December 20, 2004
Big News from Oracle, Telvent, Big Blue this Week
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Message from the Editor -
Welcome to GISWeekly!This week's Industry News would not be complete without a mention of the big news that Oracle bought PeopleSoft for $10 billion. In a recent
article in CNET.com Oracle announced Monday that PeopleSoft's board had agreed to a deal valuing PeopleSoft at $26.50 per share, higher than Oracle's "
final bid" of $24, and a roughly 10 percent premium over PeopleSoft's closing price Friday. What does this mean for GIS professionals?
Telvent GIT made the announcement that it has acquired a majority equity stake in Miner & Miner. Integrating real-time and enterprise IT is the goal here, which should reap tangible benefits for ArcFM users.
“Creating a global enterprise” was one of the goals behind I.B.M.'s sale of its PC division to China-based Lenovo Group this week. Also it frees the company up to pursue its services and software business.
Starting the first week of January 2005, IB Systems will launch AECWeekly on AECCafe. AECWeekly, a weekly newsletter pushed to the desktop, will use the same popular format as
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I am pleased that I have been asked to be Editor of the new AECWeekly in addition to my responsibilities as AECCafe Editor, GISCafe and GISWeekly Editor. For the past 15 years, I have enjoyed working as an editor and writer in the AEC publishing industry, as well as in the GIS industry. The new weekly will offer an opportunity for rich, insightful editorial and product overviews. All contact information for both publications will remain the same (see below).
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Susan Smith, Managing Editor
Big News from Oracle, Telvent, Big Blue this Week
By Susan Smith
This week's Industry News would not be complete without a mention of the big news that Oracle bought PeopleSoft for $10 billion. In a recent
article in CNET.com Oracle announced Monday that PeopleSoft's board had agreed to a deal valuing PeopleSoft at $26.50 per share, higher than Oracle's
"final bid" of $24, and a roughly 10 percent premium over PeopleSoft's closing price Friday.
The deal between the two companies is expected to close at the end of January. The merger should add about 1 cent per share to Oracle's bottom line starting in the fourth quarter of its fiscal year, and 2 cents per quarter in fiscal 2006, according to the company.
The plan is to integrate the PeopleSoft software into Oracle. The deal should be of interest to those GIS decision makers already using Oracle, who have the need for tighter integration with PeopleSoft and J.D. Edwards IT softwares. There is also the possibility that over the course of several years, perhaps, enterprise systems in numerous other more generic industries such as finance, retail, packing tracking, supply chain, etc. will become
spatially enabled. Oracle is already set up for this to happen; with its ability to manage various spatial types in Oracle 10g.
emergence of Oracle10g Spatial as a platform for a variety of spatial applications and services, is also coinciding with an emergence of new specialized tool vendors that leverage the native capabilities of the platform as a starting point for development."
More acquisitions in the news this week: Telvent GIT made the announcement that it has acquired a majority equity stake in Miner & Miner. Telvent specializes in solutions with high added value in four specific industrial sectors (Energy, Traffic, Transport and Environment) in the Americas, Europe, and China. The company focuses on SCADA, data acquisition subsystems, and operational applications for the industries it serves but also DMS, measurement and accounting, logistics, and revenue accounting applications in energy and water utilities. In addition, it has a strong portfolio of enterprises IT services, as well as GIS implementations. Based in Fort Collins, Colorado, Miner
& Miner is a key ESRI business partner that specializes in the electric, gas, and water/wastewater market. They are the developer of ArcFM, a GIS software solution for utilities that has been implemented at more than 180 utilities in North America and abroad. Under the terms of the acquisition, Jeff Meyers, president of M&M, and Jack Dangermond, president of ESRI, will retain an equity interest in the company.
The reason for the acquisition is to make ArcFM a more important component of the Telvent "Up the Hourglass" strategy. Initially, this plan is to enable users to realize operational and strategic benefits from integrating real-time and enterprise IT, providing ArcFM on a more global scale. Over the long term, Telvent hopes to be able to apply M&M technology to some of the other industry segments it serves. Miner & Miner will become a subsidiary of Telvent, North America.
The terms of this agreement can be read
Also in the
news, IBM will sell its PC division to China-based Lenovo Group and take a minority stake in the company in a deal valued at $1.75 billion.
The two companies plan to form a complex joint venture that will make Lenovo the third-largest PC maker in the world, behind Dell and Hewlett-Packard, but still give IBM a hand in the PC business. The deal is expected to be completed in the second quarter.
If the deal goes through, IBM will continue its shift from selling so-called commodity products to selling services, software and high-end computers. Although IBM made its name in the computer hardware industry and definitely put PCs on the map, I.B.M. makes little profit from PCs and often loses money. For the GIS market, I.B.M. has been focusing on software such as the
DB2 Extender technology which enables spatial analysis and access.
article, appearing in the New York Times, December 13, I.B.M. CEO Samuel J. Palmisano told a top Chinese official that I.B.M. was not merely looking to sell its PC business, but had bigger plans to create a global enterprise, with I.B.M. contributing technology, management, marketing and distribution. The idea was to build a “modern and truly international Chinese-owned corporation by investing abroad,” demonstrating “China's desire to take the next step toward economic maturity” instead of being solely a manufacturing hub for the rest of the world.
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-- Susan Smith, GISCafe.com Managing Editor.
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