InSight

Exit and Growth Strategies for Middle Market Businesses

Industry News From Technology, Media & Telecom

By Dan Vermeire | Sep 28, 2015

Technology, Media & TelecomThere appears to be no end in sight to M&A activity in the ever-evolving Technology, Media & Telecom space as new applications, software and hardware continue to have meaningful global impacts. Demand for software applications for smartwatches and other wearables is expected to increase as more consumers and businesses adopt the devices. The recent launch of a wearable computing device by Apple could jumpstart the smartwatch category, creating new opportunities for software developers. The company launched a line of Apple Watches in nine countries in April 2015. Combining the functionality of a timepiece with communication capabilities and health-related applications, the devices will compete against offerings from LG, Pebble, Samsung, and Sony, among others. The burgeoning list of applications for the Apple Watch already includes business, home automation, music, news, sports and travel apps, and the device’s long-awaited debut is expected to spur development efforts across the market. Good Technology, Microsoft, and Salesforce.com are among the companies developing collaboration, productivity, and sales apps for the Apple Watch, according to Network World. Game makers are also targeting the Apple Watch and other wearables, despite the challenge presented by the devices’ small screen size.

Demand for enterprise software will drive overall IT spending growth during 2015, according to a recent report from Gartner. The market research firm forecasts worldwide spending on enterprise software will increase 5.5 percent year-over-year in 2015, reaching $335 billion. Outpacing the projected 2.4 percent increase in overall IT spending, the uptick in global software expenditures is expected despite growing pricing pressure in key market segments such as customer relationship management (CRM) and database management, where a shift to cloud-based offerings is fueling competition between incumbent enterprise vendors and a host of newer cloud specialists.

  • US retail sales for electronics and appliance stores, a potential measure of demand for computer software, decreased 1.2 percent in the first seven months of 2015 compared to the same period in 2014.
  • Total US revenue for computer systems design and related services rose 4.6 percent in the first quarter of 2015 compared to the previous year.

Posted by Dan Vermeire.


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