May 19, 2020

GE and Microsoft collaborate to enhance connectivity

GE
cloud technology
Satya Nadella
Microsoft
Sumit Modi
2 min
GE and Microsoft collaborate to enhance connectivity

GE and Microsoft have announced their intentions to partner up, making GE’s Predix platform for the Industrial Internet available on Microsoft’s Azure Cloud.

This is the first step in a much larger collaboration between the two companies, enabling global customers to take advantage of Microsoft’s enterprise cloud applications.

Businesses are always looking for new ways to connect their technology, and bringing Predix to Azure allows greater choice and flexibility for customers, securely harnessing the power of data between systems of intelligence.

Jeff Immelt, CEO of GE, said: “Connecting industrial machines to the internet through the cloud is a huge step toward simplifying business processes and reimagining how work gets done.

“GE is helping its customers extract value from the vast quantities of data coming out of those machines and is building an ecosystem of industry-leading partners like Microsoft that will allow the Industrial Internet to thrive on a global scale.”

Microsoft CEO Satya Nadella said: “Every industry and every company around the world is being transformed by digital technology. Working with companies like GE, we can reach a new set of customers to help them accelerate their transformation across every line of business — from the factory floor to smart buildings.”

A video of Satya Nadella and Jeff Immelt discussing the announcement on stage at the Microsoft Worldwide Partner Conference can be viewed here.

 

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May 15, 2021

M&A activity key lever for future tech sector growth

Technology
dealmaking
EY
M&Aactivity
Kate Birch
2 min
With M&A activity in the technology sector soaring, dealmaking is likely to be the key lever for growth as businesses look to recover post-pandemic

Despite the continuing uncertainty of the pandemic, the tech sector has witnessed soaring dealmaking activity over the past year, rocketing in the second half of 2020, with the last quarter of 2020 a record one for M&A activity, and momentum continuing into 2021.

Dealmaking in tech sector soars in past year

And the latest figures bear this out with the number of technology M&A deals totalling US$208.44bn globally in Q1 2021, according to GlobalData. While the US holds top spot both in volume of deals (1034) and total value (US$140.61bn), Europe ranked next with 649 deals (US$44.49bn) with the UK continuing its reign as Europe’s biggest M&A market with 204 deals.

In particular, megadeals – those valued at US$5bn or more – soared in 2020 representing 59% of all global technology sector deal value in 2020, up from 47% in 2019, according to the latest edition of the EY Technology Global Capital Confidence Barometer.

This tech sector trend towards megadeals is backed up by EY’s CCB data, with 16% of tech sector respondents planning to pursue transformative deals valued at US$5bn or more in the near-term.

While technology deal activity “all but stopped at the beginning of 2020 after fluctuating between historic highs and lows, companies pivoted quickly and tech M&A exploded in the second half of the year”, says Barak Ravid, EY Global TMT Leader for Strategy and Transactions. 

M&A activity level for tech sector growth

Looking ahead to the future, technology executives are optimistic, with nearly half (47%) expecting profitability to fully rebound this year, according to CCB data, compared to 23% across all sectors, and with more than half (51%) planning to pursue M&A in the next year in order to sustain growth.

According to Ravid, M&A activity is increasingly becoming a key lever for growth as businesses look to recover.

“To position themselves for future revenue growth, tech companies are now adjusting their M&A strategy to focus more on a target’s business resilience, digital technology alignment and to gain market share through consolidation,” says Ravid.

However, with an increasingly competitive deal market and ongoing geopolitical tensions, the majority of tech execs expect to see more competition in the bidding process for assets over the next year, primarily from private capital.

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