One of the value add items that we produce each month at Eagle is the Industry News, a synopsis of industry happenings over the past month. Following is a “synopsis of the synopsis” … and you can link to our website for the full Industry News for June 2006.
June did not bring a ton of news from our industry, but there were certainly some interesting “tidbits”. The creation of a $20 Billion company through the merger of the telecommunications arms of Nokia and Siemens is certainly big! The donation by Warren Buffet of $30 Billion to the Gates Foundation was amazing, if not totally related to our industry!
There were several studies/reports indicating a positive outlook for IT spending and IT job growth although there was a report showing that there is a huge drop off in the numbers of students who are entering the field! IBM announced that it will invest $6 Billion into India and Motorola is investing $60 million into Singapore. There were layoffs announced at Sun (5,000), Nortel (1,100) and Symantec (80).
On the M&A front there were a number of smaller deals with amongst others, Oracle, CGI, WiPro and EMC making acquisitions.
Generally there continues to be some optimism in the economy but there is still also uncertainty in the Canadian IT sector caused perhaps by the potential for interest rate increases, a strong Canadian dollar, the price of oil and the various government reviews of procurement practices. It will be interesting to see how the Summer unfolds … even the weather has been unsettled!