Fri, May 8, 4:35 PM
- Tangoe (NASDAQ:TNGO) sold off today after slightly missing Q1 revenue estimates (while posting in-line EPS) and offering mixed guidance.
- The company has also announced it's buying IBM's Emptoris Rivermine telecom expense management (TEM) software business for an undisclosed sum. Tangoe declares Emptoris has a "global blue chip customer base," and complements its Matrix suite of cloud telecom asset/expense management apps. The deal is expected to close at month's end.
- Q2 guidance is for revenue of $56.5M-$57.5M and EPS of $0.18-$0.19 vs. a consensus of $58.4M and $0.19. Full-year guidance is for revenue of $245M-$250M and EPS of $0.73-$0.78 vs. a consensus of $239.7M and $0.79. Emptoris (naturally isn't factored into estimates) is expected to boost Q2 and full-year revenue by $1M and $10M, and hurt EPS by $0.01 and $0.04.
- Tangoe blames the Q1 sales miss on "quarter-to-quarter variability of non-recurring revenue," while insisting it's "the less strategic component of our business."
- Q1 results, PR
Mon, Apr. 13, 6:29 PM
- Looking to grab a bigger chunk of a burgeoning healthcare analytics market by offering more industry-specific solutions, IBM is buying Phytel, a provider of cloud-based patient data aggregation/analysis software, and Explorys, provider of a massive clinical database (said to consist of 315B datapoints) and a slew of analytics apps that run on top of them. Terms are undisclosed.
- IBM declares Phytel will help it give healthcare providers "insights into patient health from data about patient behaviors and their engagement with care plans," and that Explorys will "accelerate the delivery of IBM Health Cloud and IBM Watson cognitive solutions to model and apply medical evidence and large scale analytics to data."
- Both companies are being added to a new Watson Health unit based out of Boston. The business aims to provide software/services that can surface insights from large volumes of anonymous personal health data. As part of the effort, Big Blue is launching Watson Health Cloud, a platform that allows this data to be "anonymized, shared and combined with a dynamic and constantly-growing aggregated view of clinical, research and social health data."
- IBM's partnership with Apple (NASDAQ:AAPL) has been expanded to cover Apple's HealthKit (health/fitness data) and ResearchKit (medical research) frameworks, via Watson and Health Cloud. The latter will provide a data storage/aggregation platform for iOS apps using HealthKit and ResearchKit. In addition, IBM will "build a suite of enterprise wellness apps using HealthKit."
- Also: 1) IBM is partnering with Medtronic (NYSE:MDT) to create diabetes management solutions that pair Medtronic's devices (and the data they produce) with IBM's analytics and cognitive computing tools. 2) IBM is partnering with Johnson & Johnson (NYSE:JNJ) to "create intelligent coaching systems centered on preoperative and postoperative patient care, including joint replacement and spinal surgery."
Wed, Mar. 4, 9:29 AM
- IBM has acquired AlchemyAPI, a provider of software APIs for companies looking to add A.I./deep learning capabilities to their apps. Terms are undisclosed.
- AIchemy offers both cloud-based and on-premise versions of its API offerings, which cover image and text analysis tools. The company asserts its platform "makes it easy to create smart apps that deeply understand the world's conversations, reports and photos."
- IBM plans to integrate Alchemy's deep learning tech with its Watson A.I. hardware/software platform, declaring it will strengthen "Watson's ability to quickly identify hierarchies and understand relationships within large volume data sets." Big Blue also states the deal will "greatly expand the number and types of scalable cognitive computing APIs" available to clients, developers, and partners.
- The IT giant stated last year it wants Watson to produce $10B in revenue within 10 years - all signs suggest it has a ways to go. IBM rolled out the cloud-based Watson Analytics service last year to good reviews, as well as a cloud app development platform (Bluemix) that supports Watson services and APIs. It also bought a virtual assistant startup (Cognea) to help Watson deliver "conversational services."
Sun, Jan. 18, 12:57 PM
- TechCrunch reports Google (NASDAQ:GOOG) is interested in acquiring Softcard, the mobile payments platform launched by AT&T (NYSE:T), Verizon (NYSE:VZ), and T-Mobile (NYSE:TMUS) in 2010 - it was previously known as Isis, before changing its name for obvious reasons. Though Softcard's owners have invested hundreds of millions in the venture, sources state Google's purchase price could be below $100M.
- Like Apple Pay and Google Wallet, Softcard relies on NFC radios to enable transactions. And like Wallet, it has struggled to get off the ground, as U.S. consumers overwhelmingly stick with card swipes. Hard data on Apple Pay usage remains limited for now.
- Softcard recently laid off 60 employees. Meanwhile, it was reported in 2013 that Google had spent $300M on Wallet-related acquisitions, with little to show for it. The adoption of EMV (chip-and-PIN) readers by U.S. retailers could give NFC solutions a boost, by making card payments a little less convenient.
- The WSJ reports Google is partnering with consulting giant PwC to bid on a $2B+ contract to update the DoD's electronic health records system. PwC says Google's tools could both improve the system's security and performance, and lower costs. A group featuring IBM, HP (NYSE:HPQ), and CSC has made a rival bid.
- Ad tech firm Marin Software (NYSE:MRIN) provides some encouraging mobile search data ahead of Google's Jan. 29 Q4 report. A Marin study found mobile accounted for 49% of Q4 U.S. search ad spend, up from 42% in Q3, and that smartphone ad click rates were 38% higher than PC rates (thanks in part to accidental clicks?). On the other hand, mobile still only accounted for 32% of conversions.
- Medium writer Backchannel provides a deep dive into Google Search's evolution in an era where users increasingly want search engines to know the precise meaning of their queries. Part 1 looks at Google's efforts to optimize for mobile (aided by its Knowledge Graph and Google Now). Part 2 looks at Google's real-world research into the information needs of users. Part 3 looks at Google's investments in A.I./deep learning to deliver far more intelligent search results and spontaneously surface useful information.
Oct. 22, 2014, 4:15 AM
- Lufthansa (OTCQX:DLAKY) is close to selling its IT infrastructure unit to IBM (NYSE:IBM), including an outsourcing agreement for the services, as part of a restructuring to better position itself to compete with low-cost carriers and Gulf rivals.
- The move will reduce Lufthansa's annual IT costs by around €70M a year, but will result in a €240M ($305.2M) charge this year.
- Under the planned deal, Lufthansa will outsource all of its IT infrastructure services to IBM under a seven-year agreement. A final price for the sale is still being negotiated.
Oct. 20, 2014, 1:40 AM
- IBM (NYSE:IBM) has reached an agreement with Globalfoundries to take over its loss-making semiconductor unit, WSJ reports.
- Under the terms of the deal, IBM will pay Globalfoundries $1.5B to take the chip operations off its hands, a source says.
- IBM is scheduled to report Q3 earnings premarket.
- Previously: IBM to make 'major announcement,' release earnings Monday morning
Sep. 29, 2014, 2:00 AM
- Lenovo (OTCPK:LNVGY) will complete its $2.1B acquisition of IBM's (NYSE:IBM) x86 server unit on Oct. 1, giving China's biggest personal computer maker a major asset to expand its business client offerings.
- The closing purchase price is lower than the $2.3B valuation announced in January because of a change in the valuation of inventory and deferred revenue liability, says Lenovo.
Aug. 15, 2014, 4:20 PM
- The U.S. Committee on Foreign Investment (CFIUS) has signed off on the $2.3B sale of IBM's x86 server unit to Lenovo (OTCPK:LNVGY).
- The deal had been closely scrutinized due to the division's sales to U.S. government clients, sales which have included a decent number of supercomputer deals. IBM has tried to soothe concerns in part by promising it would continue handling maintenance work on Lenovo's behalf "for an extended period."
- Chinese regulators cleared the deal in July. Ahead of the sale, IBM's x86 server revenue fell 3% Y/Y in Q2, a much smaller decline than Q1's 18%.
Aug. 11, 2014, 11:44 AM
- IBM (IBM +0.7%) has bought Lighthouse Security, a provider of identity/access management software that sets permissions for cloud-based apps, for an undisclosed sum.
- News of the purchase comes two weeks after Big Blue disclosed it's buying CrossIdeas, an Italian identity/access software firm. Whereas CrossIdeas (with the help of an analytics platform) is used to control employee access to a company's internal apps and data, Lighthouse specializes in controlling employee and 3rd-party access to cloud apps, including ones not controlled by the company.
- "If you are on Facebook and LinkedIn and are a customer in my directory, I need to figure out who you are and interact with you in a seamless way," says IBM exec Kris Lovejoy, describing a use case for Lighthouse's software. Lighthouse's products (like CrossIdeas') will be integrated with IBM's existing identity/access management offerings.
Aug. 4, 2014, 6:58 PM
- Bloomberg reports IBM offered Globalfoundries $1B in cash to take the company's struggling chip manufacturing unit off its hands, and that Globalfoundries insisted on getting $2B.
- At issue: The unit is reportedly responsible for up to $1.5B/year in losses to go with its employee obligations, and Globalfoundries is said to assign little value to IBM's fabs. Rather, it's Big Blue's chip engineers and IP that mostly interest the foundry.
- Bloomberg previously reported IBM's talks with Globalfoundries broke down over price, but didn't state Globalfoundries was looking to be paid for making the acquisition. It added IBM was interested in a JV agreement that would allow it to retain control of chip design and IP development.
- Analyst Jim McGregor thinks a deal might still happen. "The first rule of negotiating anything is you need to be able to walk away from a deal ... This might just be posturing. You may see this resurrect itself in three to six months."
Jul. 31, 2014, 1:47 PM
- Italy-based CrossIdeas develops identity/access management security software that uses analytics and a constantly-updating data repository to prevent unwanted access to data and apps. IBM hasn't disclosed the acquisition price. (PR)
- The cybersecurity software space has seen plenty of M&A activity this year, as corporate demand from cybersecurity offering rises in the wake of a series of high-profile attacks. IBM plans to integrate CrossIdeas' tools with its existing identity/access management offerings.
- Security has been a bright spot for IBM: Its total security-related revenue rose 20% Y/Y in Q2, helped a bit by last year's acquisition of threat-prevention software firm Trusteer.
- Gartner estimates Big Blue's 2013 security software sales totaled $1.14B (+19.1% Y/Y), giving the company with a 5.7% share of the market (#3 overall)
Jul. 25, 2014, 3:53 PM
- Bloomberg reports IBM's (IBM -0.5%) talks to unload its struggling chip manufacturing unit to Globalfoundries have ended over differences on price.
- The news service reported in June IBM and Globalfoundries were close to a deal, while adding (citing a source) Big Blue's chip unit has been losing as much as $1.5B/year. Before that, the WSJ reported IBM originally wanted $2B+ for the business, but had seen initial bids closer to $1B.
- The unit's sales fell 18% Y/Y in Q2 amid ongoing share losses to TSMC and other foundry rivals. They fell 16% in Q1, and 33% in Q4.
- Bloomberg states IBM had become interested in a JV arrangement that would allow it to maintain control of chip design and IP development (while ridding itself of manufacturing). Two weeks ago, IBM promised to spend $3B over the next 5 years on advanced chip R&D.
Jul. 4, 2014, 4:42 AM
- Lenovo's (LNVGF) $2.3B deal for IBM’s (IBM) low-end server business has been approved by the the Chinese Ministry of Commerce's anti-monopoly bureau.
- The acquisition is still awaiting approval in the U.S., as the Committee on Foreign Investment in the United States investigates possible American national-security risks under the proposed deal, including concerns of the Pentagon's use of IBM servers.
Jul. 2, 2014, 1:56 AM
- Lenovo (LNVGF) is still expecting to close the $2.3B deal on IBM’s (IBM) low-end server business this year, although the acquisition is still being investigated by the U.S. for national-security risks.
- One of the main concerns is that IBM's x86 servers are used in U.S. communication networks and in data centers that support the Pentagon's computer networks.
- The company is also attempting to obtain regulatory approval to buy Google's Motorola Mobility, in another multi-billion-dollar acquisition valued at $2.9B.
Jun. 11, 2014, 11:22 AM
- Bloomberg's report follows an April WSJ report calling Globalfoundries "the lead candidate" to buy IBM's (IBM -0.6%) chip manufacturing/foundry ops. Notably, Globalfoundries is said to be more interested in Big Blue's chip engineers and IP than its relatively old wafer fabs.
- A source states the unit has been losing as much as $1.5B/year. Its Q1 sales fell 16% Y/Y amid continued share losses to Globalfoundries, Samsung, and foundry giant TSMC (TSM -0.5%).
- Nonetheless, the business claims high-profile foundry clients such as Cisco and Juniper, and has a history of leading the way in mass-producing new chip technologies/materials, such as silicon-on-insulator (SOI) and silicon germanium (SiGe).
- That could help Globalfoundries as it tries to gain ground against TSMC, which has a long list of blue-chip mobile processor, GPU, and FPGA clients.
- The WSJ's report stated the unit has received $1B+ bids - less than the $2B+ IBM was initially seeking.
May 19, 2014, 6:52 PM
- IBM has bought Cognea, a startup developing virtual assistants that interact with users via A.I.-based personalities. Terms are undisclosed.
- Big Blue plans to integrate Cognea's technology with its Watson A.I. hardware/software, with the goal of allowing Watson to deliver "conversational services." Potential end-markets mentioned by the company include "virtual personal assistants, health coaches, companions for elderly people, investment advisors, tutors, travel agents, customer care agents and shopping advisors."
- Google (Now), Apple (Siri), Nuance (Dragon Mobile), and Microsoft (Cortana) are few of the companies that have already made big investments in virtual assistant platforms.
- IBM, hungry to halt double-digit server revenue declines, promised to invest over $1B in Watson in January, including $100M in startups working on software/services for Watson systems. But while the company is hoping Watson produces $10B/year in revenue in ten years, the platform had only produced $100M in revenue as of last October.
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