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.

April 2016 Tech News

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

Five years ago in April 2011 Texas Instruments bought National Semiconductor for $6.5 billion, Level 3 Communications paid $3 Billion for Global Crossing, Lawson Software was sold for $2 Billion to GGC Software Holdings (an Infor company) and Seagate bought the hard disk drive operations of Samsung.  In April 2012 Facebook made Facebook logoa $1 billion bid for Instagram, Facebook also bought a piece of the patent action from Microsoft after Microsoft had paid AOL more than $1 billion for the patents.  DELL made three acquisitions this month, Wyse technology, Clerity Solutions and Make Technologies.  IBM picked up Toronto based BI company Varicent Software; Intel paid $140 million for some assets from Cray; Citrix picked up Podio; and Twitter bought a startup to acquire its rogersteam of developers. Three years ago in April 2013 Rogers paid $200 million for Primus’s Blackiron subsidiary, including datacenter capability; Toronto based Softchoice also chose to go private in a $412 million private equity deal; Shaw paid $225 million for an Enmax fibre network subsidiary in Calgary; Best Buy sold its stake in Carphone Warehouse for $775 million (having paid $2.1 billion in 2008).  Google paid $30 million for social company Wavii.  Other big names on the acquisition trail this month include Intel (Mashery), IBM (Urbancode); Computer Associates (Nolio).  Finally Facebook had a couple Microsoft logoof small acquisitions Osmeta and Parse.  April 2014 saw Microsoft officially entered the handset business with the completion of the $7.5 billion purchase of Nokia’s devices business.  Zebra Technologies paid $3.5 billion for Motorola’s unit that makes mobile devices for business which is a move in the ever expanding Internet of Things space. Apple paid $479 million purchase of the LCD chip development unit of Renesas Electronics.  IBM snapped up marketing automation software company Silverpop Systems and open source software company Red Hat paid $175 million for storage company Inktank.  Last year in Nokia logoApril 2015 there was plenty of action.  Nokia was the biggest story, paying $16.5 Billion for telecom company Alcatel-Lucent, but there was also a $4Billion deal that saw Capgemini buy services firm IGATE and LinkedIn made its largest acquisition ever, paying $1.5 Billion for training portal Lynda.com.  LinkedIn also bought a predictive insights startup company, Refresh.  Netsuite paid $200 million for ERP and commerce software company Bronto Software and Blackberry reputedly shelled out $150 million for file sharing security company Watchdox.  Salesforce was also out shopping, picking up mobile two-factor authentication startup, Toopher.  In another deal involving billions, Informatica decided to follow in DELL’s footsteps and go private for a $5.3 Billion price tag.

Which brings us back to the present …

Bell logoApril 2016 saw some big deals, the biggest was Bell’s $3.8 billion bid for Manitoba Telephone System, which if approved will change the Canadian telco landscape a little.  Other large deal saw a Chinese conglomerate bid $3.6 billion for Lexmark; and Mitel shell out $2 billion for Polycom.  Oracle paid $663 million for cloud based construction software company Textura.  Nokia, who were also in the news announcing layoffs and continued to evolve their business model, this time into the wearable tech arena with the $192 million purchase of Withings.  Other deals saw Autodesk acquire 3D animation software company Solid Angle; and Dimension Data bought Toronto based cloud services company Ceryx.

Intel logoAs mentioned earlier Nokia announced layoffs, expected after last year’s acquisition of Alcatel-Lucent.  Intel also announced major layoffs of 12,000 staff, reacting to the decline PC sales.

There were some interesting reports about growth in the emerging markets for robotics and Internet of things security while there is also a projected decline in general IT spending for 2016.  This quarter also saw the first decline in smartphone sales as that market reaches saturation however China is expected to grow its technology spend this year.

The US managed to add another 215,000 jobs in March and almost every indicator was positive.  Canada also grew its employment by 40,000 jobs but the economic situation is not as rosy as we see South of the border.

That is it for my monthly look at what was happening in the technology space over the last month, compared to the same month in previous years.  I’ll be back in about a month’s time, until then … walk fast and smile!

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Kevin Dee is CEO 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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March Tech News

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

Five years ago, March 2011 saw Japan’s earthquake, tsunami and subsequent nuclear woes.  On the tech front Montreal’s Radian6 was snapped up by Salesforce.com for about Facebook logo$276 million; Facebook made a couple of acquisitions in the mobile space Snaptu and Beluga; YouTube paid about $50 million for Next New Networks; McAfee bought database security firm Sentrigo; Cisco bought portal company newScale; Teradata bought data analytics startup Aster data … a continuation of the consolidation in the red hot data space; and OpenText bought a mobile app development tool vendor WeComm.  In March 2012 there was some activity with a couple of (then) young companies receiving significant Cisco logocapital — Appirio ($60 million) and Hootsuite ($20 million).  Cisco made a couple of acquisitions, paying a whopping $5 billion for video software and content company NDS Group in addition to a smaller network management buy, ClearAccess.  NEC paid $450 million for the information management business of Convergys and Avaya paid $230 million for an Israeli videoconferencing and telepresence company Radvision.  Other companies on the acquisition trail were DELL, EMC, SafeNet, Avnet and The Utility Company.  Three years ago, March 2013 saw some of the “usual suspects” making acquisitions, but there were no billion dollar deals announced.  Oracle continued its move Google signinto the telco space with the purchase of Tekelec; Google bought a small Toronto University based company DNNresearch in the machine learning vertical; Microsoft sold Atlas Advertiser Suite to Facebook; and Yahoo bought Summly.  In March 2014, Facebook made a, somewhat surprising, $2 billion acquisition of virtual reality company Oculus VR.  Intel also expanded its horizons with the $150 million acquisition of smart watch maker, Basis Science.  SAP added to its purchasing software suite with the acquisition of Fieldglass and Telus made a couple of buys, Enode a management consulting company out of Quebec and Med Access an addition, in British Columbia, to their healthcare HP logodivision.  Last year, March 2015 saw some significant M&A activity with HP paying $3 billion for Aruba Networks; Lexmark paying $1 billion for customer management software company Kofax; eCommerce company Rakuten paid $410 million for ebook marketplace Overdrive; Cheetah Mobile paid $58 million for mobile ad networkMobPartner;  TeraGo Networks paid $33 million for cloud provider RackForce; IBM bought natural language and image processing company AlchemyAPI; and in the cable TV world, Charter Communications paid $10.4 billion for Bright House Networks.

Which brings us back to the present…

dell logoMarch 2016 saw the $3 billion sale of Dell Services to NTT, a direct result of Dell’s restructuring following the recent purchase of EMC.  IBM was out bolstering its services business with a couple of acquisitions; the first was Optevia, a UK-based integrator focused on Microsoft Dynamics; and the second was Bluewolf Group, a global Salesforce consulting partner.  Montreal based Yellow Pages picked up Toronto based Juice Mobile, primarily for its mobile marketing capability.  Another Toronto company, Influitive raised some cash ($8.2 million) and bought a couple of mobile app companies, Ironark Software and Triggerfox; and Netsuite bought IOity solutions a cloud based manufacturing software company.

IBM logoWhile IBM was bolstering its services business through acquisitions it was also trimming staff, with a reputed 14,000 jobs on the block.  Other companies laying off staff included SurveyMonkey and smartwatch company Pebble.  Cisco meanwhile was spreading some cash around with significant investments into India’s digital connectivity initiatives and a smart city initiative in Berlin.

In other news, the tech world lost a couple of icons. Andy Grove, founder of Intel, passed away, as did Ray Tomlinson the inventor of email.

On the economic front the US added another 200,000 jobs in February and the various surveys were generally positive.  Canada on the other hand lost 2,300 jobs and the unemployment rate hit 7.3%.

That is it for my monthly look at what was happening in the technology space over the last month, compared to the same month in previous years.  I’ll be back in about a month’s time, until then … walk fast and smile!

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Kevin Dee is CEO 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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February 2016 Tech News

Tech News HeaderThis is my 30,000 foot look at events in the tech industry for February 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 Februarys …

Five years ago in February 2011 IT was a quiet month for M&A with HP buying Vertica; Opentext bought Metastorm ($182 million); and Rackspace acquired Anso Labs.  World news was dominated by the popular uprisings in a growing number of countries and the reactions of those governments including the brutality of Gaddafi’s Libyan supporters.  February 2012 was not a blockbuster month for M&A, but there was some interesting
Oracle logo a large software company originally noted for its databaseactivity.  The biggest deal of the month saw Oracle pay $1.9 billion for talent management company Taleo.  Siemens Canada paid $440 million for networking equipment company Rugged.com.  IBM bought BYOD company Worklight; Dell bought backup and recovery company AppAssure; Apple bought mobile search company Chomp; and LM Ericsson bought Ottawa based BelAir Networks.   Three years ago in February 2013 Dell went private in a $24.4 billion deal, that included a $2 billion investment by Microsoft.  Oracle paid $1.7 billion for networking company Acme Packet Inc.; Rackspace bought big data company ObjectRocket; Telus was busy with two acquisitions, electronic medical records division of the Canadian Medical Association and digital forensics company Digital
HP logoWyzdom; HP also sold the Palm operating system to LG for their smart TVs.  February 2014 was busy in M&A. Facebook make a big move with the $16 billion acquisition of Whatsapp.  Comcast made a $45 billion play for Time Warner Cable and regulatory approval or otherwise is imminent; Oracle paid a reputed $400 million for data management platform company Bluekai; LinkedIn paid $120 million for online job search company Bright; and Klout was bought for about $100 million by Lithium Technologies.  Google made a couple of acquisitions, online fraud company Spider.io and secure logon company Slicklogin.  IBM bought database as a service company Cloudant; and Monster bought a couple of companies, social profile company Talentbin and job aggregation and distribution technology company Gozaic. Finally, Microsoft announced Steve Balmer’s
Microsoft logoretirement and appointed a new CEO, Satya Nadella. Last year in February 2015 saw some interesting activity.  The $6.3 billion merger of Staples and Office Depot and the $1.6 Billion purchase of Orbitz by Expedia are two examples of sectors experiencing massive consolidation.  There was a big buy in the communications and IT space with Harris paying $4,75 billion for Excelis to establish a 23,000 person company.  There was a big data center play with UK based Telecity Group paying $2.2 billion for Interxion Holdings.  Microsoft made a couple of acquisitions, paying $200 million for pen-tech maker N-Trig and $100 million for mobile calendar company Sunrise.  Samsung bought a mobile payment company (competing with Apple pay), LoopPay.  Also out buying was Twitter which picked up Niche, a network of social media creators.  There were a number of interesting deals in Asia, including Sapdeal buying luxury fashion estore Exclusively; Foodpanda made six acquisitions of online meal delivery services to establish itself as a powerhouse in that space.  Showing some forethought Australian job board OneShift has bought Adage, which is a job board serving people over 45.

Which brings us back to the present …

Cisco logoFebruary 2016 saw some action in the M&A world.  The biggest deal saw HNA Group of China pay $6 billion for Ingram Micro.  Two other billion dollar deals included Cisco paying $1.4 billion for IoT company, Jasper Technologies and a consortium of Chinese internet firms making a $1.2 billion bid for Opera. Microsoft was busy with a couple of acquisitions, Xamarin a cross platform mobile application development company, and Swiftkey which produces predictive keyboard technology.  Another busy company was Alibaba Group which was investing in a bunch of companies, including a $100 million investment in Groupon, and smaller investments in microblogging site Weibo; software company Momo; augmented reality startup Magic Leap; Chinese retail chain Suning; and Singapore telco SingPost.  Other companies of note out buying included IBM who bought digital agency Aperto and Blackberry acquired cybersecurity company Encription.

The apple logo and apple with a bite out of itIn other news Apple is in a battle with the US government about privacy concerns after being ordered to develop a back door into its operating system.  It was also interesting to see the projected growth in the mobile space with 5.5 billion users expected by 2020.

There wasn’t much good news on the economic front as both Canada and the US had a bit of a slow month.  Canada lost about 5,700 jobs and the unemployment rate jumped a little to 7.2%.  Various US indicators were down but everything is relative and general consensus is that things overall are still positive for the US economy.

That is it for my monthly look at what was happening in the technology space over the last month, compared to the same month in previous years.  I’ll be back in about a month’s time, until then … walk fast and smile!

—————————————————————————————————————————————–
Kevin Dee is CEO 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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January 2016 Tech News

it-industry-news-january-2016This is my 30,000 foot look at events in the tech industry for January 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 Januarys …

Five years ago in January 2011 economic news was generally positive, Steve Jobs
The apple logo and apple with a bite out of itannounced his leave of absence from Apple and Larry Page assumed the CEO role at Google.  There were also some big M&A deals, the largest being the $3.1 Billion acquisition of Atheros Communications by Qualcomm.  Verizon paid $1.4 Billion for Teremark Worldwide and IGate paid $1.2 Billion for Patni Computer Systems.  Also out spending money were Dell, Google, Cisco and Salesforce.com. Things were very quiet in M&A four years ago in January 2012.  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 logoCisco 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 Google signinteresting 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. Last year in January 2015 the biggest deal O2 logosaw 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 Twitter logobought 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.

Which brings us back to the present…

January 2016 sees the continued challenges in the Canadian economy stemming from low oil prices, a weak dollar and relatively high unemployment, particularly in the oil patch.  Canada did add 23,000 jobs in December but the unemployment rate remained at 7.1%.  The US continues to add jobs, a record 257,000 private sector jobs in December, although there are also some signs that the growth is slowing down.

IBM logoOn the M&A front there were no huge deals, but there was plenty of activity with some of the household names out shopping.  IBM bought video service provider Ustream; Microsoft bought gane ased leaning 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.

There were a number of interesting funding announcements with IoT company Foresight Technologies raising $76 million; Cybersecurity firm Malwarebytes raised $50 million; SaaS security company EiQ Networks raised $30 million and several other up and comers raised between $7 million and $25 million.

Microsoft logoIn other news Xerox announced it would be following a trend, and splitting into two separate public companies; Microsoft a one billion dollar philanthropic endeavor donating cloud services to non-profits and worldwide IT spending took a bit of a dive in 2015 and it is expected that it will be 2019 before we see 2014 levels of spending again.

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 CEO 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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Tech News for December 2015

industry-news-december-2015This is my 30,000 foot look at events in the tech industry for December 2015. 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 …

dell logoSometimes we think IT news in December can be slow, but the last 5 years might belie that theory!  Five years ago in December 2010 there was plenty of action.  Dell made two storage acquisitions, Compellent Technologies ($820 million) and Insite one.  Siemens and Atos Origin formed a new European IT outsourcing company in a deal worth more than $1 billion.  J2 global Communications bought (Ottawa based) Protus IP Solutions ($213 million); Juniper Networks bought Altor networks for $95 million; Salesforce.com bought a software development platform Ruby from Heroku for $212 million; Earthlink paid $370 million for One Communications; BMC Software bought GridApp Systems; and L&T infotech established a significant Canadian presence through the acquisition of Citigroup’s IT outsourcing arm.  In December 2011 Ottawa’s March Networks was snapped SAPup 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.  Three 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.  Oracle logo a large software company originally noted for its databaseDecember 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.  Last year, December 2014 was not such a slow news month, with the political and Microsoft logotechnical ramifications of “the Sony hack” causing uproar 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.

Which brings us back to the present …


Shaw logoDecember 2015
was not a particularly 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.

ToshibaOther companies in the news include the venerable Toshiba, which has been decimated following the financial scandals it suffered.  It looks like layoffs might reach 10,000 as it undergoes a massive restructuring.  Oracle announced an investment in Austin, Texas to build a campus attracting new grads and Samsung and Apple might have settled a five year patent dispute.  An IDC report was bad news for Blackberry, as it forecasts that IOS, Android and Windows will be the top smartphone platforms for the foreseeable future.

US GovernmentOn the economic front the US economy shows no sign of slowing down, adding another 250,000 jobs in November.  All of the indicators were positive, with four separate surveys indicating that companies were going to be growing their tech employee base in 2016.  Canada however is another story, losing 35,700 jobs in November, albeit many of them temporary jobs associated with the election.  The unemployment rate did edge up to 7.1% and while the third quarter saw GDP rise slightly after two quarters of contraction, the economy continues to sputter.  Having said that, demand for professionals is increasing faster than supply and Canada is anticipating an increase in skills shortages.

I have to say that 2015 was not a great year in Canada’s economy, but maybe the US recovery will have a drag along effect for Canada in 2016?  We can hope!  That’s my look at the tech news for December 2015.  Until next month, walk fast and smile!

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Kevin Dee is CEO 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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Tech Industry News for November 2015

Tech News HeaderThis is my 30,000 foot look at events in the tech industry for November 2015. 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 Twenty-Ten perennial acquirer EMC paid $2.25 billion for Isilion; Attachmate bought Novell for $2.2 Billion; Oracle paid $1 Billion for Art Technology Group; NTT paid $1 Billion for Keane; Amazon paid $500 million for Quidsi; and Juniper Networks bought Trapeze Networks for $152 million.  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 Best Buy Logotechnologies bought Symantec out of a storage and security 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)
Opentext logobought Broadstreet for $8.2 million.   Two years ago 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 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.  Last year, November 2014 was an exceptionally quiet month on the M&A front Yahoo logowith 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.

Which brings us back to the present …

expediaNovember 2015 saw a number of smaller M&A deals, but not much in the way of mega-deals.  The one 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 fAllstream.  Other, smaller deals saw Apple buy Faceshift, a motion capture company whose technology was used in the latest The apple logo and apple with a bite out of itStar 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.

blackberryIn other news this month, if you do not understand the impact of “blockchain” then you should read up on it, a disruptive technology that will impact the financial sector for sure.  It was also interesting to see that 2016 is predicted to bring a 30% increase in the number of “things” on the “Internet of Things”, making it a $235 Billion market next year.  November also saw Blackberry take one on the chin in Pakistan and will need to exit that market before year end, otherwise they would need to share user data with the government.

The economy continues to boom in the US, which once again added 200,000+ jobs and saw many positive indicators.  Canada meanwhile, added 44,400 jobs but many of them were temporary and related to the election, and so expected to disappear again in December.  The oil sector is desperate with continuing layoffs and while some markets are in decent shape the mood is not great.  It remains to be seen what impact our new Federal Government will have, but hopefully it will put sufficient emphasis on the economy.

That’s what I saw affecting the tech industry for November 2015.  Until next month Walk Fast and Smile!

—————————————————————————————————————————————–
Kevin Dee is CEO 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 Myths & Realities in CANADA!

SMB Statistics in CanadaFrom time to time governments will decide that they need to crack down on independent contractors.  Typically the suggestion is that independent contractors are paying less in taxes than they should, or that they are really employees.  During the run up to the recent federal election Justin Trudeau made some references to small business owners avoiding taxes, and hopefully he does some research before he buys into a rhetoric that believes every worker should be an employee of a large entity.

Here are some things you might not have known about independent contractors in the professional space in Canada .  It is very important to remember that Canadian laws are different than US laws., because too often I see “experts” weighing in with advice, based on their US experience.

  1. Taxation … contractors pay the same amount in taxes as everyone else.

An independent contractor in Canada is typically a one person corporation.  Her corporation gets paid for the work done and the contractor either (a) takes a dividend from the corporation as opposed to a salary, or (b) pays themselves a salary.  The dividend route only provide a small tax advantage (by way of deferring taxes) IF she leaves some of the earnings in the company.  If, like 99% of Canadians she spends what she earns then she pays pretty much the same amount of tax as everyone else.  If she doesn’t spend every penny then she might defer tax … but she still pays it!

  1. Expenses … yes the independent contractor gets to write off SOME business expenses.

These are typically minimal, AND if they worked for “big company” then it would be “big company” writing off the expenses.  So, the write offs would have occurred anyway. These are the expenses associated with taking responsibility for a business … marketing, technology, professional services and other necessary business costs.  All of these costs go back into our economy supporting other businesses. and creating jobs.

  1. Risk … independent contractors accept some risks, like any business.

An independent contractor is a business, and as such accepts some risks as it is a lifestyle they choose.  They have no guarantees of long term work they are responsible for finding every gig themselves, in strong or weak economies.  They can be let go at a moment’s notice, with no severance.  If their work is not accepted they don’t get paid.   They need to carry business insurance because they can be sued by their client.  They accept the risk of their and their family’s health, with no big company benefits.  They don’t get paid for time off, vacations, sick days or training time.

  1. Value to the economy … they are a big boon to Canada’s economy.

Having a flexible workforce is HUGE for all companies, and essential to many!  Special projects, seasonal demands or the ability to pilot new ideas without committing to long term employment contracts are essential for these companies.  Having rare expertise available to many companies, rather than just one employer, is a big advantage to Canada’s economy and the average self-employed individual is very motivated to be productive … their continued contract depends on it.

It is worth noting that some percentage of independent contractors have aspirations for a bigger corporate entity.  They might be developing a product on the side, or they might band together with a few others to create a company.  There are many success stories where one or a few contractors formed a company that became a household name.  Some names that come to mind might include CGI, Calian and Cognos but I’m sure there are many.  Entrepreneurs will often start small and go on to bigger things.

  1. The New Way of Work … this is a growing trend in society today

Whether to become self-employed has always been a personal choice.  It offers the individual more control over their career, the ability to earn a good income without having to move into management when they are more interested in a specialised career.  It allows for freedom to take time off for whatever reason.  These people choose to manage their own retirement plans.  They have to find their own benefits and accept the responsibility of  business ownership.

I guess Ronald Reagan might have been right when he said, “You can’t be for big government, big taxes, and big bureaucracy and still be for the little guy.”

It would be my wish that all elected officials understand the realities of employment today and understand the value of these small business owners.  These are valuable contributors to Canada’s economy and messing with that is not going to help anyone!  It certainly won’t put more tax dollars into the coffers!

“Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others. ”  Ayn Rand

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Kevin Dee is Chairman and 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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Tech Industry News for October 2015

Tech News HeaderThis is my 30,000 foot look at events in the tech industry for October 2015. 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 Twenty-Ten Bell Canada bought a data center in Montreal (Hypertec) and picked up xwave from its subsidiary Bell Aliant.  Rogers paid $425 million for Atria networks and IBM picked up Toronto based Clarity Systems.  A year later in steve jobsOctober 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).  Three years ago EMC logothe 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 databaseOctober 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 purchase of Public HP logoMobile.  Last year 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.  Interestingly enough this takes effect November 1, 2015.  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 internet entity.

Which brings us back to the present …

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 are paying $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 IBM logoLastPass; 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.

Twitter logoOther companies in the news include Twitter who announced 336 layoffs; Apple lost a patent fight with the University of Wisconsin to the tune of $234 million (of course they also recorded record profits of more than $5 billion).  Google are launching a neat project to bring the internet to 100,000 Indonesian people using balloons (Project Loon).

The US economy continues to impress, adding another 200,000 jobs and having generally positive indicators from surveys and reports.  There are signs that the growth is slowing but this is just to be expected.  Canada added 12,100 jobs in September but the unemployment rate rose to 7.1%.  A new Liberal government was voted in, so we will watch how that works out.

That is my update on tech news for October 2015 … until next month, stay positive, walk fast and smile!
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Kevin Dee is CEO 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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Tech Industry News for September 2015

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for September 2015. 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 2010 HP bought 3PAR for $2.4 Billion and they also paid $1.5 Billion for Arcsight and 3M paid close to $1 Billion for Cogent.  RIM bought a substantial part of DataViz, Ericsson beat out a local Ottawa based group in an auction for another piece of the defunct Nortel empire, CA bought Hyperformix; and AOL bought

SAPTechCrunch.  In September 2011 Broadcom paid $3.7 Billion for NetLogic.  Google was busy, buying restaurant reviewer Zagat 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. In

blackberry 10September 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 Systems bought Epic Information Systems.  September 2014 saw some big deals announced, including Microsoft’s $2.5
Google signbillion 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.

Which brings us back to the present …

Microsoft logoSeptember 2015 saw a reasonable amount of M&A activity, but no blockbuster deals.  Microsoft was very active this month closing three deals, Adxstudio 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 is expanding its services offering through the acquisition of IT Weapons; Qualcomm bought medical device and data management company Capsule Technologie; Networking and storage company Barracuda Networks is buying online backup and disaster recovery company Intronis; and Compugen is buying some of the assets of another Canadian company Metafore.

HP logoAlso in the news in September was HP, announcing another round of layoffs just prior to the November 1 split into two separate companies.  The smartphone industry is hurting, last month we heard from HTC and Lenovo, this month it is Samsung announcing cutbacks.

US GovernmentThe US economy continues to impress, adding another 190,00 jobs in August (about the same as Canada has added in a year).  Almost all of the surveys and indicators were positive with the jobless rate edging down to 5.1% and the only cloud on the horizon being labor shortages in the construction industry … and we will see more of that in many industries.

canada flagCanada on the other hand continues to struggle, having endured a “technical recession” through the first half of 2015 there might be some positive signs for the second half based on a sharp increase in GDP in June.  The unemployment rate rose to 7% however Canada did add 12,000 jobs in August.

That is what I saw in the tech news for September.  I will be back in just about a month.  Until then Walk Fast and Smile!
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Kevin Dee is CEO 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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Tech Industry News for August 2015

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for August 2015. 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 2010 Google made five acquisitions … Socialdeck, Angstro, Slide, Jambool and Like.com, but Intel spent the most money … paying $7.7 billion for McAfee AND $1.4 billion for Infinion Technology’s wireless division!  IBM bought Datacap and Unica Corp; HP bought Fortify Software and Stratavia; 3M paid $900 million for Cogent; CA paid $200 million for Arcot Systems; and Rim, Cisco, Citrix and Nokia were HP logoall out shopping too!  In addition to their two acquisitions HP lost CEO Mark Hurd to a scandal.  Three 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 Citrix 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
Google signdeveloper, Texas Memory Systems.  The other “big name” deal was Google’s purchase of social media marketing company Wildfire Interactive, reputedly for $250 million.  Closer to home, Quebec’s 20-20 Technologies was sold for $77 million to private equity company Vector Capital Corp.  Last year August 2013 saw some interesting activity from a number of players.  At a time when employee engagement is considered critical, it was disheartening to see Cisco announce record profits and lay off 4,000 people at the same time.  IBM reputedly paid $1 billion for Trusteer, a cybersecurity company specialized in the financial services sector;  Qualcomm sold its fleet management software unit for $800 AOL logomillion 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; Google bought patents to support its Glass product from Foxconn; Software AG bought analytics firm Jackbe; Opentext paid $33 million for cloud based software company Cordys; and SAP bought ecommerce company Hybris. Last year in August 2014 there were no blockbuster deals, however a number of big name companies were out with their cheque books.  Intel paid $650 million for the LSI 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.  It appears that the big companies keep getting bigger, which is the way that the business world works!

Which brings us back to the present …

August 2015 was an exceptionally slow month in the M&A space however there were two IBM logobillion 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.  A small deal saw Calgary based Above Security bought by Hitachi; Transcomos bout 30% of Vietnamese daily deals site Hotdeal; Freshdesk bought live-chat company 1Click; and PLDT bought ecommerce startup Paywhere.

htc logoOther companies in the news were HTC for laying off 2,250 people and Lenovo who laid off 3,200 people.  Both companies struggling in the hyper-competitive smartphone space.

On the economic front there is much debate about Canada’s latest “recession” following reports of two consecutive quarters of negative GDP growth.  Certainly the West is suffering because of the price of oil however Canada is still adding jobs and consumers are spending.  There is no panic, but it certainly isn’t the US, which seems to be going from strength to strength.  Almost every indicator there was positive again this month, and another 185,000 jobs added!  (Note: By the time you read this the August figures may have been released, so bear in mind this update is based on July numbers released in August.)

That’s what caught my eye over the last month, the full edition will be available soon on the Eagle website.  Hope this was useful and I’ll be back with the September 2015 industry news in just about a month’s time.

Walk Fast and Smile!

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Kevin Dee is CEO 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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