Technology, media, and telecommunications M&A update: Q2 2018
As Big Data makes its way into more and more industries, 5G technology, Artificial Intelligence, and Internet of Things are making a large impact in helping with analyzing and optimizing that data. This Technology, Media, and Telecommunications (TMT) mergers and acquisitions (M&A) update provides Deloitte Corporate Finance LLC insights and market data analysis that shed light on M&A trends in the TMT industry.
- 5G and the internet of things (IoT)1: 5G technology promises to bring reliability, latency, scalability, security, and ubiquitous mobility, making it a key component of the communications and connectivity of the IoT technology stack. It is expected that the IoT universe is expected to consist of 20 to 30 billion connected devices by 2020.
- Artificial intelligence (AI)2: AI is expected to be added to targeted financial management application functionality to improve and automate complex tasks with almost no human intervention. This will use analytics and predictive models, combined with machine learning, to perform value-add processes.
- Automotive technology3: With the development of more connected vehicles that offer a consortium of luxurious add-ons, there is an increased focus on collecting and storing data. Big Data has found a home in automotive technology, ranging from product design and manufacturing to autonomous driving. According to ABC and CBS, researchers estimate that Big Data investments in the industry will account for more than $3.3 billion in 2018(E).
- Software-as-a-Service (Saas)4: The ongoing and increasing adoption of SaaS is disrupting the software market, as hybrid SaaS providers spend on average 30 percent to 40 percent less than pure-play SaaS providers. According to Gartner, a wide range of vendors now provide SaaS applications, whereas others are incorporating add-on cloud solutions while continuing to capitalize on perpetual license revenue.
This newsletter is a periodic compilation of certain capital markets information.
1 i-SCOOP, 5G and IoT in 2018 and beyond: the mobile broadband future of IoT, 2018, https://www.iscoop.eu/internet-of-things-guide/5g-iot/, accessed July 11, 2018.
2 Gartner Research, Predicts 2018: SaaS financial management applications increase integration, automation and sophistication, November 1, 2017, https://www.gartner.com/doc/3823263/predicts--saas-financial-management, accessed July 11, 2018.
3 Wise Guy Reports, Big Data in the automotive industry: 2018-2030—opportunities, challenges, strategies & forecasts, June 15, 2018, https://www.wiseguyreports.com/reports/3286529-big-data-in-the-automotiveindustry-2018-2030, accessed July 11, 2018.
4 Gartner Research, Market trends: the transformative impact of SaaS on the software market, January 5, 2018, https://www.gartner.com/doc/3843070/market-trends-transformative-impact-saas, accessed July 11, 2018.