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 Tech News

Tech News HeaderThis is my 30,000 foot look at events in the Tech industry for January 2018. 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 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 uberVu. Three Yahoo logoyears ago 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 solution 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 IBM logoJanuary 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.  Last Cisco logoyear, in  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 announced plans to purchase Twitter’s mobile developer platform Fabric. Trello, the startup behind a leading task-management app was 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.

Which brings us back to the present…

Amazon logoJanuary 2018 saw the continuing saga of cities bidding to win Amazon’s second headquarters, now down to 20 finalists.  The Meltdown and Spectre hardware bugs are causing major headaches for tech companies and their clients, with the potential for hackers to take advantage.

On the M&A front the big deal saw investment management software company SS&C pay $5.4 billion for financial services software company DST Systems.  Amazon Web Services increased its cybersecurity protection capabilities through the purchase of Sqrrl.  ADP bought gig economy tool WorkMarket and TD Bank bought a Canadian AI company Layer 6.

The economy is getting “interesting”.  After some good indicators in 2017 Canada lost 88,000 jobs in January.  It is likely that new labor legislation introducing tougher labor laws and increased minimum wages in Ontario and Alberta were factors.  The US numbers are still looking good adding another 234,000 jobs in January, Global CEO confidence is up and indicators around the world still seem positive.  A stock market correction in mid-January is however causing some concern.

That has been my look at the tech news for January … 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 – Fourth Quarter of 2017

Canadian Job MarketGeneral Observations:

The unemployment rate at the end December was 5.7%.  This was the lowest rate in forty (40) years, and a significant improvement over September when it was 6.2%.  During the previous 12 months, Canada added a very strong 422,500 jobs of which 394,200 were permanent full time jobs.

As just one indicator of the markets, and for the purposes of this report I focus on the TSX which showed strong growth during Q4, ending with a reading of 16,200 which was an improvement of 600 points from the end of Q3.

The price of a barrel of oil saw a little resurgence in the final quarter of 2017 reaching heights it hadn’t seen for a few years now.  It remains to be seen whether a price near the $65 range is sustainable, or the result of some OPEC activity but some companies are reacting positively.

The Canadian dollar continued to operate in the 80c US range, which was very similar to Q3.  This was positive given how well the US economy has been performing.

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 latest reading Q4 was close to its high, at 123.  This was a big jump from its Q3 reading of 109 and a reading of 116 in Q4 of last year.

Eagle logoHere at Eagle, demand was about as expected in Q4 which includes the holiday season.  Client demand dipped about 15% and was very similar to demand in Q4 of last year.  The number of job applicants was up more than 20% from Q4 of a year ago, and very similar to last quarter when we would have expected a seasonal dip.

Some of the sectors with big talent demands.

Piggy Bank accepting moneyThe financial sector is a huge employer in Canada and top talent is always in demand.  Technology is a huge part of their ecosystem and they invest in leading-edge technologies to gain competitive advantage and to improve productivity.  The banks have been leaders in automation (ATMs etc) and invest in AI, technology incubators and all of the latest innovations.  There will continue to be a demand in their technology shops into the foreseeable future.

Like the banks, the telcos are big believers in technology and invest heavily.  They have large technology groups and are always looking for ways to differentiate and gain competitive advantage through the use of technology.  While they demand the best talent in order to compete, they 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, and with the recently introduced tax changes we can anticipate more investment and an even bigger appetite for talent.  The demand for skills in the US coupled with Canada’s increased tax burden will ensure that Canadian talent continues to head South.

ConstructionThe construction industry continues to thrive in Canada, and presents a good career opportunity.  The never-ending demand from the big projects (look at the skyline in just about any city), coupled with the demand for home renovation projects will ensure this demand continues for some time yet.  The aging workforce will also present opportunities, as workers retire.

The three levels of government in Canada are big employers, employing more than 20% of Canada’s workforce (CFIB).  These are well-paying jobs with great benefits, and with the retiring baby boomer generation comes a continuing need for talent.

More Specifically:

cn towerThere are more than six (6) million people living in the Greater Toronto Area (GTA) and it is home to more than 50% of Canadian head offices. It is the 4th largest city in North America, and represents about 60% of Eagle’s business.  As such it remains Canada’s busiest market, with the biggest appetite for talent.  The financial, telecommunications, insurance and services sectors are all busy.  The construction business is booming and there is a vibrant high tech/startup community.

The Saddledome in CalgaryThere are plenty of signs that Western Canada is recovering from the oil sector meltdown.  While the oil and gas sector itself is not particularly vibrant, it has turned the corner and the worst of the downsizing and layoffs are finished.  Large companies will always need talent, to replace their retiring employees, for new projects and to bring new lifeblood into the organisation.  Governments in Western Canada are continuing to implement programs and projects that require talent, infrastructure spending is happening and there are opportunities, particularly in the larger centres.  BC is enjoying the lowest unemployment rate in the country and Alberta is starting to see jobs come back.  Saskatchewan continues to be a leader in promoting business and hence job opportunities and Manitoba too is doing well.  Overall the West is in a good place.

Parliament building in OttawaEagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”.  Ottawa is very much a government town again, and there are opportunities in the Feds, which is returning to its employment highs of some years ago.  The tech sector in Ottawa is alive and well with some up and comers, like Shopify and Assent Compliance joinng the Mitels and others that have been around a while.  While not providing the opportunities of Toronto, Ottawa does have some demand for talent.  Quebec appears to be enjoying a renaissance as its unemployment rate is now better than Ontario’s, in addition to having healthier finances.  They have been able to attract industries (such as large data centres) to help the economy and add jobs.  It doesn’t hurt that their hydro rates are very competitive as opposed to Ontario’s situation.  The Maritime Provinces don’t represent a great opportunity for the job seeker, however PEI and Nova Scotia are both showing signs of an improving economy.

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. Digital, big data, data scientists, 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.

Outside of Eagle’s realm some of the in-demand skills include the classic tradespeople, drivers, and new tech skills like Artificial Intelligence, Robotics, video gaming skills etc.

 Summary:

Canada added more than 422,000 jobs last year, and with the unemployment rate at its lowest in 40 years it is a good time to be looking for work.

There are a number of factors creating this positive situation, including demographic shifts (retiring Baby Boomers), jobs moving to Canada from more expensive places like Silicon Valley and companies developing new technologies.  The large employers, such as banking sector, insurance sector, retail sector, telecommunications sector and the construction industry continue to demand talent. The growth of the “gig economy” creates new opportunities for people to define their own destiny and become mini-entrepreneurs, or build new enterprises.

Job seekers should research and understand the growing sectors and where the in-demand jobs are.  They also need to be willing to go where the work is!  If I was looking for work I would be moving to the larger centres, investing in in-demand skills and increasing my marketability with the right “attitude”.  Clearly the biggest job market is the GTA, but opportunity exists across the country.

In the hotter markets we are seeing clear skills shortages and the “in demand” people are receiving multiple job offers, giving them the ability to “pick and choose”.  So … IF you are looking people, and want to hire the best talent here are some things you should consider:

  1. Start the process early with a strong PLANNING phase;
  2. Develop very clean processes to find, screen, choose, hire and onboard these new resources (if you drag out the hiring process you WILL lose);
  3. Know that you will have a lot of competition and therefore speed in decision making will be critical;
  4. The job doesn’t stop there … a great retention strategy will be critical!

That was my look at the Canadian job market for the third quarter of 2017 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

IT Industry News - December 2017This is my 30,000 foot look at events in the Tech industry for December 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 Novembers

Oracle logo a large software company originally noted for its databaseFive 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. IBM logoDecember 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 security 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.  Three years ago 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 acquisitions, 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 Uber logoSeagate.  Last year in December 2016 Adecco sold 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; 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.  Yahoo hit the news revealing that one billion accounts were hacked in 2013 making it the largest data breach recorded in history.

Which brings us back to the present …

The apple logo and apple with a bite out of itDecember 2017 saw Atos enhance the footprint of their IT Services firm by paying $5 billion for Gemalto.  Apple were busy, paying $400 million for music recognition app Shazam plus they invested $390 million into optical communications components company Finisar.  Finally, in a relatively quiet M&A month Ingram Micro increased its data protection capability through the purchase of Cloud Harmonics.

The Canadian economy had some positive indicators, adding jobs and reducing the unemployment rate to 5.9%.  The US also continued its growth rate, albeit at a slightly reduced pace although the announced tax changes for business are going to provide a significant stimulus.  Generally reports from around the globe were fairly positive, with job growth and reduced unemployment in most countries.

There was a cautionary report about ransomware in Canada that might suggest up to 44% of SMBs were hit with ransomware in a 12 month period.

That’s what I saw affecting the tech industry for December 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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November 2017 Tech News

Tech News HeaderThis is my 30,000 foot look at events in the Tech industry for November 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 Novembers

Five years ago 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.   In November 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 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. Three years ago 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.  November 2015 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 a 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.  Last year November 2016 saw Broadcom acquire Brocade Communication Systems for $5.9 billion; Adobe purchased multi-channel programmatic video platform TubeMogul for $540 million; IT services and outsourcing provider Wipro Limited bought IT cloud consulting firm Appirio for $500 million; Oracle Corp. announced its plans to acquire DNS solution provider, Dyn Inc.; SoftwareOne acquired and integrated House of Lync; and Avnet completed an acquisition of Hackster.

Which brings us back to the present …

November 2017 saw some interesting information from countries round the world.  China’s growth slowed a little, India is struggling in the IT jobs space and there are some negative some effects from the upcoming Brexit that are affecting the UK and EU.  The US is looking strong again following a hurricane affected dip and Canada added 35,000 jobs in October.

The Big M&A activity for the month sees investment firm Thoma Bravo pay $1.6 billion for Barracuda networks.  McAfee also made an acquisition of Skyhigh Networks now that they are no longer a part of the Intel group of companies.  Smaller deals saw Talend buy Restlet and Qualys buy Netwatcher.

Other companies in the news include Lenovo, a struggling hardware company in a declining PC market and laying off 2% of their workforce.  The other company of interest was Uber who revealed a massive security breach which they had neglected to mention when it happened a year ago!

That’s what I saw affecting the tech industry for November 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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October 2017 Tech News

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

Five years ago in 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 carriers, 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.

Oracle logo a large software company originally noted for its databaseIn October 2013 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 purchase of Public Mobile.

HP logoThree 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 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 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.

dell logoOctober 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 is paying $$110 million for LastPass; Trend Micro is paying $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 is paying $85 million for solution provider Silanis; and Apple is buying a speech processing startup, VocalIQ.  As industries converge it is interesting to see Securitas pay $350 million for Diebold’s US Electronic Security business.

October 2016 saw Qualcomm pay $47 Billion for NXP Semiconductor (interesting that one year later Qualcomm are being pursued).  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.

Which brings us back to the present …

Cisco logoOctober 2017 continues a recent trend of reduced big ticket M&A activity, although there was certainly some action.  Not yet a done deal, but Broadcom is chasing Qualcomm pretty hard and if it goes through it will be the biggest tech deal yet.   The latest rejected offer was north of $100 billion (some reports said $130 billion), but watch that space.  In the meantime Cisco is shelling out $1.9 Billion for Broadsoft which improves Cisco’s software capabilities.  The final significant deal saw Telus beef up its service provider capability with a $250 million purchase of Xavient.

Amazon logoThe other company in the news was Amazon (a) because of its much publicized search for a site for its second headquarters … which has 239 cities around the world excited at their prospects; (b) because they also announced a second presence in Vancouver, bringing another 1,000 jobs and (c) for its growing influence in the AI world, announcing a research center in Germany.

The economy continues to have many positive signs, although Hurricane’s Harvey, Irma and to a lesser extent Maria caused some temporary  negative impact to employment numbers in the US.  The general consensus seems to be that things will pick up again now, with some sectors even benefiting from the clean-up work.  Canada’s numbers were again good with Canada adding more than 300,000 jobs in the last year.

That is my update on tech news for October 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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Independent Contractor or Employee (Canada)

Henry Ford quote about business ownershipBefore I get into this blog post I will post a disclaimer … I am not an accountant or a lawyer, so this article cannot be construed as “advice” from a professional.  I am a staffing company owner who has been in the business more than 20 years and have been very involved with this issue at an industry association level.

In Canada independent contractors are typically one person corporations that offer their services on a “just in time” basis to many organisations.  That flexibility is good for our economy.  Some (small) percentage of those independent contractors will go on to create bigger companies, and that is also good for our economy.

I have written previously about the importance of independent contractors to Canada’s economy …  Independent Contractor Myths and Realities in Canada.

The Federal and Provincial governments have a problem with independent contractors because they often believe they are “employees of a different type” and thus are avoiding paying taxes, EHT, CPP, EI etc.   Obviously in such a climate it is prudent to do everything possible to be “onside”.

“A large percentage of small businesses are actually just ways for wealthier Canadians to save on their taxes …” Justin Trudeau

If you are an independent contractor it is imperative that you operate like a business … here are just three reasons.

  1.  The CRA look at independent contractors across a lot of different industries and are constantly evaluating whether they are true businesses.  If you are deemed to be (a) an employee (worst case) or (b) a dependent contractor (bad news) or  (c) operating on a Personal Services contract (also bad news) the tax implications are significant.
  2. The Ontario Government are likely to pass bill 148 with its effect starting in January 2018.  Some aspects of the bill address  independent contractors including  an increase in fines associated with misclassification.  They are also hiring 175 new employment standards officers, who will be focused on the new Bill 148 changes.
  3. The Federal Government recently tabled tax changes for small business, because they believe some people incorporate to avoid taxes.  You do not want that scrutiny.

Government continues its assault on the independent contractor, so independent contractors need to clearly demonstrate that they are a legitimate business.

“Whenever you see a successful business, someone once made a courageous decision.”  Peter Drucker

Here are some common sense (although not always common) suggestions:

  • Incorporate.  Yes, you can operate as a sole proprietor … BUT as a sole proprietor your agency must deduct CPP and EI, and there is even some debate about EHT.  This makes you look like an employee …  you do NOT want to look like an employee.  If you are serious about being a business then incorporate. PS More and more agencies are refusing to work with sole proprietors.
  • Get advisers … an accountant (who TRULY understands the nuances of this space … most don’t) also get a lawyer.  Sure its OK to do your own books, but still engage these professionals.
  • Have your own website.  What other business do you know that does not have a website?  This is just basic stuff.  You MUST operate like a business.  Your own domain would be a good idea.
  • Have business cards.  Even in the digital age I know of no service business that operates without business cards.  Considering the cost, why would you NOT get them.
  • Have a separate business phone number.
  • Have business insurance.  This is good business sense, and is the right thing to do professionally.  It is available at a reasonable rate and is a business expense … so just do it.
  • Advertise your services … on your website, and perhaps job boards.
  • Participate in industry associations such as AQIII or APCC.
  • Invest in yourself.  Take courses on your own time, learn new skills, spend some of those revenues on increasing the capability of your company (you).
  • Do NOT OPERATE like an employee.  If you are operating on a client site then invariably there will be employees there, with similar skills to you.  You should try to differentiate yourself, to avoid the appearance of being an employee.  Some ideas (and there are plenty more)
    • If you attend a company social, pay your own way;
    • If you take any training through the client, pay for it;
    • Do NOT adopt the rigid 9 to 5 mentality … you are a business, do what it takes.  Leave after the employees and if possible arrive before them.
    • Never get involved in company politics, part of being an independent contractor is remaining independent.
    • Do not get paid like an employee … every business I know gets paid monthly or based on milestone deliverables.  Getting paid every two weeks (or twice monthly) just looks too much like an employee.
  • Have your own tools. This is a big indicator in the CRA tests but most (maybe ALL) IT contractors cannot take their own tools to work, typically for security concerns.  However you should have your own tools for marketing purposes, writing proposals, accounting purposes, training purposes, tracking expenses etc.  Any demonstration that you have your own tools helps.
  • Take on risk.  This is another key indicator for CRA.  Sometimes you may get an opportunity to bill Statement of Work activities rather than time and materials, but most often you are paid an hourly rate.  You should accept contractual risk (non competes, monthly payment terms paid only on acceptance of work etc.).  You accept the risk of being responsible for your own future, training and your next contract.  Anything you can do to exhibit an entrepreneur’s mindset on risk will help.
  • Control. Where possible you should get terms removed from your contract that demonstrate a control over you, such as an employee would have.  Eg Hours of work, dress code, how you do your work etc.  This is a difficult one and end clients are often hard to convince, but it’s worth the effort.
  • Sole client. The longer you work at one site, in the same role, the more you begin to look like an employee.  Despite opinions, there are no hard and fast rules about how long is “safe” or pushing the limits.  You can be pretty sure that if your contract is going into years then it is likely to be scrutinised more closely.  That doesn’t mean you can’t be a contractor, it just makes it harder to justify.  Can you have other clients?  Perhaps a part time role supporting someone else?   If it is a long term contract could you change the terms to a higher risk based reward such as a deliverables based contract?  You could offer your services to charities and give them “in kind” donations of your time.
  • Educate yourself. Do not fall into the trap of reading the US articles, their laws are very different than ours.  Understand how the various levels of Canadian government look at independent contractors.  Be CLEAR about ALL of the things that differentiate you from an employee … hopefully most of the ideas here, but also no pension, no sick days, no vacation.  You accept the risk of no pay if you are not working.
  • Have a Sideline. Many large companies were started by contractors, or a group of contractors.   That is one of the values to the Canadian economy that contractors bring.  Your “sideline” could be Canada’s next big company … it could be anything such as an app, a software or hardware product, a services company.  Have a business plan, work with partners, explore the potential.  It could grow from an interesting hobby into something significant.

All of these ideas are just normal practice for a business, so the overriding consideration for anyone operating as an independent contractor is Think and Operate like a business.

To someone starting out this might seem a little onerous, but really none of these are BIG things and they go some way to telling the world that you truly are an independent business.

As already indicated, these are my personal thoughts on this subject and cannot be viewed as professional advice.

 

The following are some links that might be useful:

Government of Canada CPP & EI Explained (IT Consultants)

AQIII (Quebec Association of IT Freelancers)

APCC (Association of Professional Canadian Consultants)

SMB Statistics in Canada

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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 – Third Quarter 2017

General Observations:

newspaper job sectionThe unemployment rate at the end September was 6.2%, an improvement from the 6.5% unemployment rate at the end of June.  During the previous 12 months, Canada added 320,000 jobs (almost 289,000 full time).

For the purposes of this report I focus on the TSX and during the third quarter it returned to the Q1 level just above 15,600, a gain of about 500 points.

picture of an oil rigThe oil patch continues to struggle, with the price of a barrel hovering in and around the $50 a barrel range.  The continued lack of support from the various levels of government has led to the cancellation of the Energy East pipeline.  This will mean (a) lost jobs, but also (b) reinforce a message to the investment community that Alberta oil is not a good investment.

The Canadian dollar has been relatively strong lately and in the third quarter ranged between 78c US and 82c US.

Piggy Bank accepting moneyThere is little change in the banking sector, which is one of the bigger employers in Canada.  The talent demands for the banks address areas such as regulatory changes, new product development, new service offerings and addressing the aging workforce.  On the other side, new technology and offerings also displaces some of the roles traditionally found at the banks.  The banks remain a good place to find employment, but increasingly the skills needed are specialised.

The telecommunications sector is another large employer in Canada.  Like the banks, this sector is operating in an environment affected by new technological change, demographic pressures and regulatory change in addition to extreme competition.  While they demand the best talent in order to compete, they 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, and over the third quarter averaged about 90,000 new jobs per month.  The demand for skills in the US is luring talent from Canada which is good for the individuals but not so good for Canada in the long term.

The demand for the “trades” continues unabated, as the construction industry seems to be forever busy.  Cranes dot the skies of Canada’s largest cities, and home renovation projects are hard to staff!

The three levels of government in Canada are big employers.  As an example almost all of the jobs added in Canada in September (about 100,0000) can be attributed to public sector jobs.  Clearly the increased government spending is not a boon for the economy, but good for those looking for public sector jobs.

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 the second quarter was 114, which was up from 110 last quarter, and also 110 in Q3 last year.

Eagle logoHere at Eagle, we experienced an expected drop in demand over the Summer months, of about 10% from the second quarter however demand was up 10% over the same quarter in 2016.  There was a corresponding drop in people looking for work over the Summer months.

 More Specifically:

cn towerThe Greater Toronto Area (GTA) is Eagle’s busiest region, representing about 60% of our business.  It is also 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 continues to be one of the busiest markets in Canada, and we see strong demand from our clients for skilled talent.  There is some concern that new legislation from the Ontario Government (Bill 148) will have a negative effect on the temporary help market in particular.

The Saddledome in CalgaryWestern Canada continues to struggle, receiving little help from our Federal government and not helping themselves much at the provincial level.  The cancelling of the Energy East pipeline was a tough blow for the region and optimism in the oil patch is low.  While the Conference Board had expected Alberta to be the fastest growing province in Canada for 2017 I doubt we will see that happen.  The BC economy continues to do well despite the concerns about legislation to curb foreign investment in real estate.

Parliament building in OttawaEagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”.  Ottawa is very much a government town again, although there are some smaller tech companies rising from the ashes of Nortel, JDS and the previously large tech sector. The government continues to employ a lot of people (22,000 more in The NCR since the Liberal government took office) but despite significant Federal government hiring the unemployment rate in Ottawa has been a concern.  Quebec appears to be enjoying a renaissance as its unemployment rate is now better than Ontario’s, in addition to having healthier finances.  They have been able to attract industries (such as large data centres) to help the economy and add jobs.  It doesn’t hurt that their hydro rates are very competitive as opposed to Ontario’s situation.  The Maritime Provinces don’t represent a great opportunity for the job seeker, however PEI and Nova Scotia are both showing signs of an improving economy.

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. Digital, big data, data scientists, 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.

Outside of Eagle’s realm some of the in-demand skills include the classic tradespeople, drivers, and new tech skills like Artificial Intelligence, Robotics, video gaming skills etc.

 Summary:

There are numerous good indicators for Canada’s economy and hence job seekers, but there are also some challenges on the horizon:

  • NAFTA re-negotiations may have a negative impact on our economy;
  • we don’t yet understand all the implications of the Energy East project being cancelled;
  • January in Ontario will see the introduction of Bill 148, a severe increase in minimum wage plus new labor laws that will hurt business and cost jobs;
  • January we will see the introduction of new carbon taxes in Ontario;
  • our Federal Government is introducing new tax changes affecting small business, possibly to help pay for their out of control spending;
  • at the same time that Canada is raising taxes, the US is encouraging small business through tax breaks, which may well cost Canada as some companies will be forced to go where they can make money.

If all of this goes ahead, then we will see a big impact on the job market.

Canada added 320,000 jobs in the last year which is good news for today’s job seekers.  The BIG elephant in the room is whether the factors listed above will conspire to undermine our economy and create a government driven recession.

For job seekers there remain the bright spots, caused by demographic shifts (retiring Baby Boomers), jobs moving to Canada from more expensive places like Silicon Valley and companies developing new technologies.  The large employers, such as banking sector, insurance sector, retail sector, telecommunications sector and the construction industry will always require large workforces representing job opportunity. The growth of the “gig economy” creates new opportunities for people to define their own destiny and become mini-entrepreneurs, or build new enterprises.

The effect of US policy changes by the Trump administration remain to be seen.  Having said that, some possible impacts include immigration (positive for Canada); trade agreements & protectionist policies such as the NAFTA negotiations (possibly negative for Canada); and defense (possibly negative for Canada) all having some impact.

Job seekers should research and understand the growing sectors and where the in-demand jobs are.  They also need to be willing to go where the work is!  If I was looking for work I would be moving to the larger centres, investing in in-demand skills and increasing my marketability with the right “attitude”.

That was my look at the Canadian job market for the third quarter of 2017 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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August Tech News

IT Industry News - August 2017This is my 30,000 foot look at events in the Tech industry for August 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 August in previous years …

Five years ago in August 2012 M&A was slow 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.

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 Adap.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.

Intel logoAugust 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.

IBM logoTwo years ago 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.

The apple logo and apple with a bite out of itLast year 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, Monster 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.  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.  Nutanix bought 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 bought Vancouver based, data access and analytics company Simba.

Which brings us back to the present …

Cisco logoAugust 2017, as has been the case for most of this year was relatively slow on the M&A front.  Symantec is selling its website security business to DigiCert for $1 billion, plus a stake in the larger entity.  Cisco paid $320 million for hyperconvergence company Springpath, CGI bought consulting company in Pittsburgh, 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.

Infosys logoThere was some drama at Samsung, as Jay Y Lee was jailed for 5 years for bribery.  There was also some internal drama at Infosys that saw their CEO Vishal Sikka resign.

The Canadian economic indicators were mixed, but new proposed tax reforms, NAFTA negotiations, new labour laws in Ontario and an impending carbon tax will hurt clearly have a negative impact on the Canadian economy.  Meanwhile, the US economy seems to keep adding jobs and have fairly positive indicators.

It is also interesting to look at the various job situations around the world noting very low unemployment in places like Japan, Germany and Hong Kong with very high unemployment in France, Greece and Spain.  The impact of Brexit on the London job market also seems to be a growing factor.

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 2017 industry news in just about a month’s time.

Until then, 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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July Tech News

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

Five 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.

Cisco logoJuly 2013 was quiet for M&A activity, 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 Toronto-based design agency Jet Cooper.

Twitter logoJuly 2014 had a lot of M&A activity but no real blockbuster deals.  BlackBerry 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 continue to rebuild after selling its devices and handsets business to Microsoft, this time buying Panasonic’s 3G and LTE base station operations division.

IBM logoJuly 2015 saw no billion-dollar deals, but there was some activity with some big names out shopping.  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 is buying 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 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.

Oracle logo a large software company originally noted for its databaseJuly 2016 saw some large deals, with Verizon making 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 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.

Which brings us back to the present …

Mitel LogoIn July 2017, Cincinnati Bell Inc. is buying Hawaiian Telcom Holdco Inc. for $650 million and OnX for $201 million. Mitel announced its acquisition of ShoreTel for $430 million as well as Toshiba’s unified communications business. In Toronto, digital signage solution provider, Dot2Dot, acquired Pixel Point Digital. PNI Canada Acuireco Corp. has purchased Sandvine Corp. for $562 million and plans to merge Sandvine with Procera Networks.

Reports indicate Microsoft plans to cut up to 3,000 jobs while streaming platform, SoundCloud has laid of 40% of its employees, and data storage provider, Seagate, plans more staff cuts due to weak financial performance.

According to threat intelligence provider, Risk Based Security, the number of publicly-reported data breaches in Canada this year is up to 59. In a study conducted by Forrester Data it is projected there will be 5.5 billion smartphone users around the world by 2020. In other news, there has been a recent increase in investments in European startups according to Invest Europe.

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 2017 industry news in just about a month’s time, until then … 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?
——————————————————————————————————————————

June Tech News

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

Five years ago, 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 logoIn June 2013, Salesforce.com purchased marketing technology company ExactTarget for $2.5 billion, which was the big buy of the month. Other acquisitions included Irish mobile company Three’s purchase O2 Ireland for $780 million; 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.

Oracle logo a large software company originally noted for its databaseJune 2014 included 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 platform Tap Commerce and Red Hat is paid $95 million for eNovance.

Intel logoIn June 2015, Intel paid $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.

Microsoft 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; pnd there was plenty of M&A activity. The big deal was undoubtedly the Microsoft purchase of LinkedIn for a whopping $2.6 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 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.

Which brings us back to the present …

June 2017

Amazon logoThe largest deal of the month was Amazon’s purchase of Whole Foods for $13.7 billion or $42 a share. Westcon-Comstar’s American business is being bought by Synnex for approximately $800 million. US fintech provider, Fiserv purchased British financial services technology firm, Monitise for $88.7 million. Microsoft has purchased Israli cloud startup, Cloudyn, for a price between $50 million and $70 million. Rackspace has acquired TriCore in an effort to increase Rackspace’s business from customers who want help running their critical applications. Ebix Inc. has entered into a joint venture with Essel Group. while acquiring a majority stake in ItzCash for $120 million.

Uber logoTravis Kalanick, founder and CEO of Uber, resigned due to investor pressure due to various scandals and setbacks.  Google is being fined $3.575 by the European Commission for breaking antitrust rules.

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 2017 industry 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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