint paying $37.5 million for two cloud security startups; Tech Data buying DLT Systems; and Trend Micro buying security company Cloud Conformity.

Microsoft logoOther companies making news include Microsoft, who are grappling with an activist employee base contesting their government work; HP Inc. who announced significant layoffs; and Oracle who are going to be on a hiring binge.

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 November 2019 industry news in just about a month’s time.

Walk Fast and Smile

——————————————————————————————————————————
Kevin Dee is the founder 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 ——————————————————————————————————————————

September Tech News

Tech News HeaderThis is my 30,000-foot look at events in the ICT industry for September 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 September in previous years …

Five years ago, September 2014 saw some big deals announced, including Microsoft’s Microsoft logo$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.

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 ACCENTURE LOGODynamics 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.

September 2016 saw Tech Data pay $2.6 billion for the technology solutions group of HP logoAvnet, 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.

Two years ago 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. 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.

Last year, there were some big deals in September 2018.  Adobe’s $4.5 million purchase of Marketo was 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.  Digital Realty is expanding its data centre footprint with the $1.8 billion purchase of Brazil’s Ascenty.  SS&C paid $1.5 billion for Intralinks.  Vonage paid $300 million for contact centre as a service company NewVoiceMedia; Microsoft added to its AI portfolio, buying Lobe; Intel bought a startup, NetSpeed to help with its IoT chips; Cognizant added to its Salesforce capabilities, buying Advanced Technology Group; Infosys also added Salesforce capability in Europe, buying Fluido; and Slack added an AI driven email client to its portfolio with the purchase of Astro.

Which brings us back to the present …

September 2019 was relatively busy in M&A with Qualcomm’s $3.1 billion acquisition of TDK’s share in a RF joint venture, the largest deal of the month.  There were some big Facebook logonames out shopping in September, with Microsoft buying cloud migration company Movere; Facebook bought Wearables company Ctrl-labs (reputedly for big dollars); HP bought endpoint security company Bromium; Western Digital bought Kazan Networks; and Github bought developer tool Semmie.  Commvault paid $225 million for cloud software company Hevig and there were a few more smaller deals.

Other companies in the news included YouTube who reached a $170 million settlement related to protection and privacy for children; Kik interactive shut down its messaging service; and DoorDash became the latest cyber breach casualty.

The jobs numbers were optimistic in Canada, and the US also had good jobs news although the ongoing trade war and potential impeachment have put a negative spin on some of the reports coming out.

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 2019 industry news in just about a month’s time.

Walk Fast and Smile

——————————————————————————————————————————
Kevin Dee is the founder 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 ——————————————————————————————————————————

August Tech News

Tech News HeaderThis is my 30,000-foot look at events in the ICT industry for August 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 August in previous years …

Five years ago, in August 2014, there were no blockbuster deals, however a number of big name companies were out with their cheque books.  Intel paid $650 million for the LSI Intel logoAxxia networking chip business; VMware bought application delivery provider CloudVolumes; IBM bought Lighthouse Security Group to bolster its cloud-based identity and access management capabilities; Google bought two startups, Emu to boost its messaging capabilities and Directr for its video advertising business; Facebook bought a security startup Privatecore, and the last BIG name saw Yahoo buying app company Zofari.

In August 2015, there were two “billion dollar” deals.  Symantec sold Veritas (which it paid $13.5 billion dollars for 10 years prior) to a group of investors for $8 billion and IBM shelled IBM logoout $1 billion for Merge Healthcare.  Smaller deals saw Calgary based Above Security bought by Hitachi; Transcomos bought 30% of Vietnamese daily deals site Hotdeal; Freshdesk bought live-chat company 1Click; and PLDT bought ecommerce startup Paywhere.

Three years ago, August 2016 saw a fair bit of M&A activity although there were no billion-dollar deals.   The largest deal saw global staffing company Randstad buy Monster for $429 The apple logo and apple with a bite out of itmillion.  A similar sized deal saw Intel shell out $408 million for artificial intelligence company Nervana.  Hewlett Packard Enterprises paid $275 million for SGI (what was left of Silicon Graphics); Apple paid $200 million for artificial intelligence company (there is a pattern here), Turi; Salesforce bought business analytics company Beyondcore for $100 million; and ScanSource paid $83.6 million for telecom cloud services company Intelisys Communications.  Other acquisitions saw Microsoft snap up two companies: artificial intelligence scheduling software company Genee, in addition to their XBox division buying interactive livestreaming company Beam.

August 2017 was relatively slow on the M&A front.  Symantec sold its website security Cisco logobusiness to DigiCert for $1 billion, plus a stake in the larger entity.  Cisco paid $320 million for hyperconvergence company Springpath, CGI bought a Pittsburgh consulting company, Summa Technologies and Accenture bought a Toronto consulting company VERAX.  While not a pure tech play, the biotech world saw Aclaris pay $100million for Confluence.

Last year, August 2018 saw a fair amount of M&A activity: a lot of smaller deals, a few significant moves and some recognizable names were out buying companies.   The big deal of HP logothe month saw Cisco pay $2.35 billion for access security company Duo Security.  In other deals, VMWare paid $500 million for cloud management company CloudHealth; and HP splashed out $500 million for Europe’s largest print provider, Apogee.  Apple snapped up Augmented reality startup Akonia; Accenture made two small acquisitions in the digital space, Mindtribe and Pillar Technology; Intel picked up a small AI company Vertex.Ai and Vonage paid $35 million for video company TokBox.  Apple was also in the news because it became the first public company to reach a $1 trillion valuation, and they were quickly followed by Amazon.

Which brings us back to the present …

August 2019 was a busy month in M&A, with the big deal getting mixed reviews as Broadcom paid $10.7 billion for Symantec’s security unit.  Some saw this as old tech buying old tech, but for Broadcom it provides diversity of offering.  VMWare had a busy month paying $4.8 billion to acquire Carbon Black and Pivotal, and then announcing the acquisition of Intrinsic.  Private equity company BC Partners is paying $2.1 billion to take Presidio private, and Salesforce paid $1.35 billion for ClickSoftware to improve its service capability.  The final deal in the BIG dollar leagues saw Splunk pay $1.05 billion for cloud monitoring platform SignalFxAccenture was busy this month, announcing two acquisitions; Northstream, a telecom consulting company plus engineering company, Fairways Technologies.  DXC spin-off Perspecta paid $250 million for managed services company Knight Point and there were a number of other “big name” companies making acquisitions; Amazon bought E8 Storage; Cisco bought Voicea; Microsoft bought JClarity; Twitter bought Lightwell and HPE bought the assets of MapR.

Other companies in the news included Apple, who, responding to concerns about their Siri recordings, laid off hundreds of workers who used to work with this “data”.  Google announced it is closing its Google Hire offering and Cisco announced layoffs in California.

There were several interesting stories this month related to cyber security and various scams.  The underlying message to individuals and organizations being that training, tools and vigilance are needed to combat the “bad actors”.

Major economic indicators in the US were generally positive, although economists have started wondering when the next recession swill hit, 2020 or 2021.  Canada had mixed job numbers depending upon who you believe and job indicators across the world were generally positive, although Germany’s economy is struggling and the UK continues to deal with the Brexit debacle.

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 September 2019 industry news in just about a month’s time.

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 ——————————————————————————————————————————

July Tech News

Tech News HeaderThis is my 30,000-foot look at events in the ICT industry for July 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 July in previous years …

Five years ago, in July 2014, there was plenty of M&A activity but no real blockbuster deals.  BlackBerry bought encryption company Secusmart GmbH; Oracle bought cloud services Oracle logo a large software company originally noted for its databasecompany TOA Technologies; Twitter bought a startup Madbits, a company that focusing 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.

July 2015 saw no billion-dollar deals, but there was some activity with some big names out Microsoft logoshopping.  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, 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.

In July 2016 Verizon made 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 2016 billion dollar club was security vendor Avast, who bought AVG for $1.3 billion. Other deals 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.

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

Last year July 2018 was a busy M&A month with the biggest deal of the month, a somewhat unlikely $19 billion acquisition of CA Technologies by Broadcom.  Solution provider, Atos paid $3.45 billion for Syntel, creating a large North American presence.  Fortive paid $2 billion for physical resource management software company Accruent, and the last billion dollar deal of the month saw SS&C pay $1.45 billion 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.

Which brings us back to the present …

July is quite often a slower news month, and July 2019 was a little like that.  Having said Cisco logothat, there were some big deals announced.  Cisco’s $2.6 billion acquisition of Acacia Communications was the biggest deal. Apple splashed $1 billion to buy Intel’s smartphone modem business, and KKR bought Corel for $1 billion too.  There were a few more deals hit my radar with Google buying storage company Elastifile; 8X8 cloud communications company paying $100 million for Platform as a service company Wavecell; and finally Epam Systems bought educational content company Competentum.

There was another big cyber breach announced with Capital One sharing data on more than 100 million customers.  There was also a malware called “Agent Smith” that infected 25 million Android devices.  A report on how AI will impact on jobs seemed significant, but most of the respondents believe new roles will replace the lost jobs.

On the economic front the current US economic expansion is the longest on record, and there are still lots of positive indicators.  Canada lost jobs in June and continues to have struggles.  Around the world most indicators were positive, with a few notable exceptions … South Africa caught the eye with the highest jobless rate since 2003.

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 2019 industry news in just about a month’s time.

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 ——————————————————————————————————————————

June Tech News

Tech News HeaderThis is my 30,000-foot look at events in the ICT industry for June 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 June in previous years 

Five years ago, in June 2014, Oracle paid $5 billion for Micros Systems; Sandisk paid $1.1 Oracle logo a large software company originally noted for its databasebillion for solid state storage company Fusion-io. 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 Intel logo$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.

Three years ago, June 2016 saw Microsoft buy LinkedIn for a whopping $2.6 billion. There were other billion dollar deals that month too: Salesforce paid $2.8 billion for e-commerce Microsoft logoplatform 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 Amazon logoAmerican business bought by Synnex for approximately $800 million. US fintech provider, Fiserv purchased British financial services technology firm, Monitise for $88.7 million. Microsoft purchased Israeli cloud startup, Cloudyn, for a price between $50 million and $70 million. Rackspace bought TriCore in an effort to increase Rackspace’s business from customers who want help running their critical applications.

Last year, 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 IBM logocompany AppNexus. Palo Alto Networks paid $300 million for security company Evident.io; PayPal shelled out $120 million for fraud detection startup Simility; Splunk paid $120 million for incident management platform company VictorOps; Ribbon Communication paid $120 million for Edgewater Networks; and Sharp shelled out $36 million for Toshiba’s PC business. Other companies out shopping included Cisco, who bought WiFi analytics company July Systems; IBM bought maintenance and repair company Oniqua and Shopify bought app company Return Magic.

Which brings us back to the present

June 2019 saw some significant M&A deals with the Salesforce acquisition of Tableau for Salesforce logo$15.7 billion, the largest deal of the month. Infinion Technologies paid $10 billion for Cypress Semiconductor; Google paid $2.6 billion for data analytics company Looker; Capgemini shelled out $3.6 billion for engineering company Altran and in the robotics world, Blue Prism paid $100 million for Thoughtonomy. Other companies with smaller buys included Apple picking up the assets of Drive.ai and Twitter buying machine learning startup Fabula AI.

The Canadian Federal Government invested $5 million into an innovation centre in Markham, which is a trend we are seeing more often. There was also more news about CyberSecurity breaches, with suggestions of state sponsored hackers focusing on telecommunication companies.

canadian flagIn Canada, the job numbers are interesting, with Statistics Canada suggesting May was a bumper month, and ADP suggesting we actually lost jobs. The methods of data gathering differ so it will be interesting see how it works out over time.

The US had some mixed reports regarding the economy but overall the story is still positive, with some reports focusing on the growth being not as great as it was… still growth! Generally, indicators in the US economy are positive. Likewise, indicators on jobs and employment around the world are also positive.

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 2019 industry news in just about a month’s time.

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 ——————————————————————————————————————————

May Tech News

Tech News HeaderThis is my 30,000-foot look at events in the Tech space for May 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 May in previous years …

Five years ago, 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.

Microsoft logoLast year May 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.

Which brings us back to the present …

The big deal in May 2019 saw HPE pay $1.3 billion for supercomputer manufacturer Cray (Exactly 3 years after starting, by merging with CSC). Palo Alto Networks continued growing its cybersecurity capability with the purchase of two companies, Twistlock and PureSec.  There was some M&A activity among a number of well know companies, Amazon bought mesh network company Eero; Symantec bought Luminate Security; Rogers bolstered its podcast capability with the purchase of Pacific Content; NCR added to its point of sale depth, buying Texas POS; and Foursquare bought competitor location tech company, Placed; ServiceNow picked up the assets of mobile analytics company Appsee; Comcast bought WiFi company Deep Blue Communications.

Cybersecurity continues to be topical, with an Accenture report highlighting the increasing cost to companies for cybercrime; a Proofpoint report also highlighted the sheer volume of attacks on Canadian businesses.

Other news saw some Canadian cities receiving Federal taxpayer money to improve their SmartCity initiative, with Montreal winning the big money, $50 million.  There has been a lot of news on 5G, particularly concerns around Chinese company Huawei, but china is rolling out the first national 5G network … perhaps their answer to supporting that company?

A look around the world at employment numbers and economic indicators suggests that generally employment numbers are improving, with a few exceptions.  Brexit continues to plague the UK, and inhibit business.  It was also interesting see that Germany unemployment numbers worsened in May, for the first time in 5 years, albeit a tiny change from 4.9% unemployment to 5%.  The US added 275,000 jobs in April and their GDP grew at an annual rate of 3.1%, continuing their strong economic growth, the longest expansion in US history.  Canada showed an increase of 106,500 jobs in April (61,000 if you prefer the ADP numbers) which is excellent growth.  GDP growth however remains anemic at an annual rate of 0.4%.

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 2019 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 ——————————————————————————————————————————

April Tech News

Tech News HeaderThis 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.

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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 ——————————————————————————————————————————

March Tech News

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! ——————————————————————————————————————————

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? ——————————————————————————————————————————

Canada Job Market Update March 2019

Here’s a look at Canada’s job market, specifically for IT, as we finish up the first quarter of 2019.

TSXThere are a number of indicators that I have used over the years to give an idea of how things are going, one such indicator is the markets.  For this purpose I focus on the TSX.  The markets have been fairly volatile for some time now, but The TSX was sitting at 16,000 at time of writing.  This is not that different from this time a year ago, although we have seen some wide swings during that time.  The relative stability of the economy here is always a good factor when looking for employment.

Parliament building in OttawaObviously the unemployment rate is a decent indicator and at 5.8%, the job situation is fairly positive.  This indicator would also suggest unemployment in the skilled, in demand professions is probably 50% of that number … which at less than 3% is effectively full employment.  Canada has created 370,000 jobs (270,000 full time) in the last twelve months, which is not at the pace of the US, but is still a healthy growth, particularly since 270,000 of those were full time jobs.  In a tale of two provinces Ontario has seen the strongest growth in employment in the last few months, whereas Alberta has struggled and has an unemployment rate of 7.3% primarily due to a hurting oil patch.

canadian flagSome stats worth noting when looking at the job situation in Canada; the biggest 4 provinces represent close to 90% of employment in Canada, with Ontario the largest (close to 40%); Quebec (approx. 23%); BC (13.5%) and Alberta (12.5%).  BC has the lowest unemployment rate in Canada (4.5%), with Newfoundland & Labrador the highest (11.8%); Quebec and Manitoba enjoy good unemployment rates (5.3%); Ontario has a respectable 5.7% rate.  So, when considering where to look for jobs a province that employs a lot of people and has a relatively low unemployment rate is a good place to look … BC, Quebec and Ontario all fit that bill.

oil rigsOne of the big factors affecting the Alberta market is the price of oil.   The price of a barrel in Canada is probably $10 a barrel less than on the world market, given our only customer is the United States.  Until there is a clear change that will likely remain a factor in Alberta’s economy.  The current price in Canada of less than $60 a barrel, coupled with the barriers presented by the Federal Government and other governments means that investment in the Canadian oil industry is significantly reduced which would suggest it will be some time before we see a boom in employment in that sector.  Having said that there are still opportunities in Alberta, just not the booming demand we saw in the past.

The continued growth in the US market has led to skills shortages, and significant cost increases for companies with large workforces.  This has created an opportunity in Canada, where large US companies like Amazon, Facebook, Google etc. are adding to their Canadian presence to tap into the talent up here.  We have seen big announcements in Vancouver, Calgary, Montreal and Toronto in recent months and I expect this trend to continue.

cn towerIf there is one market to highlight it is the Toronto area, which is Canada’s largest market, the fourth largest city in North America and home to more head offices than any other city in Canada.  The financial sector is largely headquartered here and is a huge employer, as is the telecommunications industry.  The GTA represents 60% of Eagle’s business and probably 60% of tech jobs in Canada.

Depiction of a connected worldTech job activity is relatively strong in most markets across Canada.  Even Calgary, which has not returned to pre-oil crisis levels of activity is seeing some demand.  This makes sense if you recognize that even at a 7.3% unemployment rate that probably represents a less than 4% unemployment among professionals and in-demand skills.

Eagle LogoEagle’s focus is technology professionals and the most in demand areas/skills recently have included: Cloud, Healthcare, Government, Telecom, Banking, CRM, BI and AI; Project Managers, Business Analysts, Change Management, Quality Assurance, Architects, Sys Admins, Full Stack developers, Database Admins & Dev Ops engineers.

In summary, people with tech skills should have little difficulty in finding employment, either contract or perm for the foreseeable future.  A willingness to relocate to the bigger centers will only increase their marketability.

There is continued concern about an economic slowdown, which will of course affect hiring.  In the short to medium term I don’t expect a big change in the job market.  Perhaps as the election approaches in the fall we will see some impact.

Our advice to clients is to ensure there are clear, clean hiring practices that move quickly through the hiring process.  It is a candidate market again and that means the best talent is snapped up quickly, often with multiple offers.

February Tech News

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 year’s Februarys …

Five years ago, in February 2014 Facebook make 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, as it reinvents itself, and Apple picked up an AI startup company RealFace.    Another company in the news, but for the wrong reasons was Samsung which is 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 logoOther 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! ——————————————————————————————————————————
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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