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Forget me not, says Google

The European Court's 'right to be forgotten' ruling could prove disruptive to the search engine.

Paul Booth
By Paul Booth
Johannesburg, 19 May 2014

The EU ruling regarding the 'right to be forgotten', and the Carphone Warehouse/Dixons merger were the key international ICT stories last week.

At home, the financial numbers from Altron, Cell C and Datatec, as well as the latest Dimension Data acquisition, stole much of the local ICT media space.

Key local news

* Good year-end figures from Altron, with revenue up 13.5% (back in the black); and from Cell C, with revenue up 14%, and subscriber numbers also well up (no EBDITA or profit figures available).
* Mixed year-end figures from Datatec, with revenue up 8.4% but profit down 50.7%.
* Dimension Data acquired Teliris, a cloud video managed services business.
* MB Technologies invested a majority stake in Cloud On Demand.
* SAS South Africa has opened a South African hosting centre in Johannesburg.

Key African news

* Good year-end figures from Safaricom, with revenue up 16.4% and profit up 31.2%; and from Telecel Global, with revenue up 10% and EBIDTA up 51%.
* IBM has opened its mainframe Linux and cloud innovation centre in Nairobi.

Key international news

Look out for the acquisition by AT&T of DirecTV in a deal that could be worth up to $50 billion.

* Acxiom bought LiveRamp, an advertising software start-up, for $310 million.
* Garmin purchased the assets of Fusion Electronics, a New Zealand-based provider of marine audio equipment.
* Google acquired Quest Visual, whose Word Lens appointment lets users translate signs with their smartphone camera.
* Intel bought the assets and talents of Ginger Software, related to its NLP technology and applications field.
* Intuit purchased Lettuce, an online inventory and order management app.
* Numericable acquired Virgin Mobile France, an MVNO, which comes close on the heels of its buy-out of SFR, France's second largest mobile operator. The deal was worth EUR325 million.
* Oracle bought Enkitec, an Oracle Platinum partner, in a move designed to expand the former's engineered systems capabilities.
* Yahoo purchased Blink, a mobile messaging start-up.
* Carphone Warehouse and Dixons Retail, two of the largest technology retailers in the UK, announced a £3.7 billion merger, in a deal that will see Sir Charles Dunstone, founder of the former, as chairman, and Sebastian James, CEO of Dixons, as CEO of the enlarged group.
* The European Court announced a 'right to be forgotten' ruling that could prove highly disruptive to Google.
* A settlement has been reached between Apple and Google (Motorola Mobility) regarding smartphone patent lawsuits.
* Very good quarterly figures from Tencent Holdings.
* Good quarterly numbers from Applied Materials (back in the black).
* Good year-end figures from NTT and Sharp (back in the black).
* Satisfactory quarterly results from Hon Hai Precision Industry, Quanta Computer and Trend Micro.
* Mediocre quarterly results from CA Technologies, Cisco, DoCoMo, Engility, Telecom Italia and Wind Italy.
* Mixed quarterly figures from Autodesk, with revenue up but profit down; Convergys, with revenue up but profit down; Rackspace Hosting, with revenue up but profit down; SingTel, with revenue down but profit up; and Tech Mahindra, with revenue up but profit down.
* Very poor quarterly figures from Acxiom, Asure Software and VimpelCom.
* Quarterly losses from Compal Electronics, Document Security Systems, NII Holdings and Overland Storage.
* A full-year loss from Sony and Weve, the UK mobile marketing and financial services company created by the UK's largest telecoms groups.
* The appointment of Andrew Ng, founder of Coursera, an online education company, to run the AI research labs of Baidu.
* An IPO filing on Nasdaq by MobileEye, an Israeli developer of collision-avoidance technology.
* A good IPO on the NYSE by Zendesk, a software development company that provides software-as-a-service customer service platform for organisations

Research results and predictions

Worldwide:
* The worldwide SCM and procurement software market grew 7.3% in 2013 to reach a little over $8.9 billion, according to Gartner.
* The worldwide application infrastructure and middleware software revenue market totalled $21.5 billion in 2013, an increase of 5.6%, according to Gartner.
* The worldwide application infrastructure and middleware market revenue grew 5.6% in 2013 to reach $21.5 billion, according to Gartner.
* Worldwide IT spending will increase by 4.1% this year, down from its previous forecast of 4.5%, as a result of emerging markets and mobile device slowdown, according to IDC.
* Worldwide client PC shipments reached 123.7 million units in Q1, up 5%, although tablet shipment growth slowed to 21%, with 50.8 million units, according to Canalys.

Stock market changes

* JSE All share index: Up 0.6% (highest-ever weekend close)
* Nasdaq: Up 0.5%
* NYSE (Dow): Down 0.6%
* S&P 500: Down a few points, but an all-time high of just over 1 900 was reached during the week
* FTSE100: Up 0.6% (during the week the index, at just over 6 873, was the highest reached since 1999)
* Top SA share movements: Altron (+14%), Ansys (+15%), Naspers (+9.2%), Pinnacle (-9.6%) and Prescient (+9.7%)

Look out for

International:
* A possible new chairman of Samsung Electronics following the hospitalisation of Lee Kun-hee, the current chairman. The unofficial 'heir' is vice-chairman, Jay Y Lee, son of the current chairman.
* The acquisition by Qualcomm of Israeli chipmaker Wilocity.
* The acquisition by AT&T of DirecTV in a deal that could be worth up to $50 billion.
* The acquisition by America Movil of the shares (44.6%) of Telekom Austria that are available on the stock market, in a deal that could be worth $1.9 billion. The former already owns 26.4%, with the Austrian government holding 28.4%.
* The outcome of the merger talks between Orange and Bouygues, as part of consolidation taking place in the French telecommunications market.

Africa:
* The sell-off by Mobinil (Egypt) of its tower assets.

South Africa:
* Further news on the Neotel/Vodacom deal and Telkom's links with MTN.

Final word

African Business magazine has published its annual 'Africa's Top 250 Companies' listing. The major changes from a technology perspective are as follows:

* Naspers and MTN, at number five and six, have switched places from last year as the top technology companies in the list.
* Safaricom up, at 26 from 47.
* Sonatel (Ivory Coast) at 30, up from 41.
* Telkom SA at 65, up from 110.
* Reunert at 84, down from 65.
* Datatec at 151, down from 128.
* Onatel (Burkina Faso) at 174, up from 225.
* EOH at 195, up from 243.
* Celtel Zambia at 198, down from 156.

However, it is interesting to note Altron, Blue Label Telecoms, Net 1 UEPS Technologies and Vodacom have not been included in the list, but based on the main criteria being market capitalisation, they certainly should have been!

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