Microsoft focuses on Europe to expand its cloud offering
Microsoft is investing heavily in cloud computing across Europe, and CEO Satya Nadella plus President Brad Smith have been touring the continent extolling the company’s latest virtues.
According to Nadella, the American software giant has more than doubled its cloud capacity in Europe over the past 12 months, and invested $3 billion to date. The company plans to deliver its Microsoft Cloud services from French datacenters as of next year. These latest investments will aid some of Microsoft’s biggest customers – including the UK’s Ministry of Defence, the Renault-Nissan Alliance, Ireland’s Health Service Executive, and ZF Germany – to innovate and lead in their various industries.
Microsoft Cloud services are currently available from UK and German datacenters, and the French addition will further cement the company’s presence in Europe. There are also now hubs in the Netherlands, Ireland, Austria, and Finland.
Nadella and Smith are pressing heavily forward with their vision of a global service. Microsoft has released a new book entitled ‘A Cloud for Global Good’, further outlining its commitment to making the cloud more trusted, responsible, and inclusive.
“We continue to invest heavily in cloud infrastructure to meet the growing demand from European customers and partners,” said Nadella. “Building a global, trusted, intelligent cloud platform is core to our mission to empower every person and organization on the planet to achieve more. There’s never been a better time for organizations across Europe to seize new growth and opportunity with the Microsoft Cloud.”
Follow @BizReviewUSA and @NellWalkerMG
Read the September issue of Business Review USA & Canada here
M&A activity key lever for future tech sector growth
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.