IT Industry News
May 2015 saw some very large deals on the M&A front, with the biggest seeing Charter Communications spend $55 billion to buy Time Warner Cable and a further $10.4 billion to buy Bright House Networks. This creates the second largest cable company in the US, just behind Comcast. The "billion dollar club" also saw French Telco Altice pay $9.1 billion for another US cable company Suddenlink Communications. Keeping with the billion dollar deals involving telcos, Verizon paid $4.4 billion for AOL to bolster its mobile video capabilities. Another billion dollar deal saw HP unload 70% of its stake in its China server, storage and technology storage unit to Tsinghua Holdings for $2.3 billion. The final billion dollar deal saw EMC pay $1.2 billion for cloud service provider Virtustream. Apple was out buying a couple of companies in May, snapping up mapping company Coherent Navigation and augmented reality company Metaio. In other deals, Avaya bought cloud technology company Esna; and Cisco bought cloud programming interface company Tropo.
Another company in the news was Blackberry, but for the wrong reasons, announcing another layoff as it continues the journey back to significant market share in the smart phone world.
A Trend Micro security and threat report had Canada scoring quite high as a target for online threats. Clearly not a report in which you want to score high! There was another report highlighting the growing IT skills gap in Canada. Canada's economy took a bit of a beating primarily due to the low price of oil; however, things look better later in the year. Part of that optimism is the uptick in the US economy and almost all indicators, reports and surveys for the US were positive in May.
That is Eagle's look at the May tech news. Big dollar acquisitions mostly in the US cable space and AOL, a legend, being swallowed up by Verizon. Is it really 3 years since the Facebook IPO, and five years since that volcanic ash issue in Europe? The next few months will be telling for the Canadian economy, a bit of luck on the oil price side, a weakened Canadian dollar and a positive impact from a booming US economy should see things pick up. Meanwhile it seems like companies are out spending, so we will see what happens!