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Last Updated : Nov 03, 2018 02:43 PM IST | Source: Moneycontrol.com

IT wrap: IBM’s Red Hat acquisition steals limelight; Tech Mahindra, Cognizant report Q2 earnings

The week saw some interesting local and global developments in technology, including results of Tech Mahindra and Cognizant, and interesting acquisitions by IBM and TCS

Neha Alawadhi @alnehaa
 
 
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The last week was about earnings and acquisitions.

During the week, two large technology services companies -- Tech Mahindra and Cognizant reported results, marking the near-end of IT earnings for the second quarter.

The week also saw Tata Consultancy Services make its first acquisition in four years, and IBM made its biggest acquisition ever- that of open source software company Red Hat.

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TCS bought London-based W12 Studios for an undisclosed amount, an acquisition, experts feel, will give the company an edge in competing with larger rivals Accenture, IBM and Cognizant in the design/marketing space.

Also Read: W12 acquisition to help TCS compete better in digital design space

Tech Mahindra and Cognizant, both reported results on October 30. Tech Mahindra beat analysts' average expectations backed by a strong pipeline and recovery in its communications vertical.

However, there was some unexpected weakness in the healthcare business as some projects came to a closure.

Also Read: Tech Mahindra Q2 profit beats estimates at Rs 1,064 crore; revenue at Rs 8,630 crore

The same day, US-based IT services major Cognizant reported September quarter revenue of $4.08 billion, up 1.74 percent from the previous three month period.

The company also recorded a $28-million loss accrual related to its India bribery discussions with US regulators. While not entirely unexpected, the amount was a little higher than what the market was prepared for.

Also Read: Cognizant reports 1.7% sequential revenue rise in September quarter

On October 28, IBM said it was buying open source company Red Hat for $34 billion, an acquisition that is likely to have some impact on India where both companies have a huge presence.

Also Read: IBM’s Red Hat acquisition: Here’s what the mega deal means for India

It is interesting how open source has been adopted by mainstream technology companies over the years. Champions of proprietary software such as Microsoft and IBM have embraced open source in a big way, with Microsoft becoming one of the lead contributors to the open source community after buying GitHub earlier this year.

Amid all these global developments, India earned a not-so-pleasant distinction as well- that of being the country with the highest number of Internet shutdowns- over a 100 in just 2018 alone.

The annual Freedom on the Net report looks at Internet freedom in 65 countries and measures Internet freedom score based on three parameters -- obstacles to access, limits on content and violations of user rights.

India fell two points on the scorecard this year and continued to have "partly free" Internet status.

Also Read:  India record highest number of Internet shutdowns in the world

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First Published on Nov 3, 2018 02:43 pm
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