CEO Blog

Category Archives: Canadian Technology Landscape

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

January 2017 Tech News

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for January 2017. 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 Januarys …

Five years ago, in January 2012 things were very quiet in M&A – former tech giant JDSU was back on the acquisition trail, even if just to pick up a small Vancouver based company, Dyaptive Systems.  Symantec paid $115 million for LiveOffice to help with its storage capabilities, Google bought a bunch more IBM patents, and Xerox picked up Laser Networks in the managed printing space.  Rim (now Blackberry) also announced a change in leadership.  Three years ago, in January 2013 Cisco bought mobile network software company Intucell for $475 million and sold its Linksys division to Belkin.  The biggest dollar value deal was AT&T’s purchase of some of Verison Wireless’s airwaves for $1.9 Billion.  Other deals saw NCR buy video software ASTM company uGenius Technology; Canon Canada acquired long-time partner and document management company Oce Canada; NetSuite bought retail management systems company Retail Anywhere; and AVI-SPL bought Duocom-Duologik.  January 2014 was an interesting month with a few big M&A deals.  Google was an especially busy player, selling its Motorola Mobility handset unit to Lenovo for $2.9 billion but paying $3.2 billion for Nest Labs and the company also bought Bitspin.  The other big deal saw VMware pay $1.17 billion for mobile device management company AirWatch.  Other big names on the acquisition trail included Oracle who bought cloud based service delivery company Corente; Microsoft paid a reputed $100 million for cloud based service company (seems to be a theme) Parature; Ricoh purchased IT service company Mindshift from BestBuy; and Hootsuite bought analytics company Yahoo logouberVu. In January 2015, the biggest deal was Hutchison offering more than $14 billion for O2. Other big dollar news saw Yahoo looking like it might be remaking itself, spinning off its $40 Billion stake in Alibaba to become smaller, leaner and either buy or be bought!  The final M&A activity involving a “B” was Telco equipment company Commscope offering $3 billion for TE Connectivities network business.  There were also a number of very well-known companies out buying, and in no particular order … Amazon paid something like $300 million (approximate) for chip designer Annapurna Labs; Expedia bought its online travel competitor Travelocity for $200 million; Samsung paid $100 million for Brazil’s largest print company Simpress; Google paid about $100 million for mobile payments company Softcard; Facebook bought Wit.ai a company that has a Siri like Dropbox logosolution that can be embedded in other products; Dropbox bought CloudOn a document editing and productivity tools company; Twitter paid somewhere between $30 million and $40 million for Zipdial, an Indian company that does some funky marketing thing with phone hang ups; and finally Microsoft made two acquisitions, startup text analytics company Equivo and in a departure from its history it bought open software company Revolution Analytics. There were no huge deals in January 2016, but there was plenty of activity with some of the household names out shopping.  IBM bought video service provider Ustream; Microsoft bought game form learning tool MinecraftEdu; Apple bought “emotion recognition” company Emotient; and Oracle bought media web tracking firm AddThis.  Toshiba bought an ERP solutions company Ignify, and a number of smaller deals included Juniper Networks buying BTISystems Inc.; FireEye bought iSight partners; Acceo Solutions bought Groupe Techna and SmartPrint bought LaserCorp’s Toronto based managed print services business.

Which brings us back to the present…

Cisco logoIn January 2017 the multi-billion-dollar deal of the month was Cisco’s purchase of app performance management company, AppDynamics for $3.7 billion. HP Enterprise purchased data center hardware provider, SimpliVity for $650 million. Microsoft acquired Montreal-based deep learning start-up Maluuba for an undisclosed sum. Google has announced plans to purchase Twitter’s mobile developer platform Fabric. Trello, the startup behind a leading task-management app has been purchased by Atlassian for $425 million. CRM giant, Salesforce bought Unity&Variety to enhance its productivity app service Quip Managed Service Provider of data and database administration, Datavail, acquired Canadian IT channel leader Navantis.

IBM logoSome non-M&A news in January included IBM announcing it broke the US record for number of patents granted in a single year – 8,088 to be exact. Avaya Inc. announced it filed for Chapter 11 bankruptcy protection as a result of accumulating debt from their major acquisitions in the last ten years. According to a report released by Gartner Inc. 2016 saw a decrease in the shipment of PCs, the lowest it has been since 2007.     

That’s my look at the tech news for January 2017.  Until next month, walk fast and smile!

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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?
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Canada’s Job Market @ Year End 2016

Canadian Job MarketGeneral Observations: 

From a jobs perspective 2016 finished much as it started, most markets were okay but not great and the oil and gas space was “hurting”.  The oil patch has been hurt not only by the low price of a barrel, but also by the political uncertainty introduced by both provincial and Federal governments that crushes any investment possibilities from private enterprises.  There has been some positive momentum associated with the upcoming Trump presidency, so we shall see how that plays out in the coming months and years.  The Canadian dollar continues to hover around the 75c US mark which makes it more expensive for imports, and Canada imports more than it exports.

The unemployment rate at the end of the year was 6.9%, a slight improvement over the 7% at the end of September, and even better than the 7.1% of this time last year.  During the previous 12 months Canada added 214,000 jobs although the majority of these were part time jobs.

TSXThe stock market continues to be relatively volatile, but perhaps that is the new norm.  For the purposes of this report I focus on the TSX and it has enjoyed a reasonable period of growth over the last year, ending 2016 at around 15,300 points which was currently at around 15,000 points which was more than 200 points better than it ended last year.

picture of an oil rigAs already mentioned the oil patch continues to take a pounding and we don’t anticipate much positive change before 2018.  With oil settling at around $50 a barrel we are not likely to see the start of any major projects although there is some optimism that most of the “bleeding” is done.  Alberta will not attract much private sector investment in the current political climate, particularly when almost any other jurisdiction outside of Canada is more business friendly.

Canadian dollar the LoonieThe Canadian dollar finished 2016 at around 75c US, as opposed to the 70C US it was a year ago.  A weaker dollar is good for the oil patch because they sell in US dollars and most costs are in Canadian dollars.  It is also helpful to our manufacturing sector, because finished goods exported with a weak dollar mean a better profit margin.  However importing raw materials becomes more expensive and generally Canada imports more than it exports so overall a weak Canadian dollar is not good for Canada.

The banking sector is one of the bigger employers in Canada, and the Canadian banks have fared well this year with their stock prices riding high.  They are also prudent money managers and have been very careful with their hiring.  They take full advantage of technology which can mean a reduction is client facing staff as e-banking continues to grow and  even their technology projects have seen very careful hiring this year,

The telecommunications companies are other big employers in Canada and are also very cost conscious.  While they demand the best talent in order to compete, they too, are also careful about keeping employment costs under control, particularly as they are also acquisitive, which can mean a big focus on integration of acquired companies.  Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce.

The US economy continues to add jobs, but at a reduced rate of about 150,000 per month.  The demand for skills in the US will lure talent from Canada which is good for the individuals but not so good for Canada in the long term.  What has not happened, and is different from previous economic times, is that Canada’s economy has not improved along with US economy, which is one of the indicators of our “new normal” environment.

ConstructionThe construction industry seems to be forever busy, to which anyone trying to get work done will attest.  Despite the slowdown in the big jobs like the oil sands, there appears to be a constant demand caused by infrastructure upgrades in many of our cities and we have the promise of more such work funded by our growing national debt (was that my out loud voice?).

Parliament building in OttawaThe three levels of government in Canada are big employers.  Municipal, provincial and Federal governments employ a lot of people and with the current Federal government it was expected their ranks would grow.  There has been some growth in the Federal payroll, about 40,000 in 2016 but it was expected to be more.  All of these governments are dealing with the issue of a fast retiring upper echelon.  The pensions are so lucrative that large numbers of civil servants are eligible for, and invariably take, retirement at a very early age.  This will create opportunity for new jobs, but will also result in a significant brain drain from our government.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The reading at the end of 2016 was 96, as opposed to 98 a year earlier.  While that appears to be a drop, it is in effect negligible because there were less work days in December 2016 than a year earlier.

Eagle LogoHere at Eagle we experienced a 10% drop in demand from our clients in 2016 as opposed to 2015.  We also experienced a 4% increase in people looking for work.  This really tells the tale of the Canadian economy in 2016, there are less jobs and more people looking.   Eagle’s world is primarily in the technology space, and while we expect things to pick up in 2017 we expect to see skills shortages start to add to Canada’s economic problems.

 More Specifically:

cn tower The GTA is Eagle’s busiest region, representing about 60% of our business.  Not surprising given its boast as the 4th largest city in North America, containing more than 50% of Canadian head offices and with a population of approximately six (6) million.  This market has remained one of the busier markets in Canada, yet has not been as buoyant as previous years, with banks, telcos and provincial government all just a little slower with their hiring.   We anticipate things to pick up in 2017 and demand for skilled resources to increase substantially.

Eagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”.  While there is a better mood amongst the Federal civil service under the Trudeau government, I can’t say that I share their optimism given his focus on anything but job creation.  We do expect a decent level of demand in the Federal government in 2017, with necessary projects requiring expertise and the steady flow (certainly more than a drip) of talent retiring.  Quebec is enjoying its lowest unemployment rate in some time, and Montreal remains the hub of that activity.  We anticipate that to continue in 2017.  The Maritime Provinces continue to struggle to create employment and we don’t expect much change there.

The Saddledome in CalgaryWestern Canada is of course comprised of the oil patch in Alberta and the rest.  Some provinces have fared better than others, with certainly Alberta taking the brunt of the hit because of its resource based employment.  BC was actually the fastest growing province in Canada in 2016, and Saskatchewan has fared better than other provinces with a business friendly government.  The outlook for Alberta in 2017 is better, but not exciting.  The other provinces should see a reasonable increase in jobs.

The Hot Client Demand.

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time.  Program Managers, Project Managers and Business Analysts always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Big data, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting side, we see a consistent need for Financial Analysts, Accountants with designations and public accounting experience plus Controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA.  Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand.  This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

 Summary:

The last year was a tough one in the Canadian economy and we will continue to face challenges into 2017, with carbon taxes, a struggling oil patch, a resurgent but protectionist US economy under Donald Trump and a Federal government more interested in the environment, foreign aid, being recognised on the world stage and anything other than creating a business friendly atmosphere in Canada.

On the plus side for job seekers, there will be growth opportunities afforded by a growing number of retirees requiring replacement, and some sectors that will grow … some which we believe will be the telecommunications, technology, construction, government and the financial sector.

That was my look at the Canadian job market for the final quarter in 2016 and some of its influences.

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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?
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December Tech News

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for December 2016. 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 Decembers …

Five years ago, in December 2011 Ottawa’s March Networks was snapped up by Infinova Canada for $90 million, and Toronto based Rypple was acquired by Salesforce.com!  The BIG deal was SAP’s $3.4 billion purchase of SuccessFactors, who had also announced they were buying Jobs2Web for $110 milion.  It was IBM that was the most active acquirer of the month, paying $440 million for DemandTec, also picking up Emptoris in the procurement world and Irish company Curam Software in the government sector. Oracle logo a large software company originally noted for its databaseFour years ago, in December 2012 there was a fair amount of M&A activity with Oracle making two acquisitions, marketing automation company Eloqua ($871 million) and Dataraker which provides analytics for utilities companies.  The big deal of the month saw Sprint pay $2.2 Billion to take full control of cellular competitor Clearwire.   Montreal based Cogeco paid $635 million for Peer 1 Networks and NCR paid $635 million for retail software and services company Retalix.  In the BYOD space Citrix bought mobile device management company Zenprise for $355 million.  Finally, Redknee added 1200 employees and 130 new clients through the purchase of Nokia Siemens Business Support Network. December 2013 was a slow month, however Oracle pulled off a $1.5 billion buy of marketing software company Responsys; Akamai paid $370 million for cloud-based IBM logosecurity solutions provider Prolexic; JDS Uniphase paid $200 million for enterprise performance management company Network Instruments; IBM bought a “big data” file compression company Aspera and Hitachi expended its solutions capability with the purchase of Calgary based Ideaca.  In other company news Target, although not an IT company, had a major security breach involving details of 40 million debit and credit cards.  December 2014 was not such a slow news month, with the political and technical ramifications of “the Sony hack” causing uproar, some very positive economic indicators out of the US and some big names making acquisitions, albeit not huge deals.  Microsoft made two Microsoft logoacquisitions, the $200 million purchase of mobile email app startup Acompli and mobile development company HockeyApp (which has nothing to do with hockey).  SAP bought travel and expense management company Concur; Intel bought a Montreal based identity management company PasswordBox; Oracle bought digital marketing company Datalogix; Teradata bought data archiving company Rainstor; and MongoDB bought high-scale storage engine company WiredTiger. December 2015 was not a busy M&A month but there was some interesting activity.  The big deal saw Canadian telco Shaw make a big play into the cellular space with its proposed acquisition of Wind for $1.6 billion.  Meanwhile Rogers was also out shopping and growing its Maritimes presence through the acquisition of Internetworking Atlantic Inc.  Other deals in December were not large but did feature some of the big players.  Oracle bought Stackhouse a cloud company with a specialization in “containers”; IBM boosted its video in the cloud capabilities with the purchase of Clearleap; and Microsoft picked up a mobile communications company, Talko.  Other deals saw Ingram Micro buy the Odin Service Automation business from Parallels and in the storage world Carbonite bought Evault from Seagate.

Which brings us back to the present …

December 2016 saw Adecco sell its majority stake in Beeline VMS to GTRC, a private equity firm, for $100 million in cash plus a $30 million note; CRN solution provider SS&C purchased asset service firm Conifer for $88.5 million; solution provider QRX Technology Group acquired IT equipment provider Kerr Norton at the beginning of the month; networking solution provider, Juniper Networks acquired cloud operations management provider AppFormix; Uber bought start-up Geometric Intelligence Inc.; and Shopify acquired Tiny Hearts, a Toronto-based mobile product development studio.

In other news, Yahoo disclosed that one billion accounts were hacked in 2013 making it Yahoo logothe largest data breach recorded in history. To safeguard against hacking attempts on your devices, Check Point Software advises users to make sure they download the latest versions of software as they have discovered new malware that targets devices running outdated software. Cyber attacks and security breaches are also a major concern for IT and business professionals where, according to Symantec, 30% of business surveyed have experienced a hack over the last two years.   GoPro also announced layoffs of up to 15% of its workforce and Amazon delivered its first package by drone!

That’s my look at the tech news for December 2016.  Until next month, walk fast and smile!

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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?
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November Tech News

Technology Industry News - November 2016This is my 30,000 foot look at events in the ICT industry for November 2016. 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 Novembers …

Five years ago in November 2011 Mosaid was sold to Sterling partners for $590 million, ending a WiLan hostile takeover attempt.  Japanese company Rakuten paid $315 million for e-book company Kobo; Huawei technologies bought Symantec out of a storage and Yahoo logosecurity joint venture to the tune of $530 million; Yahoo paid $270 million for online advertising company Interclick; and Best Buy paid $167 million for internet technology company Mindshift.  In November 2012 Cisco made two significant “buys”, cloud infrastructure company Meraki ($1.2B) and cloud datacentre and software company Cloupia ($125M); Dell bought software tools company Gale Technologies; NCR bought retail software company Retalix ($650M); Cray bought software company Appro ($25M); Sprint Nextel bought a chunk of US Cellular ($480M); and Toronto based NexJ (headed by another ex-Andersen Consulting alumni) bought Broadstreet for $8.2 million.   Three years ago in Opentext logoNovember 2013 Opentext paid $1.1 Billion for cloud based integration services company GXS Group and another Canadian deal saw Mitel buy Aastra for close to $400 million.  Other deals this month included ebay’s $800 million purchase of global payments company Braintree; Apple’s $370 million purchase of 3D sensor company PrimeSense; and Akamai’s purchase of Velocius Networks.  November 2014 was an exceptionally quiet month on the M&A front with the largest deal being the merger of two semiconductor companies, Cypress Semiconductor and Spansion to form a $4 billion company; private equity company Carlyle Group paid $700 million for investment bank technology company Dealogic and Yahoo shelled out $640 million for video advertising company BrightRoll.  Last year, November 2015 saw a number of smaller M&A deals, but not much in the way of expediamega-deals.  The only billion-dollar deal saw expedia pay $3.9 billion for HomeAway as a vehicle to better compete with Airbnb.  Zayo Holding Group became the first foreign company to own a Canadian telco after paying $465 million for Allstream.  Other, smaller deals saw Apple buy Faceshift, a motion capture company whose technology was used in the latest Star Wars movie; and Lightspeed POS bought SEOshop, increasing its size as a competitor to Shopify.  Other deals saw Ingram Micro grow its Brazilian presence with the purchase of ACAO; PCM bought Edmonton based services firm Acrodex; Data centre company CentriLogic bought infrastructure company Advanced Knowledge Networks; solution provider Scalar Systems bought another Toronto company, professional services firm Eosensa; and Washington based New Signature bought Toronto based Microsoft Partner, Imason.

Which brings us back to the present …

November 2016 saw some M&A activity, although it was not too busy.  The big deal of the Oracle logo a large software company originally noted for its databasemonth saw Broadcom acquire Brocade Communication Systems in an all-cash transaction of $5.9 billion; Adobe purchased multi-channel programmatic video platform TubeMogul for $540 million; IT services and outsourcing provider Wipro Limited will acquire IT cloud consulting firm Appirio for $500 million; Oracle Corp. has announced its plans to acquire DNS solution provider, Dyn Inc.; SoftwareOne acquired and integrated House of Lync; and Avnet completed an acquisition of Hackster.   In other news, hackers caused some problems for Casino Rama Resort, claiming to have both employee and client information going back a number of years; also Adultfriedfinder exposed 340 million users information.  A Harvey Nash Technology Survey suggests 94% of technology professionals across the world believe a significant part of their job will be automated within ten years, rendering their current skills redundant.

The economic indicators in the US were generally favorable and jobs numbers were quite positive.  Canada’s economy continues the same tepid trend we have seen for quite some time.  Sometimes up a little, sometimes down a little, with unemployment hovering around the 7% mark.

That is my update on tech news for November 2016 … until next month, stay positive, walk fast and smile!

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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?
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October Tech News

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for October 2016. 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 Octobers …

Five years ago in October 2011 an industry icon, Steve Jobs passed away and IBM announced Virginia Rometty as their first female CEO.  On the M&A front Oracle made a couple of buys, including RightNow Technologies ($1.5 Billion) and Endeca Technologies; Sony bought Ericsson out of their Sony Ericsson joint venture ($1.5 Billion); Red Hat bought storage company Gluster ($136 million); and Cisco bought BNI Video ($99 million).  The October 2012 news was dominated by Hurricane Sandy and the US presidential election.   The big deal of the month was a $1.5 billion merger of two US cell EMC logocarriers, T-Mobile and MetroPCS.  There were also a number of smaller deals, with EMC beefing up in the security area (Silver Tail), Telus expanding its medical solutions portfolio (Kinlogix Medical) and Avnet improving its IBM capabilities (BrightStar and BSP).  In the social networking world Yelp bought its European competitor Qype in a $50 million deal.  Three years ago, October 2013 was not a dynamic M&A month, although there was certainly some activity.  Oracle announced two acquisitions, both “cloud based companies: Big Machines provides pricing and quote date for sales and orders; and Compendium is a content marketing company.  Other “names” out shopping included Avaya buying the software division of ITNavigator for its call centre and social media monitoring software; Rackspace bought ZeroVM a tech company with a software solution for the cloud; Intuit bought consulting company Level Up Analytics, primarily to acquire its talent; VMWare bought “desktop as a service” company Desktone; Netsuite bought human capital software company TribeHR; and Telus enhanced its mobile offering with the HP logopurchase of Public Mobile.  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 focused 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 out 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 dell logointernet entity.  Last year 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 Digital 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 converged it was interesting to see Securitas pay $350 million for Diebold’s US Electronic Security business.

Which brings us back to the present …

Just like four years ago October 2016 news has been dominated by the US Presidential election … and of course the upset happened!  Maybe the election is why the M&A market was slow this month?  Not much in the way of deals, with one BIG deal seeing Qualcomm Google signpay $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 … and that was about it for October.

Other news saw Google step into the smartphone world with the release of Pixel, at a time Twitter logowhen wireless use in Canada is more than 50% of telecom revenues, however that is a crowded and hyper-competitive space so it will be interesting to watch.  Twitter announced layoffs plus the fact it will be shutting down the video service Vine.  Lastly HP Inc. also announced layoffs in its plans.

Despite all of the hype and vitriol of the presidential campaign, most indicators that were based on numbers were reasonably positive.  A couple of subjective indices (measuring confidence) were down, but nothing crazy.  There were also numerous reports from IDC and Gartner this month with predictions of growth in many tech sectors including total IT spend, cloud spending, security spending etc.  About the only areas that are trending down are PC sales which is no surprise and smartwatches, which is a surprise.

I would be remiss in my husbandly duties if I did not point out Janis Grantham’s inclusion in the 2016 Global Power 100 — Women in Staffing list.

I also found it surprising that it is five years since Steve Jobs passed away, it just doesn’t seem that long ago.

That is my update on tech news for October 2016 … until next month, stay positive, walk fast and smile!

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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?
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September Tech News

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for September 2016.

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 in September 2011 Broadcom paid $3.7 Billion for NetLogic.  Google was busy, buying restaurant reviewer Google signZagat plus acquiring 1,000 patents from IBM.  Ottawa’s Zarlink was bought by Microsemi for $525 million.  SAP bought Crossgate, Twitter bought Julpan and CSC bought Indian software testing company AppLabs, and Hitachi Data Systems continued the consolidation in the storage industry with the acquisition of BlueArc.  September 2012 was a quiet month in M&A deals.  Infosys increased its management consultancy capability with the $330 million purchase of Lodestone.  Lenovo bought Stoneware, a software company focused on the cloud, and Ericsson bought ConceptWave.  A couple of interesting investment moves saw Microsoft invest in Klout and Silicon Valley VC Chameth Palihapitiya invest in Xtreme Labs. Three years ago in September 2013 Blackberry announced a quarterly loss of almost $1 million and laid off 4,500 people. Microsoft bought Nokia’s devices and services unit for more than $7 billion. Ebay paid $800 million for payment platform Braintree; Synnex bought IBM’s customer care division for $505 million; Rogers added to its data centre capacity with the $161 million purchase of Pivot Data Centres; Extreme Networks bought Entersys Networks for $180 million; and Manitoba Telephone Microsoft logoSystems bought Epic Information Systems.  September 2014 saw some big deals announced, including Microsoft’s $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.  Last year in September 2015 there was a fair bit of M&A activity but no blockbuster deals.  Microsoft was very active, closing three deals, IBM logoAdxstudio which provides web based solutions for Dynamics 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 Technologie; 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.

Which brings us back to the present …

HP new log 2016September 2016 was a slow month for M&A but there were a couple of large deals.  Tech Data paid $2.6 Billion for the technology solutions group of Avnet, 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.

Economic news was generally positive around the world with a few exceptions, Brazil being the most obvious having had 17 straight months of job losses.  The US was, surprisingly to me, fairly positive in most indicators despite the upcoming election and their “interesting” potential presidents.  The Canadian outlook seemed generally positive, of course these reports were prior to announcements of carbon taxes.  The economy certainly doesn’t “feel” positive.

Yahoo logoYahoo had some more bad press, this time for a security breach that happened two years ago affecting 500 million accounts and Blackberry announced that it was getting out of the hardware business.

A couple of studies looking at emerging technologies saw increasing investment in big data analytics and IoT in the manufacturing sector and a suggestion that robots might only replace 6% of jobs in the future.  (I wonder if a robot could become President? Or Prime Minister? OR Premiere?  Pretty sure right now I might vote for them!))

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 2016 tech news in just about a month’s time.

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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?
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August Tech News

Tech News HeaderThis is my 30,000 foot look at events in the Tech industry for August 2016. 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 2011 Hurricane Irene hit the US coast, there was a mini-market crash and the world’s economies continued to struggle.  Google paid $12.5 billion for Motorola Mobility and IBM paid $387 million to add Algorithmics to its analytics portfolio, they also bought UK based analytics company i2.  Skype which was in the process of being merged into Microsoft, bought GroupMe, Bitly bought Twitterfeed and IBM logoCitrix bought Ringcube.  August 2012 was slow in the M&A space with IBM busiest, paying $1.3 billion for HR solutions and services company Kenexa, plus they bought flash memory developer, Texas Memory Systems.  The other “big name” deal was Google’s purchase of social media marketing company Wildfire Interactive, reputedly for $250 million.  Three years ago in August 2013 IBM paid $1 billion for Trusteer, a cybersecurity company specialized in the financial services sector;  Qualcomm sold its fleet management software unit for $800 million to private equity firm Vista Equity Partners; and the other big dollar buy was AOL paying $405 million for online video company Facebook logoAdap.tv.  Facebook bought speech recognition company Mobile Technology; Software AG bought analytics firm Jackbe; Opentext paid $33 million for cloud based software company Cordys; and SAP bought ecommerce company Hybris.  August 2014 saw no blockbuster deals, however a number of big name companies were out with their cheque books.  Intel paid $650 million for the LSI Axxia 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.  Last year in August 2015 there were two billion dollar deals.  Symantec sold Veritas (which it paid $13.5 Billion dollars for 10 years ago) to a group of investors for $8 Billion.  IBM also paid ”big bucks”, shelling out $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.

Which brings us back to the present …

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 one of the larger job boards, Intel logoMonster for $429 million.  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.

Microsoft logoOther acquisitions saw Microsoft snap up two companies, artificial intelligence scheduling software company Genee in addition to their XBox division buying interactive livestreaming company Beam.  Nutanix is buying two companies to bolster its Enterprise Cloud Platform, Calm.io, a DevOps automation company and PernixData, which offers data analytics and acceleration capabilities.   Other smaller deals saw Palantir, an analytics and consulting company buy data visualization startup, Silk; and Magnitude software is buying Vancouver based, data access and analytics company Simba.

Cisco was in the news for more layoffs, announcing 5,500 people, approximately 7% of their workforce, will lose their jobs as the company switches its focus from hardware to software.

Economic indicators around the globe were not too bad, with the US still talking growth, albeit slightly slower than previously expected.  Other markets generally saw positive numbers on employment, except perhaps Mexico and Canada (which lost 31,000 jobs in July).

A number of reports looking at emerging tech markets suggest that IoT, Cloud services and Video as a Service are all areas of growth … and thus possible areas for investment.

Eagle logoThat’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 2016 industry news in just about a month’s time.

Until then, Walk Fast and Smile!

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Kevin Dee is 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?
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July Tech News

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for July 2016. 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 2011 Dell’s move into networking with the purchase of Force10 was possibly the most significant tech deal, with Google (Punchd), Twitter (Backtype) and Adobe (EchoSign) all picking up smaller players to help move their agenda.  Three years ago in July 2012 Marissa Mayer became the new CEO at Yahoo and Dell bought Quest Software for $2.4 billion; Apple picked up Authentec for $356 million and Socialcam acquired Autodesk for $60 million.  Oracle was on a roll, buying (i) the assets of Skire (capital assets and facilities management software), (ii) Involver (a social marketing tools company) and (iii) Xsigo Systems (Network Virtualisation).  Vmware was also busy, picking up Dynamic Ops (virtualisation software) and Nicira (a start-up in the networking software space).  One interesting deal saw Digg bought for $500,000 by Betaworks, when Digg had been valued at $200 million just four years ago. July 2013 was quiet for  M&A Cisco logoactivity but there were some interesting deals, with the big deal involving perennial acquirer Cisco shelling out $2.7 billion for security vendor Sourcefire.  There were some other big names out shopping with EMC buying identity management company Aveska, Intel making an acquisition in Israel (a trend) of Omek a company specialised in the perceptual computing arena.  Apple bought Locationary, a Toronto company that is expected to be involved in improving Apple’s maps for iOS (remember when Apple dropped Google Maps!)  Finally, Ottawa’s Shopify bought a Toronto-based design agency Jet Cooper. Two years ago, July 2014 had a lot of M&A activity but no real blockbuster deals.  blackberryBlackberry bought encryption company Secusmart GmbH; Oracle bought cloud services company TOA Technologies; Twitter bought a startup Madbits, a company that focuses 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 continued 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 shopping.  Microsoft made IBM logotwo 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 which is 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 4 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.

Which brings us back to the present …

July 2016 saw some large deals, with Verizon making two multi-billion dollar acquisitions.  verizonThe 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 billion dollar club was security vendor Avast, who bought AVG for $1.3 billion.  Other deals this month 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.

Oracle logo a large software company originally noted for its databaseOther companies in the news in July were Microsoft for their continuing layoffs associated with their Nokia purchase and Facebook’s internet drone program reached a milestone with its first flight.  Oracle also lost a $3 billion lawsuit to HPE going back to a 2011 decision to not support HP Itanium servers.

Things are slow here in Canada, and the US continues to create jobs and show positive signs.

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 2016 industry news in just about a month’s time.

Walk Fast and Smile.

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Kevin Dee is 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?
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June Tech News

Tech News HeaderThis is my 30,000 foot look at events in the tech industry for June 2016. 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 2011 the big deal of the month was Ericsson’s $1.5 Billion purchase of Tecordia; Oracle made a couple of acquisitions (storage vendor Pillar Data and Google signFatwire Software); Google also made a couple of acquisitions, (analytics company PostRank and advertising management company Admeld).  In June 2012 Microsoft’s $1.2 billion purchase of Yammer was the big deal of the month.  Salesforce paid $689 million for Buddy Media; Google reputedly paid $100 million for Meebo; Facebook bought facial recognition company Face.com; and Oracle bought “social intelligence” company Collective Intellect.  Another “buy” of interest to us at Eagle was the reputedly 7 figure purchase of Bullhorn by Vista Equity Partners (Bullhorn is Eagle’s front office software). Salesforce logoThree years ago, in June 2013 saw Salesforce.com’s $2.5 billion purchase of marketing technology company ExactTarget as the big buy of the month.  Other acquisitions saw Irish mobile company Three pay $780 million for O2 Ireland; SanDisk paid $307 million for SMART Storage Systems; Cisco bought Composite Software for $180 million; IBM bought cloud company SoftLayer Technologies; and Buytopia.ca has been on a spree with six acquisitions in the last year.  June 2014 saw some significant deals announced with Oracle’s paying $5 billion for Micros Systems; Sandisk paid $1.1 billion for solid state storage company Fusion-io.  Google continues 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 that will enhance the Google Maps capability. Twitter paid $100 million for mobile marketing Intel logoplatform Tap Commerce and Red Hat is paid $95 million for eNovance.  Last year June 2015 saw Intel pay $16.7 Billion for semiconductor company Altera Corp.  Cisco paid $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.

Which brings us back to the present …

LinkedIn LogoJune 2016 was certainly an interesting month, with the Brexit vote upsetting the markets and causing uncertainty that will likely continue for some time yet; plus there was plenty of M&A activity.  The big deal was undoubtedly the Microsoft purchase of LinkedIn for a whopping $26 billion.  There were other billion dollar deals this month too, Salesforce paid $2.8 billion for e-commerce platform maker Demandware and Amazon announced an extra $3 billion investment in its India operations.  Other significant deals saw Daetwyler Holdings AG pay 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 deals saw an investment group buy 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.

The US economic news was less buoyant, but they still added 170,000 new jobs and all indicators are relatively positive … just not as positive as the past couple of years.  Canada continues to show little sign of booming, but that is likely expected given our dependence on a hurting resource sector and the ambivalence of our governments to provide any help to that sector.

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 2016 industry news in just about a month’s time.

Walk Fast and Smile.

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Kevin Dee is 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?
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May Tech News

Tech News HeaderThis is my 30,000 foot look at events in the tech industry for May 2016. 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 2011 the biggest news was Microsoft’s record breaking offer of $8.5 Billion for Skype.  Other M&A activity included Nvidia paying $367M for Icera; Rambus buying Cryptography Research for $342M in the security space; Sandisk acquiring Pliant Technology in the storage world for $327M; and Twitter paying $40M for TweetDeck.  Facebook logoIn May 2012 Facebook went public and there was a fair amount of M&A activity.  The largest deal saw SAP’s $4.3 Billion acquisition of Ariba with CGI’s $2.8 Billion acquisition of Logica PLC of particular interest to those of us here in Canada!  EMC continued its pattern of acquisitions with the $430 million purchase of XtremIO: perennial acquirer Oracle paid $300 million for social media marketing firm Vitrue; in the storage space Seagate paid $186 million for a controlling interest in LaCie; Microsoft invested $300 million in a Barnes & Noble subsidiary; and LinkedIn paid $118 million for Slideshare.  There was plenty more activity, but with the amounts not published.  Twitter bought RestEngine; IBM bought customer analytics company Tealeaf Technology; VMware bought Wanova; and Cisco Yahoo logobought Truvisco.  The big news three years ago in May 2013 was Yahoo’s $1.1 billion purchase of Tumblr.  The $6.9 billion deal to take BMC Software private did not cause the same kind of splash … the power of the brand?  Manitoba Tel decided to shed its Allstream division to a holding company for $520 million; McAfee paid $389 million for Finnish security firm Stonesoft; Dell added to its cloud capabilities with the purchase of Estratius; AVG bought PrivacyChoice; and Ottawa based N-Able Technologies became one more Canadian company to be bought by a larger US company, this time Solarwinds for $120 million.  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 SAPbought Youtube video network FullScreen; and SAP bought behavioral target marketing company SeeWhy.  Last year May 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.

Which brings us back to the present …

CSC logoMay 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 itOther companies in the news included Apple who invested $1 billion into the Chinese “Uber” called Didi Chuxing; and Microsoft announced another 1,850 job cuts related to its mobile phone business.

One security report out of the UK suggests that two thirds of large businesses have suffered cyber attacks; another IDC report suggests the big data and analytics market will expand by 50% over the next 4 years; and a Gallup report tells us that millennials are changing jobs faster than any other cohort.

Economic data continues to show a Canadian economy that is limping along and a US economy that continues to grow (another 165,000 new jobs last month).  Other countries with positive news included the UK, Ireland, Germany and, New Zealand.  China also reported that demand exceeds supply for its labour force.  The Caribbean and Latin America are however predicting increased unemployment.

That is my look at the May tech news.  The full edition will be available soon on the Eagle website.  Hope this was useful and I’ll be back with the June 2016 industry news in just about a month’s time… until then, walk fast and smile!

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Kevin Dee is 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?
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