It seems like a crazy decision by UK voters, but they did it.
The recent M&A activity in the European colocation market is consolidating market share amongst a few industry leaders while leaving smaller regional providers to concentrate on diversification or niche solutions. Some of the factors driving this recent activity are the changing data privacy regulations, increasing demand for high-quality data center space, latency concerns, and a need to differentiate – with footprint, connectivity or services.
Deep Dive: Data Breach - Is it Already Too Late?
We saw a record number of mergers and acquisitions in 2105, many technology-based companies were looking to either grow specific verticals and service segments or just consolidate resources in order to gain efficiencies. The level of competition in this industry is high and there is a lot of pressure to innovate in order for companies to survive in the marketplace.
As cyberattacks grow more and more sophisticated, IT security has become an arms race with businesses scrambling to keep up with the latest attack method. In a response to this trend, security providers are increasing the sophistication of their solutions, and in some cases acquiring other security specialist companies in order to expand their offering. The managed security sector will continue to see fast-paced growth, valued at $14.3B in 2014 with expected growth to $31.9B by 2019.
Similar to what we have seen with other cloud-based service providers, Unified Communications companies have been merging in an attempt to gain market share and become more competitive. This market will continue to evolve as technology changes, new applications emerge, and more enterprise companies invest in updating their communication capabilities in the coming years. We look forward to seeing the evolution and who comes out on top.
The cloud front has been active with mergers and acquisitions for the past few years, it’s no surprise that 2015 brought more consolidation to this marketplace. The highest price tag of the year was an acquisition for$67 billion, paid by Dell for EMC, including its VMware virtualization software. Some analysts predict that the high valuations of technology companies seen in recent years will fade or even crash. We look forward to seeing how the cloud industry changes in the coming years.
Many international telecom companies were on a mission similar to their US counterparts last year - build scale and cut costs. Much of the consolidation activity centered on whittling down the number of telecom companies per country. In many European markets there are often four or more competitors. Some international executives were also looking abroad at US-based telecom companies that might be acquisition targets. In the US there are fewer competitors and a larger share of profits to be had.
Telecommunications is one of the most profitable and rapidly developing industries in the world and it’s regarded as an indispensable component of the utility and services sector. Why all the M&A action within this industry? This type of activity can be helpful to Telecom companies that are interested achieving greater market share and maximizing economies of scale. The majority of Telecom Service Providers understand that M&A is a quick way to grow their footprint.
We wanted to share a recent blog post from one of our partners, Cloudyn.
The recent decision made by the European Court of Justice to invalidate a major, 15 year-old data-sharing agreement sent shock waves across the Atlantic. American companies like Facebook, Google, and Twitter that have historically transmitted information between the US and Europe may be prohibited from doing so in the future.
An organization’s cybersecurity policy and controls must be created so they are easily adaptable to new emerging threats.