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IBM buys Sterling

The deal with Sterling Commerce, a subsidiary of AT&T, was worth $1.4 billion.

Paul Booth
By Paul Booth
Johannesburg, 31 May 2010

The local and international ICT markets were quiet last week, with IBM's acquisition of Sterling Commerce taking pride of place globally. The controversy relating to Blue IQ dominated the local ICT media space.

Key local news of the past week

* Very poor interim numbers from Ideco, with revenue up 42.8% but just back in the black.
* Satisfactory full-year numbers from ISA, with revenue up 3.5% and profit up 28%.
* Mixed year-end figures from DTH, with revenue up 19.6% but profit down 22.5%.
* A positive trading update from Huge Group.
* Negative trading updates from Mix Telematics, Stella Vista and Zaptronix.
* Atio acquired Netcampus Collaborative Learning Solutions, a fully-accredited international online provider of innovative technical training products and services from major international courseware vendors.
* Vunani Technology Ventures made a 51% investment in Jala Group, an ICT-focused investment company.
* The Gauteng government will merge Blue IQ with two of its other entities, the Gauteng Enterprise Development Agency and the Gauteng Enterprise Agency.
* Thami Mtshali was appointed CEO of iBurst, which is in addition to his role as executive chairman of the company.
* Jannie van Zyl resigned as CEO of iBurst.

Key African news

* Good quarterly numbers from Safaricom, with revenue up 19% and profit up 44%.
* Orascom Telecom will talk with the Algerian government regarding the selling of its stake in Djezzy, its Algerian unit.

Key international news

The Gauteng government will merge Blue IQ with two of its other entities.

Paul Booth, MD, Global Research Partners

* Avnet purchased Unidux, an electronic components distributor primarily serving Japanese OEMs. Avnet has annual revenue of almost $18 billion and is the third largest US-based distributor, behind Ingram Micro and Tech Data.
* IBM bought Sterling Commerce, a business-to-business subsidiary of AT&T, for $1.4 billion. Sterling Commerce was originally acquired by SBC Communications for $3.9 billion in 2000, the latter itself being merged with AT&T in 2005. IBM has been a partner of Sterling Commerce for many years. Sterling Commerce was an IPO spin-off from Sterling Software in 1996, a company subsequently acquired by CA Technologies in 2000.
* McAfee acquired Trust Digital, a provider of enterprise mobility management and security software solutions.
* Xerox bought HP's benefits and moving services business unit, ExcellerateHRO.
* Yahoo purchased Koprol, a location-based social network business in Indonesia.
* Apple has overtaken Microsoft as the largest technology company by market value.
* A strategic partnership between Nokia and Yahoo was announced.
* Excellent quarterly results from Lenovo (back in the black) and NetApp.
* Good quarterly numbers from Blue Coat Systems (back in the black).
* Mediocre year-end results from Cable & Wireless Communications.
* Mixed quarterly figures from Novell, with revenue down but profit up.
* Quarterly losses from QAD.
* A full year loss by Cable & Wireless Worldwide.
* Phillipp Humm was appointed CEO of T-Mobile USA.
* Robert Dotson resigned as CEO of T-Mobile USA.

Look out for

* International:
* A possible investment in Patni Computer (India) by a private equity company.
* Africa:
* The entry of Saudi Telecom as a suitor for Vodafone's stake in its Egyptian venture with Telecom Egypt.
* South Africa:
* Possible renewed interest in MTN by Reliance Communications.

Research results and predictions

* Worldwide shipments of media tablets, such as the iPad, will reach 7.6 million this year, according to IDC.
* PC shipments in 2010 are expected to reach 376.6 million units, up 12% from 2009, according to Gartner.
* Worldwide server shipments grew 23% in Q110, with HP taking over the top slot from IBM, reports Gartner.
* Worldwide mobile PC shipments grew 43% in Q110, with Acer significantly closing the gap on HP, according to Gartner.

Stock market changes

* JSE All share index: Up 3.6%
* Nasdaq: Up 1.3%
* Top SA share movements: African Cellular Towers (-11.1%), Altech (-9.1%), Beget Holdings (-33.3%), ConvergeNet (+20.7%), Digicore (-9.1%), Ifca Technologies (-25%), ISA (+9.1%), Mix Telematics (+11.2%), Vox Telecom (-9.4%) and Zaptronix (-25%)

Final word

The one leadership competency above all others that CEOs identified was that of creativity, according to a survey from IBM's Institute for Business Value.

BusinessWeek has just published its 2010 Tech 100 listing. From a technology perspective, Apple came in at number two, Tencent Holdings at number three, Tata Consultancy Services at five, CenturyLink at seven, Cognizant Technologies at eight, Infosys Technologies at nine and Softbank at 10. Also in the top 25 were (in alphabetical order) China Mobile, Google, NTT- Data, Oracle, Research In Motion, Samsung and Wipro.

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