{"id":42686,"date":"2021-12-17T14:38:46","date_gmt":"2021-12-17T14:38:46","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=def11bf8fcc878062914d7a4e702cded"},"modified":"2021-12-17T14:38:46","modified_gmt":"2021-12-17T14:38:46","slug":"the-most-significant-industry-moves-of-2021","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/the-most-significant-industry-moves-of-2021\/","title":{"rendered":"The most significant industry moves of 2021"},"content":{"rendered":"


\n Jonathan Weinberg<\/a><\/span>
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26 Dec, 2021<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

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As another turbulent and unprecedented 12-month period wraps up, we can look back at a busy year for the tech industry. A handful of household names pursued mergers, acquisitions, spin-offs and strategical overhauls<\/a>, with many striving to become a stronger force on the world stage. Other deals, meanwhile, became mired in regulatory issues.\u00a0<\/p>\n

From Facebook<\/a> to Intel<\/a>, and from Microsoft<\/a> to Salesforce<\/a>, 2021\u2019s most significant industry moves will have repercussions for years to come. We look back at a handful of the loudest to examine why these moves were so important, and what each one means for the future of the industry.<\/p>\n

Intel launches $20 billion manufacturing roadmap\u00a0<\/strong><\/h2>\n

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When Intel announced in March it was to invest $20 billion<\/a> into two new Arizona factories, the US chipmaker\u2019s CEO, Pat Gelsinger<\/span>, described it as \u201csetting a course for a new era of innovation and product leadership\u201d.<\/p>\n

The continued chip shortage<\/a> has wreaked havoc on the production of everything, from laptops, smartphones and tablets to gaming consoles and even cars. Boosting manufacturing capacity and economies of scale seem a natural response to that, assuming Intel can get hold of enough of the necessary raw materials, given the global supply chain crunch. The sector, of course, has also been hit by an increase in the price of copper.<\/p>\n

The launch of Intel Foundry Services (IFS), which aims to make the company a major provider of foundry capacity in the US and Europe, is also a key factor, given its plan to make custom chips for tech firms and national governments.<\/p>\n

Where\u2019s the strategic value?\u00a0<\/strong><\/h3>\n

The pandemic hugely increased demand for technology that could power the massive remote working shift across the world. Chipmakers will be instrumental to that change and need to be ready and flexible to take advantage. Intel is in a tight race for supremacy with Nvidia<\/a>, and also needs to compete with the likes of Taiwan Semiconductor Manufacturing Company Limited (TSMC<\/span>) and Samsung. In light of geopolitical tensions, this move is, in part, a bid to ensure more is made in the US.<\/p>\n

According to the Semiconductor Industry Association<\/a>, US-based fabs account for just 12% of the world\u2019s manufacturing, down from 37% in 1990. There are also restrictions and sanctions on China\u2019s largest chip manufacturer, Semiconductor Manufacturing International Corporation (SMIC<\/span>), put in place by the US Department of Commerce. In mid-December, Intel also announced it will invest more than $7 billion<\/a>\u00a0to develop a new chip-packaging and testing factory in Malaysia.<\/p>\n

Salesforce bets big on collaboration with $27.7 billion Slack acquisition<\/strong><\/h2>\n

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As we entered 2021, Salesforce announced it would acquire Slack<\/a>, the popular workplace collaboration platform with more than 10 million active users daily<\/a>.<\/p>\n

Marc Benioff\u2019s<\/span> software giant, whose customer relationship management (CRM<\/span>) platform is used by 150,000 companies, heralded it as a \u201cmatch made in heaven\u201d while Slack CEO Stewart Butterfield hailed the \u201cmost strategic combination in the history of software\u201d.<\/p>\n

Where\u2019s the strategic value?\u00a0<\/strong><\/h3>\n

The world of work is changing beyond all recognition thanks to remote working and greater flexibility \u2013 and that means workplace collaboration<\/a> software will be critical to productivity and growth.<\/p>\n

Joining forces gives both Salesforce and Slack much greater capacity to compete<\/a> against the likes of Microsoft Teams and Facebook Workplace, offering the sort of software and functionality that would prove complementary to each of its customer bases.<\/p>\n

Nvidia and Arm\u2019s $40 billion bid to own the age of AI<\/strong><\/h2>\n

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Combining a company with the artificial intelligence (AI)<\/a> strength of Nvidia with the semiconductor prowess of Arm seems a no-brainer<\/span>.\u00a0<\/p>\n

When the deal was announced in September 2020, Jensen Huang, founder and CEO of Nvidia, said: \u201cIn the years ahead, trillions of computers running AI will create a new Internet of Things (IoT)<\/a> that is thousands of times larger than today\u2019s internet<\/span> of people. Our combination will create a company fabulously positioned for the age of AI.\u201d<\/p>\n

The move hasn\u2019t panned out as either company will have hoped, however, and has since been endangered by a thorough regulatory process in the UK.<\/p>\n

Where\u2019s the strategic value?\u00a0<\/strong><\/h3>\n

As Huang pointed out, the value lies in the future, with technology set to become more connected than ever. In the coming years, smart devices and appliances will become the norm, while sensors will power smarter cities, using AI alongside the wealth of data they gather from the likes of shops, roads, buildings, and factories to drive both government and business decision-making and direction.<\/p>\n

Given the size and scope of the deal, however, 2021 has seen it attract a continued amount of regulatory scrutiny. The UK has put Cambridge-based Arm under the spotlight due to fears over competition and national security. Read more about that investigation, by the Competitions and Market Authority (CMA)<\/a>, here. It was also announced in December 2021 how the Federal Trade Commission (FTC) is also seeking to block the takeover<\/a>.<\/p>\n

IBM officially launches Kyndryl<\/span> spin-off<\/strong><\/h2>\n

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In November, IT services firm Kyndryl<\/span> completed its spin-off from IBM. Alastair Edwards, chief analyst for channels analysis at Canalys<\/span>, told Channel Pro<\/em><\/a> how removing the IBM shackles would allow it to work with a broader range of technology vendors. This would allow Kyndryl<\/span> to enjoy \u201cthe agility to focus on what they\u2019re really interested in, which is obviously cloud, AI, and other technology areas that they\u2019re doubling down on\u201d.<\/p>\n

Where\u2019s the strategic value?\u00a0<\/strong><\/h3>\n

The true value of the spin-off remains to be seen. Experts suggest, though, Kyndryl<\/span> will face fierce competition from managed cloud service providers. By focusing on its specialisms, however, it could carve out a newer niche and premium role for itself.\u00a0<\/p>\n