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IBM bags Cognos

The $5 billion deal is the largest by value that IBM has completed.
Paul Booth
By Paul Booth
Johannesburg, 19 Nov 2007

The international world of ICT was dominated last week by IBM`s acquisition of Cognos, the largest deal done by the former. At home, the listing of Blue Label Telecoms, and Microsoft`s 10% investment in it, stole much of the local ICT media space.

Key local news of the past week

* Excellent year-end figures from Vox Telecom, with revenue and profit both up about five times.
* Excellent interim numbers from African Cellular Towers.
* Very good year-end figures from Paracon Holdings.
* Good year-end figures from Dimension Data, with revenue up 23% and profit more than double.
* Positive trading updates from Naspers and UCS.
* A negative trading update from Telkom SA.
* Vox Telecom acquired AmVia, a fax services provider.
* Netherlands-based mapping company Tele Atlas bought Georigin, its African rival, which also owns 49% of MapIT, a company that owns the right to a map database of Nigeria and SA. Tele Atlas is being acquired by TomTom.
* Blue Label Telecoms listed on the JSE. The company offers a wide variety of prepaid secure electronic tokens of value and provides transactional services.
* TeliMatrix listed on the JSE. TeliMatrix is focused on all levels of telematics, including fleet management products and services.
* A joint venture, ITQ Business Solutions, was created between Simeka BSG (50.1%) and Mindkey (49.1%), a bespoke outsource development company.
* Vodafone is likely to float Vodacom on the JSE following its acquisition of a major shareholding in the latter.
* South African investors have taken a 50% stake in the Seacom undersea cable off the east coast of Africa. The investors are Convergence Partners (12.5%), Neotel, Shanduka (12.5%) and VenFin (25%).
* Mustek was appointed distributor for Fujitsu Europe`s document scanners.
* Perry Hutton was appointed sub-Saharan Africa country manager for Fortinet, a provider of security appliances.

Key African news

* Kenyan authorities announced that four bids had been received for the 51% stake in Telkom Kenya. The bids were from France Telecom, Libya Africa Investment Portfolio, Reliance Communications (India) and Telkom SA, with France Telecom the successful bidder.
* Gulf-based Etisalat is eying Africa as part of its expansion programme.
* Portugal Telecom will sell more of its stake in Africa Holding, although still keep a majority shareholding.

Key international news

Worldwide telecommunications industry services revenue will reach $1.7 trillion by the end of 2008.

Paul Booth, MD, Global Research Partners

* Accenture purchased Maxim Systems, a defence consultancy business.
* AOL acquired Yedda, a leading semantic social search Q&A service.
* Dell bought Everdream, a provider of SaaS solutions for remote-service management.
* Deloitte purchased the identity and access management business of Iditarod Systems, a US consulting firm.
* EDS acquired Saber Holdings, a provider of software and services to US state governments, for $420 million.
* HP bought EYP Mission Critical Facilities, a consulting company specialising in strategic technology planning, design and operations support for large-scale data centres.
* IBM bought Cognos, the world`s second largest independent business intelligence company, behind SAS. The $5 billion deal is the largest by value that IBM has done.
* Microsoft acquired Musiwave SA, a provider of mobile music entertainment services.
* Qualcomm purchased Firethorn Holdings, a mobile banking services provider, for $210 million.
* Vodafone bought Perlico, an Irish provider of fixed-line voice and services.
* The Abu Dhabi government invested $622 million (8.1%) in AMD.
* Trend Micro will move its R&D centre from Japan to Taiwan, which is where the company is headquartered.
* VeriSign will focus on its core businesses, which include an Internet registry business and identity-protection services; and dispose of its remaining businesses that only account for 40% of its total revenue.
* Shantanu Narayen was appointed CEO of Adobe as Bruce Chizen resigned.
* An IPO filing on the NYSE from MagnaChip Semiconductor in a move that could raise over $550 million.

Look out for

* Japan`s NTT DoCoMo is willing to spend between $5 billion and $8 billion to acquire minority stakes in telecommunications operators in emerging markets.

Research results and predictions

* Handheld devices are down over 43% in Q307 as compared to Q306, with nearly 730 000 devices shipped, according to IDC.
* Worldwide telecommunications industry services revenue will reach $1.7 trillion by the end of 2008, according to the Insight Research Corporation.

Stock market changes

* JSE All share index: Down 3.4%
* Nasdaq: Up 0.4%
* Top SA share movements: Ansys (-10%), Beget Holdings (-20%), Ideco (+9.1%), Labat Africa (-9.5%), MICROmega (-13.8%), SAB&T Ubuntu (+17.6%) and Zaptronix (+20%)

Final word

According to Robert Half Technology, the top 10 paying jobs for 2008 will be the following, in descending order of pay: CIO, VP of IT, CTO, chief security officer, consulting/systems integration director, consulting/systems integration practice manager, database manager, IT manager, data warehouse manager, and applications architect.

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