The Eagle Blog

July IT Industry News

Every month I take a 30,000 foot look at events in the ICT industry. This is my overview of July’s news, with a brief reminder of what was news in July the last couple of years! What you see here is a precis of the monthly report I produce, which will be available at the Eagle website over the next day or two.

Two years ago in July 2006 AMD bought ATI for $5.4B, HP bought Mercury Interactive for $4.5B and EMC paid $2.1B for RSA Security. Microsoft was fined $350M by the EU for abusing its “near monopoly” and Kazaa paid $100M + to settle its file sharing lawsuits. Last year in July 2007 HP paid $1.6B to buy Opsware, Steria paid $1B for Xansa, IBM paid $160M for BI company Datamirror (and still bought Cognos) and Google paid $625M for Postini.

In July 2008 the big deal is the purchase of Foundry Networks by Brocade Communications for $3B. IBM had a couple of acquisitions paying $340M for ILOG and an undisclosed amount for Platform Solutions. British Telecom paid $105M for web telephony company Ribbit and Microsoft also had a couple of acquisitions (DATAllegro and Powerset). Open Text continues its spending spree with a couple more buys (eMotion plus a division of Spicer). Other noteworthy companies in the M&A space included Virgin Mobile USA, Oracle and Cisco.

Commensurate with the economic climate we saw some conflicting reports with NACCB announcing record IT employment in the US and CDW suggesting that 51% of businesses will increase IT budgets in the next 6 months. On the flip side US tech worker confidence is down and employment numbers in Canada were down in June. Gartner released a tough report about security in the cloud computing world and the “spam king” Robert Soloway was jailed for 47 months.

Bell Canada’s reinvention under new ownership began with changes at the top and an announcement that 2,500 management jobs will be cut. AMD’s CEO quit after seven consecutive quarterly losses and Apple surpassed Acer to become the number 3 PC vendor in the US. Alcatel Lucent saw changes at the top with both CEO (Patricia Russo) and Chair (Serge Tchuruk ) leaving. July also saw the official retirement of Windows XP!

That’s what caught my eye over the last month, for more details go to the Eagle web site where the full edition should be available over the next couple of business days. Hope this was useful and I’ll be back with August’s news in just about a month’s time.


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20 thoughts on “July IT Industry News

  1. That’s an interesting comment. Non-competes are the only thing that provide any kind of protection in our industry. If they don’t exist then unscrupulous operators just take over contracts for $1 less, because for any number of (bad) reasons they have a lower cost base.

    Our primary use of non-competes is to stop people from flipping agency while still in the same job we put them into … doesn’t seem too unreasonable to me.

    We have non-competes with our staff to protect us in the event that they walk over to the competition. We ask for 6 months to allow ourselves time to bridge the relationships that we paid the former employee to develop on our behalf. We don’t stop people working for competition or anyone else for that matter.

    If there is no protection for agencies then why would anyone stay in this business? It’s a tough business at the best of times without the constant threat that your whole revenue stream could be gone the next day.

    Or maybe you think that would be a good thing too?

  2. That’s an interesting comment. Non-competes are the only thing that provide any kind of protection in our industry. If they don’t exist then unscrupulous operators just take over contracts for $1 less, because for any number of (bad) reasons they have a lower cost base.

    Our primary use of non-competes is to stop people from flipping agency while still in the same job we put them into … doesn’t seem too unreasonable to me.

    We have non-competes with our staff to protect us in the event that they walk over to the competition. We ask for 6 months to allow ourselves time to bridge the relationships that we paid the former employee to develop on our behalf. We don’t stop people working for competition or anyone else for that matter.

    If there is no protection for agencies then why would anyone stay in this business? It’s a tough business at the best of times without the constant threat that your whole revenue stream could be gone the next day.

    Or maybe you think that would be a good thing too?

  3. Does this mean that if one of your employees leaves he/she cannot earn a living for six months?

    Or, are they just not allowed to work with the clients they had at Eagle?

  4. Does this mean that if one of your employees leaves he/she cannot earn a living for six months?

    Or, are they just not allowed to work with the clients they had at Eagle?

  5. Wow. *6* months. And on your web site you brag about Eagle being such a great place to work.

    And it may be, until you decide to leave. 🙂

  6. Wow. *6* months. And on your web site you brag about Eagle being such a great place to work.

    And it may be, until you decide to leave. 🙂

  7. Eagle does not restrict anyone from making a living … ever. The ONLY restriction on a former salesperson is that they not sell directly to their Eagle clients for a period of 6 months after leaving. We do not try to stop them going to competition, nor do we restrict them from selling to the rest of the market. The reasoning, as stated above, is that Eagle paid that person to develop relationships with Eagle’s client. For them, and their new employer, to profit at Eagle’s expense is unfair. A 6 month “hiatus” is not much to ask.

    Perhaps you would like to share your name on your answer so I can understand where this might be coming from. It is always more difficult to respond to an anonymous comment.

  8. Eagle does not restrict anyone from making a living … ever. The ONLY restriction on a former salesperson is that they not sell directly to their Eagle clients for a period of 6 months after leaving. We do not try to stop them going to competition, nor do we restrict them from selling to the rest of the market. The reasoning, as stated above, is that Eagle paid that person to develop relationships with Eagle’s client. For them, and their new employer, to profit at Eagle’s expense is unfair. A 6 month “hiatus” is not much to ask.

    Perhaps you would like to share your name on your answer so I can understand where this might be coming from. It is always more difficult to respond to an anonymous comment.

  9. Whether it is unfair or not for an ex-employee to work with an Eagle client is not really relevant. In my view it is not unfair at all; it is the cost of doing business.

    The purpose of non-compete agreements is to protect weak companies from their competitors. There is nothing “fair” or “unfair” about it; it is a simple matter of self-interest.

    The ex-employee (or consultant placed by the staffing agency) has a different interest, and is therefore entitled to fight against non-compete agreements.

  10. Whether it is unfair or not for an ex-employee to work with an Eagle client is not really relevant. In my view it is not unfair at all; it is the cost of doing business.

    The purpose of non-compete agreements is to protect weak companies from their competitors. There is nothing “fair” or “unfair” about it; it is a simple matter of self-interest.

    The ex-employee (or consultant placed by the staffing agency) has a different interest, and is therefore entitled to fight against non-compete agreements.

  11. There’s nothing wrong with anonymous comments.

    Kevin, you are president and CEO of a large staffing company. As such you can say what you like, within reason, without worrying about repercussions.

    Not everyone enjoys that level of security. For all we know, if “Anonymous” were to reveal him/herself, they could find their career severely limited.

    I agree however, that anonymous postings make it difficult to carry on a conversation. To me it looks like there may be two different people responsible for the “Anonymous” postings.

  12. There’s nothing wrong with anonymous comments.

    Kevin, you are president and CEO of a large staffing company. As such you can say what you like, within reason, without worrying about repercussions.

    Not everyone enjoys that level of security. For all we know, if “Anonymous” were to reveal him/herself, they could find their career severely limited.

    I agree however, that anonymous postings make it difficult to carry on a conversation. To me it looks like there may be two different people responsible for the “Anonymous” postings.

  13. Don … thanks for your comment. Certainly 99% of the time the comments come anonymously and its not an issue. I find it hard to respond when the comments seem
    “loaded” but I don’t know who is shooting.

    I also think that as CEO of a company who is openly blogging I leave myself open to significant risk. Clients, employees and contractors all have access to this blog. I most certainly worry about repercussions.

    I take your point that anonymous might be in a precarious position … fair comment.

  14. Don … thanks for your comment. Certainly 99% of the time the comments come anonymously and its not an issue. I find it hard to respond when the comments seem
    “loaded” but I don’t know who is shooting.

    I also think that as CEO of a company who is openly blogging I leave myself open to significant risk. Clients, employees and contractors all have access to this blog. I most certainly worry about repercussions.

    I take your point that anonymous might be in a precarious position … fair comment.

  15. Hi Kevin

    I m an Indian IT professional,female 34 yrs old(Masters in Computetr applications) with 5 years experience in the IT sphere.I’ve been involved in the Pharma QA validation and testing areas.

    I ‘d love to work for a Canadian company,but I posess only a US work permit and not a Canadian one, How does one apply for Candaina jobs without a Canadian work permit?Could you give me any leads on this?

    my email is johnradus@gmail.com

  16. Hi Kevin

    I m an Indian IT professional,female 34 yrs old(Masters in Computetr applications) with 5 years experience in the IT sphere.I’ve been involved in the Pharma QA validation and testing areas.

    I ‘d love to work for a Canadian company,but I posess only a US work permit and not a Canadian one, How does one apply for Candaina jobs without a Canadian work permit?Could you give me any leads on this?

    my email is johnradus@gmail.com

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