Posts tagged: Internet

How Mergers and Acquisitions May Actually Narrows the Scope of Innovation

Be it Automobile , Aviation or Heavy Metal Industries, everyone felt the heat of recession but regardless IT fared better than most. In spite of worst economic meltdowns in history, acquisitions among big vendors continued to reshape the market, operating-system wars extended to mobile battlefields, microblogging became a powerful source of real-time information, and the take-up of small, Net-connected devices was stronger than ever.

But how good is this wave of mergers and acquisitions for the future? ( By future I mean upcoming innovation and future of Startups which target innovation not business)

Whenever your biggest competitor takes you over, it blunts the competitive spirit that can drive innovations. Thats what concerns me most, the spirit of innovation is somehow compromised because of takeovers.

Not always always a potential Merger or Takeover can be taken as a positive sign of ever increasing competition and globalization. And particularly not right now when it comes to web and social media startups, many of which are still more focused on innovation and building up audiences than on making profits. Rushing them into deals to fulfill long-delayed plans for an exit strategy could derail the evolution of a strong business plan.

From an investment standpoint, founders and venture capitalists have good reasons to cash out now. Market caps of public tech giants are rising — the Nasdaq gaining big time – and so are their cash stockpiles. For Instance Microsoft has a stock pile of about $49 billion in cash; similar is the story of Google with $24 billion. High-profile Multi Billion dollar deals like the ones we had in recent times have a way of spurring on other acquisitions.

TimeWarner buying AOL and eBay buying Skype come to mind. Even snapping up a hot startup for its technology or talent — Google buying Dodgeball or Yahoo buying Flickr – can lead to culture clashes, customer anger and other disappointing results.

I  tried to re-compile the list of some major takeovers which are substantial enough to change the future of computing.   We are talking about some multibillion dollar mergers and acquisitions, where the Big gets even Bigger.

Oracle eclipses the SUN @ $7.4 Billion

This Merger can be coined as “father of all the Tech Mergers” announced last year. If the announced the deal went through, Oracle,  the industry’s largest database software vendor would get an entry into the server and storage markets worldwide.

The acquisition, still pending, was announced in April, and may even be blocked because European regulators are contending that combining Oracle’s technology with Sun’s open source MySQL database would violate competition laws. Lets see if this deal goes through.

Xerox snaps up ACS in $6.4 billion

Another major takeover, Xerox pays about $6.4 billion in cash and stock for Affiliated Computer Services (ACS), a large IT and outsourcing firm. With this merger Xerox hopes it will give it a bigger foothold in the business services space. While the deal will surely boost Xerox, investors wondered whether it overpriced the deal.

Calling the ACS deal “a game-changer” for Xerox, Burns, CEO of the company, said it would help Xerox “expand our business and benefit from stronger revenue and earnings growth.” The deal will triple the service component of Xerox’s revenue to roughly $10 billion annually from $3.5 billion, according to the company.

Dell – Perot Catch-Up Deal worth $ 3.9 Billion

Buying Perot was a part of Dell’s plan to expand its footprint in the IT services market, which was  a necessity in a time when hardware sales were falling. Dell offered a staggering $3.9 billion for Perot Systems, a 68% premium over Perot’s actual stock value. Dell’s purchase can also be seen as a response to rival HP’s $13.9 billion acquisition the previous year of EDS — another services company founded by Perot.

Cisco-Tandberg worth  $3.4 billion

Cisco, already a major player in collaboration products with WebEx and TelePresence, signed an agreement in October to purchase videoconferencing vendor Tandberg, which makes both video devices and network infrastructure products. The acquisition, if completed, could have both a direct and indirect impact on Cisco’s bottom line, because expanded use of videoconferencing may increase network traffic, letting Cisco sell more switches and routers.

HP Acquires 3Com For $2.7 Billion

HP launched a straightforward assault on Cisco in their own Game of Networks. HP’s increasing influence in data center networking and convergence markets will have a big boost with its purchase of 3Com, a maker of switches, routers and security products. HP says the acquisition will further its data center strategy “built on the convergence of servers, storage, networking, management, facilities and services.” The acquisition of 3Com also help to expand HP’s Ethernet switching offerings, add routing solutions and significantly strengthen the company’s position in China thanks to 3Com’s strong presence in China. The transaction is expected to close in the first half of 2010.

I have collected the figures and numbers from various sources including PCWorld, Gigaom and Wikipedia. Let me know if you have a suggestion or correction to make. Please forgive me for the grammar, I was always bad in Grammar since school :-)

Article Previosuly mirror-posted by me at Global Thoughtz.

Anand

Creative Business In the Digital Era

Unlike other Mondays’ reputation, March 17th was a bright one in London.

…Post-reporting from the “Creative Business in the Digital Era” seminar, in 01zero-one centre in Soho.

The idea in the CBDE was to bring together people from different walks of the creative industry (music, cinema, publishing, photography…) whose common point is the zeros and the ones: digital works and concepts.

…so as to exchange on intellectual property, open rights, business models, digital marketing, creativity, its stimulation, its canalisation…

If it wasn’t for Suw Charman-Anderson and Michael Holloway from the Open Rights Group (a growing NGO community focusing on Digital Rights Issues) I would have probably stayed home and the other guys may have crossed each other on the pub. So thank you guys for setting up and animating the whole day!

The project has a wiki, at our disposal beforehand – a great thing, given the variety of the people attending.

On Monday we warmed up with a notion-shower by Suw, then got in the shoes of Radiohead and their In RainBows experiment and finally had some real entrepreneurs of the digital era sharing their vision:

A great Tom speaker and Reynolds author of “Blood, Sweat and Tea” distributed under a Creative Commons Licence.

John Buckman, multi-entrepreneur, mostly known as Magnatune CEO and as Bookmooch owner.

And finally, David Bausola and Rob Myers, the principal conceptual stormers behind the project “Where are the Joneses?”.

What are the Joneses? Based on a series-like format, it is mostly a transmedia chameleon; the product is shaped by its environment and its audience, the significance changes depending the angle you choose to look at it.

Nobody knew in advance where the joneses were, the public decided the how-what-where, sending them around Europe to find their siblings, participating themselves in the scenario, in the acting etc.

Mr and Ms Jones, if you came to France you might have recognised Laurent Godard as your sibling : he’s the father of Flateurville, a “discussional” building of a village to finally come up with a film. How? Through regular interactions with the audience, in a “salle de jeux” every Thursday evening. More to discover “sur place” if you happen to be in Paris.

Flateurville

The whole experience made me more aware of the fact that prediction is a quite autistic procedure in digital business, you’d better keep it away if you want things going on smoothly. Well I suppose that it had always been like this, long before I woke up, but in digital business where cycles are faster and faster, prediction seems really outdated.

So, just for the pleasure of philosophizing a bit, prediction may have been only a temporary solution for the industrial first era of business, serving to bridge the gap of the missing dialogue with the “consumer”.

John Buckman made this quite clear to me when discussing on his Magnatune and Bookmooch activities where he applies a trial-error-adaptation schema.

“listen” and “reply” in a way that makes sense, seem to form the principia of digital business for those who do it. The commercial transaction being replaced by a commercial natural language dialogue? trial and error this question as well…

Shall this be confirmed, does it mean we’re finally moving on from Industry to Internet? spring feels good…

(to be internetically correct, if someone who reads this is on the south hemisphere, enterring fall, please replace the season by the metallic mecanism as far as spring is concerned, it also feels good)

To get back to last Monday,

My personal favourite gadget presented that day is CCMixter, a pool-tool of music creativity on a “molecular” level : you can post and find samples, remixes,  a capellas and build on them since they are licensed under creative commons. Quite solid concept, as it connects the two extremities of the 2.0 value chain: the artist with the user. Plus it teased some of my memory parts referring to other music tools, like C-sound. I wonder what applies in the case of music-code copyrights…

Cheese.

Accuse me of writting cheese, “come on Georgia, stop name dropping and all”

Nope nope, cheesy or not, the sensation of this seminar was like a cute baby incarnating the taste for openness, the playfulness of creativity and the cosiness of legally-correct digital business.

loved it.

Cheers.

Georgia

Getting hired by Amazon, Apple, …, Yahoo, ZDnet: tips and future hacks.

Trying to digest a cheesy crust pizza this noon, I was wondering if instead of a pizza I was carrying a baby. The good thing was that there would be two of us going back to work, even if the one was rather unqualified to give me hand. What a delight for my pizzababy to grow mentally through this early job! Apart from hanging around with Bruckner’s twins (le Divin Enfant) getting early to work will permit it to develop the working flexibility that parents preannounce and corporations tend to establish through rotation programs.

So, how often will it switch jobs? Every 3 years, two times a year, each month or…. why not several times a day?

Assumption: A job may less and less be outline of your style, status and skills, THE choice that you make in your self-creative youth and pursue with passion until your hands have shrunk and you mumble wisdoms on professional resilience to your children.

It seems (to me, to you too maybe?) that jobs get more and more project–centric, existing-skills based, time and locality indifferent.

with Theme-generated-tasks’ accomplishment  transforming into task accomplishment around a theme.

The digital business field, where change is well in advance, brings up a strong trend on segmentation of the classical notion of job.

Two examples on the internet can tell the story:

Amazon’s Mechanical Turk

and

Innocentive

These two companies propose a per task remunerated employment, amazingly different as regarding necessary skills.

Amazon’s Mechanical Turk mostly addresses the non qualified workforce and Innocentive the ultra specialized scientific one. The concept on both is that you’re hired on a per project basis, for a translation, to prove the Fermat Theorem or to fill in the ISO forms.

It is then highly important to have a personal job management system to handle contests you participate and your prizes, puzzle your profile and communicate with trusted professionals.

A sort of e-mployment survival kit to prevent you from e-xploitation.

This vast talent pool of potential Mechanical Turks, scientists and everyone between, also creates opportunities for providers of meta-HR services to aggregate and compose job particles into a real job.

Providers such as advisors, agents and therapists:

social engineers, serial trendsetters, legal timing planners for fringe technology testers (“get the trial before the action is criminalised with a law”), real life rehabilitation mentors (“get rid of Wii gestures when in the grocer’s”), tec-addiction therapists, viral marketing therapists/ digital image makers (banal already maybe), mini-krach recoverers, startup estate agents, other (attention, this is not a generic term, it can be a job where you are paid to differentiate and foster evolution), and so on.

A combination of a middlejob with a classical one or the mix of various middlejobs could result in a steady plus variable income, mental coherence and growth, an optimised planning and a life-job balance.

On the “which?” the question is open. On the “how many?” 2 jobs maybe ok while 3 or more could definitely assure the statics of the e-mployement construction. …

Job- memo for my pizzababy: Exercise with 3 or more jobs, with an hourly basis frequency, vary the status. In case you need help call your agent.

After it was digested I went back to work.

Georgia

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