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EU investigates Google

The EU has opened an anti-trust case against the Internet giant.

Paul Booth
By Paul Booth
Johannesburg, 01 Mar 2010

The EU opened an anti-trust case against Google last week. At home, it was quiet again, with some interesting local results taking much of the local ICT media space.

Key local news of the past week

Look out for new faces at ICASA, including a new chairman.

Paul Booth, MD, Global Research Partners

* Satisfactory interim figures from Pinnacle, with revenue up 8% and profit up 20%.
* Mixed interim numbers from Blue Label Telecoms, with revenue up 11% but profit down 6%; GijimaAST, with revenue down 3.6% but profit up over 100%; and Mustek, with revenue down 7.6% but profit up over 100%.
* Positive trading updates from Altech and SecureData.
* Negative trading updates from Altron and Digicore.
* Net-1 UEPS acquired FIHRST Management Services, a company that offers third-party payroll payment solutions, for R70 million.
* Zaptronix bought I to I Technology Solutions, a company that manages the risk of its customers by providing digital video surveillance technology equipment, for R6.6 million.
* Zaptronix also purchased Cell Secure Holdings, a company that provides solutions to manage the business risk of its customers, for R6 million.
* Bluekey Software Solutions merged with KSO, a BI and information management specialist, and subsequently created a new subsidiary called Bluekey Predictive Intelligence.
* Itec, SA's third largest office automation company, invested in UK-based Portrayal and UK-based Peninsular Business Systems. Itec intends to merge the two UK companies, in which it has taken a significant share, and operate under the Portrayal name.
* Blue Label Telecoms is merging its local subsidiaries.
* The Dialogue Group Holdings will liquidate Dialogue SA, a subsidiary of the group.
* Rob Abraham was appointed CEO of Bytes Technology Group.
* David Redshaw retired as CEO of Bytes Technology Group (stays on as chairman of Bytes' UK operation).

Key international news

* The EU is opening an anti-trust inquiry into Google.
* CA acquired 3Tera, a company that sells cloud computing services.
* Genband purchased Nortel's division that makes network equipment for phone calls over the Internet. The deal was worth $182 million.
* Open Text bought Nstein Technologies, a provider of content management software, for C$35 million.
* VMware bought some of the assets of EMC's Ionix IT Management business, for $200 million.
* Good quarterly numbers from Blue Coat Systems, Brocade Communications and Salesforce.com (back in the black).
* Satisfactory quarterly results from CDC Software (back in the black), Garmin, Iron Mountain and Logica.
* Mediocre quarterly results from Opera Software.
* Mixed quarterly figures from Novell, with revenue down but profit up.
* Quarterly losses from Deutsche Telekom.
* The appointments of Dan Moloney (ex-Motorola) as CEO of Technitrol, a maker of electronic components; and Tony Zingale (ex-CEO of Mercury Interactive) as interim CEO of Jive Software, a social business software maker.
* A planned IPO from Kabel Deutschland, Germany's largest cable network provider.

Look out for

* International:
* Oger Telecom, the 'owners' of Cell C, taking a further stake in Turk Telecom. They already own 55%.
* Africa:
* Further developments regarding the Nitel takeover, especially since, despite an original denial, China Unicom has confirmed its 'interest'.
* South Africa:
* New faces at ICASA, including a new chairman.

Research results and predictions

* The worldwide server market for Q409 declined 3.9% to $13 billion, reports IDC.
* Worldwide mobile phone sales in 2009 dropped 0.9% to 1 211 million units, with Q4 showing an 8.3% growth, according to Gartner.
* Semiconductor sales in 2010 will grow 20%, predicts Gartner.

Final word

Over the recent holiday period, the Business Insider predicted 10 brands that will disappear this year. From a technology perspective, the 10 included Motorola, which is already planning a major split in its operations; Palm, which has been a potential target for some predators for several months and is taking severe financial strain; Eastman Kodak, which is likely to be snapped up by a private equity concern and restructured; and Sun Microsystems, which has already been sold off to Oracle.

I am currently away overseas on business. My next column, therefore, will be dated 15 March and will cover the intervening two-week period.

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