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Multiple acquisitions by tech giants will bring divestment

19 May 2016

Marcela Kunova

Martin Scovell, CEO of MatsSoft, also says that access to information from wearables is causing concern at governement level.

 

What trends to you see in tech?

It’s simple. If customers want it you’d better provide it, or they’ll end up being someone else’s customer. However, IT departments are overwhelmed and Gartner say that demand for enterprise mobile app development is growing five times faster than there is capacity for. Businesses can’t recruit enough developers, and costs are rocketing with development queues growing in length. 

What are the big investment trends in wearable tech?

Health monitoring, smart-watch banking and wearable payments are all examples of wearable tech’ that will increase in volume in the corporate world. I believe that monitoring employee stress levels through health bands or smart watches could easily make sense in high risk industries like air transport and also on trading floors. However there is a growing public and governmental concern about use of personal and corporate data through wearables. Google’s search practices which may take into account wearable data use, are being reviewed by the European Union.

Tell us what is happening with global tech giants?

There is a reorganisation going on in the tech world because many IT companies that have grown through multiple acquisitions have found themselves to be overly complex. HP, who just split their business found that it had two radically different offerings under one roof: one half sold commodity products such as PCs and printers and the other half sold software and tech services. It was unwieldy and the split will allow each to focus on what it does best and serve customers better. Perhaps industry giants like Dell, IBM, SAP and Oracle will follow suit. Software companies like TIBCO, OpenText and Software AG also spring to mind as businesses that have diverse portfolios following years of acquisition.  Possibly, they will consider divestments to enable the constituent parts to innovate like they did before they got swallowed up by their motherships.

 

This article was published in Citywealth Weekly, our mid-week roundup of the hottest news and exclusive expert comments. Sign up here to start receiving the Weekly in your inbox.

 

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