Tag Archive for Business

Record Breaking Proofpoint Buyout

Record Breaking Proofpoint buyoutThoma Bravo agreed to a record breaking Proofpoint buyout. The Chicago-based private equity firm plans to buy out publicly traded cybersecurity company Proofpoint (PFPT). The cash deal values Proofpoint at $12.3 billion. Thoma Bravo has agreed to acquire the company with a $176.00 per share price. That is a 34% premium to its trading price starting 04/23/2021.

Proofpoint buyout

Proofpoint Chief Executive Gary Steele told MarketWatch

Proofpoint logo…in 2020 we generated more than $1 billion in annual revenue – making Proofpoint the first SaaS-based cybersecurity and compliance company to reach that milestone

The board of directors of Proofpoint has approved the Proofpoint buyout agreement, including a deadline called the go shop, which expires on June 9th. This means that the company has 45 days to consider proposals from other parties.

About Proofpoint

Former Netscape CTO Eric Hahn, founded Proofpoint in June 2002. He helped launch the company in 2003 having raised $7m in a Series A funding round. Proofpoint was initially backed by venture capitalists Benchmark Capital and by Stanford University. In 2012, the company went public with an IPO which raised more than $80m.

About Thoma Bravo

Thoma Bravo logoChicago’s Thoma Bravo specializes in technology deals. The PE firm has previously made investments in SolarWinds, a software company that is in the midst of a huge cyberespionage campaign. Thoma Bravo has also bought up controlling stakes in cybersecurity companies in the past, including:

  • Barracuda in a 2017 deal worth $1.6 billion;
  • Imperva for $2.1 billion in October 2018; 
  • Sophos in 2020 for $3.9 billion.

rb-

This is a big deal. The $12.3 billion price tag makes it the biggest cybersecurity acquisition of all time. More than the $7.68 billion Intel shelled out for McAfee 11 years ago. And VentureBeat estimates that the Proofpoint acquisition represents one of the biggest overall technology acquisitions ever, putting it in the top 20, alongside megadeals that include Dell’s $67 billion EMC purchase, IBM’s $34 billion Red Hat deal, and Salesforce’s pending $27.7 billion Slack acquisition.

Stay safe out there !

Related article

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers and anything else that catches his attention since 2005. You can follow him at LinkedInFacebook and Twitter. Email the Bach Seat here.

VMware Spinoff

VMware SpinoffThe rumor mill got it right again. On Wednesday 04/15/2021 Dell Technologies confirmed the long speculated plans to spinoff VMware. The VMware spinoff will create two standalone public companies. Dell will continue to trade on the NYSE as DELL and VMware will trade as VMW.

Cash dividend of up to $12 billionThe deal includes a VMware cash dividend of up to $12 billion to all VMware shareholders, including Dell Technologies. Dell owns an 81% stake in VMware. Dell took over VMware when it acquired EMC in September 2016 for $58B. The VMware spin-off could yield Dell up to $9.7 billion to pay down its long-term debt of $41.62 billion. Dell shareholders would receive 0.44 shares of VMware for each Dell share that they hold as of 04/14/2021.

VMware spinoff

TechCrunch observes that the VMware spinoff will not be a clean break. The companies will continue to work closely together at least for another five years. VMware plans to sell its products through the Dell sales team. Dell Financial Services will continue to finance VMware deals. Finally, there is a formalized governance process in place related to achieving the commercial goals under the agreement.

VMware spinoff will not be a clean breakThe VMware spinoff is expected to close during the fourth quarter of calendar 2021, pending a favorable IRS ruling. TechCrunch says  That includes getting a favorable ruling from the IRS that the deal qualifies for a tax-free spin-off, would be a considerable hurdle for the deal.

VMware spinoff changes at the top

Dell Technologies founder and CEO Michael Dell will continue to lead the PC giant. He will also remain chairman of VMware’s board.Mr. Dell said in CEO-speak;

Dell logoBy spinning off VMware, we expect to drive additional growth … and unlock significant value for stakeholders. Both companies will remain important partners … differentiated advantage in how we bring solutions to customers … embrace new opportunities through an open ecosystem …

Zane Rowe will remain interim CEO of VMware, as the virtualization company continues to evaluate permanent CEO options to succeed Pat Gelsinger — who left the virtualization juggernaut for Chipzilla earlier this year.

Zane Rowe interim CEO of VMwareMr. Rowe told Reuters the spinoff could also allow VMware to strike more partnerships with major cloud computing providers. “This will clearly give us a lot of flexibility strategically to do more partnerships.”  The VMware spinoff will allow the independent firm to pursue deals with Amazon and Microsoft, which are Dell’s primary technology competitors.

Dell financial maneuvers

Founded in 1984, Dell initially went public in 1988. Through a record-breaking leveraged buyout Dell returned to private ownership under Michael Dell in 2013. After buying EMC in 2016, Dell again undertook a complex financial move to become public again to help the company raise funds.

VMware

VMware logoVMware was founded in 1998 and acquired by EMC in 2004. EMC sold part of its stake in an initial public offering in 2007. EMC’s holdings in VMware passed to Dell when it acquired EMC in 2016 in the largest successful acquisition in the technology industry.

rb-

In another effort to slim down the company, Dell is exploring options to selling its Boomi cloud business for $3 billion. Dell Technologies sold Boomi for about $4 billion. The proceeds should help Dell reduce its debt. The data integration company is being purchased by the investment firm Francisco Partners along with the private equity firm TPG Capital. The sale is expected to close by the end of 2021.

Boomi provides a cloud-based integration platform as a service (iPaaS) for more than 15,000 customers. Dell acquired Boomi in 2010.

Stay safe out there!

Related article

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

8 Ways to Fight Zoom Anxiety

8 Ways to fight Zoom AnxietyAfter a year of the COVID-19 pandemic and  working from home until September 2021, video conferencing has become a fundamental part of everyday life. However, not everyone has overcome Zoom anxiety. Zoom anxiety is defined as “a feeling of panic when asked to jump on a video call.” For some people, the prospect of a video call can bring up a deep feeling of dread, especially if required to present. Combined with other stressors linked with the pandemic, lockdown and job insecurity, Zoom anxiety can prove debilitating to some people.

Zoom anxietyAccording to a study from presentation specialist Buffalo 87, “Zoom anxiety” has become a serious problem for many.  Zoom anxiety afflicts people, for many reasons. James Robinson, Marketing Manager at Buffalo 7 says 73% of respondents reported struggles with Zoom anxiety, “…it’s clear that for many video calls bring their own set of challenges.

Who has Zoom anxiety?

The study published at TechRadar identified a number of reasons for Zoom anxiety. 83% of Zoom anxiety sufferers worried that a potential technical glitch that cannot be easily fixed might occur. They expressed concerns about holding up clients and colleagues, as well as revealing their incompetence. In addition:

  • 67% worried about the inability to read body language effectively.
  • 56% were concerned they haven’t been heard.
  • 41% fretted about insufficient time to prepare an appearance.
  • 34% stressed about the unprofessional nature of the background.

A study out of Stanford University identified four reasons why so many people suffer from Zoom anxiety.

1- Too Much Eye Contact

Emma Russell, a senior lecturer in occupational and organizational psychology at the University of Sussex explained. “We are attending to a number of faces staring right at us, and our face is also on-screen for all to see.” 

faces staring right at usGéraldine Fauville, a researcher at Stanford explains, “During video conferences, you have this impression that everyone on the screen is staring directly at you, so you have this feeling of being constantly the center of attention and that is just stressful in general, especially for long periods of time.

The size of other participants’ faces is often large on our screen. Professor Fauville says,  “ … Generally, if people are very close to each other, that’s a very intense situation that could lead, for example, to mating or conflict.

2- Self-Evaluation

being able to see ourselves causes Zoom anxietyCharlotte Armitage, a media and business psychologist, reports that being able to see ourselves causes Zoom anxiety.  Being able to see ourselves causes Zoom anxiety because our reflection on-screen provides an added level of focus we wouldn’t have in real life. “The additional psychological processing involved in attending to one’s own behavior and actions … adds an additional level of stimuli that you wouldn’t have had in a face-to-face meeting.” 

Professor Russell says, “It can be very draining to be paying attention to how people see us and how they view our reactions.

3- Lack of Movement

During in-person meetings, people move around. Professor Fauville says that is not true during a Zoom meeting and it impacts outcomes. “Studies have shown that motion and movement are very important for creativity … for performance in general, so suddenly with video conferences, you are stuck in this box in view of the camera.

4 – No Nonverbal Cues

Zoom meetings increase the “cognitive load” on participants. Video conferences require people to interpret virtual gestures and other nonverbal clues. Ms. Fauville says.

During face-to-face meetings, … we have a lot of ways to communicate … the intonation we use, the pauses we use in our sentences… information that most of us understand naturally … With video conferences, the only information I have about your body language is your head and your shoulder, so suddenly I have to second guess what you mean behind your words.

the only information I have about your body language is your head and your shoulder

How to calm Zoom anxiety

Here are some tips for Zoom users that feel awkward when asked to speak on camera, to reduce Zoom anxiety.

Limit calls
Video calls may not always be the most efficient option. Ask if this call is really necessary. It may be easier to add notes onto a shared doc, for example. 

Cancel cameras
Cameras cause stressAfter starting the camera, use the “hide self” function. Bosses should be open to turning off cameras because of the stresses it can cause. Stanford’s Fauville suggests,  “… using cameras only when it really adds something.”  If your boss insists cameras are required on every call, try putting your camera on a side angle not face-on. You will focus less on yourself.

Allow recharge time
Limit the number of Zoom calls. If that won’t work for the boss try to get a break between calls to recharge. Failing those accommodations, Professor Fauville recommends shrinking the size of your video conferencing window so it’s not taking up your full screen. It can also be a good idea to periodically focus on something other than your screen. This way, she says, “You focus on what you hear, you don’t have to think about the body movement and so on.

Give notice
Never drop anyone on a call without telling them in advance. If people have time to prepare, they’ll be more organised and less anxious. 

Communicate concerns
Communicate! Talk to bosses, talk to teams – if there’s an issue, you never know who else is facing it too. Encourage conversations. Ask your boss for a private chat. 

Move

Get up from your chairGet up from your chair, stretch, water your plants, pet your dog or cat. Give your brain a chance to switch gears between meetings. Set up your camera further away from you. It will capture more of the room so you can stand, pace, or stretch without fear of going off frame.

An external keyboard can help you sit further away from the camera. Being further away can encourage movement as fidget during the call. It also puts more distance between you and your screen. This will decrease the intensity of the eye contact your brain perceives from other participants.

Focus on Physical Health
Dr. Hallie Zwibel, the director of NYIT’s Center for Sports Medicine recommends,  “… an ergonomic chair, making sure your keyboard is ergonomically designed. We also recommend taking a standing break at least every 45 minutes.

Limit glareIn addition, Dr. Zwibel recommends “Make sure you’re limiting glare, that your screen is eye level, with a certain amount of distance between you and your screen.

Staring at a screen for hours on end can cause “pseudo-myopia,” meaning nearsightedness. It’s easy enough to avoid. Every 20 minutes, look away from the screen for 20 seconds at an object 20 feet away. (There’s are several apps for that.)

rb-

For many of us, video calls are like standing up in front of the classroom. It’s just going to feel uncomfortable for that reason alone.

Stay safe out there!

Related article

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Dell to Spin off VMWare?

Layoffs are coming to DellUpdated 09/16/2020 – Layoffs are coming to Dell Technologies. Bloomberg reports that during it’s last quarterly all-staff meeting, Dell workers were told that company-wide workforce reductions were coming. A Dell spokesperson announced,  “… we’re addressing our cost structure to make sure we’re as competitive as we should be now and for future opportunities … we’re doing what’s best for the long-term health of our company and our team.

Dell has already taken a number of people cost-cutting measures. It has suspended 401(k) matching, bonuses, and promotions for the fiscal year. The firm had previously announced that 60% of its workforce will WFH or be in the office one or two days a week. Dell will provide a one-time stipend of $400 for home-office equipment.

However, over at VMware, which is 81% owned by Dell, there is a different pain. VMware has told its employees they can move away from Silicon Valley and work remotely on a permanent basis. However, VMware may cut their pay should they chose to move to a less expensive location. Employees who move could face salary cuts of 8% -18% Bloomberg reported.  A VMware spokesperson emailed SDXcentral,

…VMware is building a dynamic, global workforce of the future where our people have choice and flexibility to work from any location … VMware is dedicated to equitable pay for its workforce, not by only race and gender, but also work location or geography.

Dell to Spin off VMWare?

The rumor mill is grinding on Dell and VMware again. Back in June 2020, the WSJ reported that Round Rock, TX-based Dell Technologies (DELL) was exploring the idea of spinning off its $50 Billion – 81% ownership stake in VMware (VMW). But the dust settled on that speculation until recently

VMware logoDuring the 08/27/2020 Q2 earnings call, VMware CEO Pat Gelsinger said his company was in discussions with parent-owner Dell about a possible spin-off. According to a Seeking Alpha transcript, CEO Gelsinger said,

I want to acknowledge the recent Dell Technologies 13D filing about their considerations of a potential VMware spin-off … our Board has formed a special committee … and we are in discussions with Dell.

Potential spin-off

Dell logoCEO Gelsinger sought to assure current VMware customers. “We have over a year to go as any potential spin-off would not occur prior to September 2021.” The potential spin-off would be designed to “unlock the full value of Dell’s hardware business and VMware’s software business.” As of 09/01/2020, VMware’s market cap ($59.2B) overshadows Dell’s ($49.17B) market cap.

In June 2020 statement Dell said:

Dell Technologies believes a spin-off could benefit both Dell Technologies and VMware shareholders, team members, customers and partners by simplifying capital structures and creating additional long-term enterprise value. …  Any potential spin-off would …  be intended to qualify as tax-free for U.S. federal income tax purposes.

VMware Solid second-quarter results

COVID-19Fierce Telecom reports that VMware posted solid second-quarter results in the face of headwinds from the COVID-19 pandemic. On-premise revenues were down to the pandemic. However, VMware’s subscription and software-as-a-service (SaaS) revenue was up 44% from a year ago. SaaS revenue was $631 million and accounted for 22% of its total revenue in Q2.

VMware reported second-quarter earnings of $447 million, or $1.06 per share, on revenue of $2.88 billion. The results were an increase of 9% year over year from $2.63 billion. VMware CEO Gelsinger commented, “I do think, as we’ve indicated, that COVID has been a bit of a headwind for on-premise, growth … particularly in the Americas.”

Looking forward, Mr. Gelsinger foresees uncertainties into 2021 due to COVID-19.

We do think that the environment remains a pretty uncertain. … we expect Q3 to still be challenging with recovery in Q4 and Q1 and into next year … we still think that (there are) several quarters of recovery until we’re back to a more normal economic environment.

rb-

The deal makes sense for the big-wigs. Big-wigs that will profit from the venture include Dell CEO Michael Dell and his venture capital backers. PE firm Silver Lake owns about 100 million shares of Dell, worth over $5 billion. CRN suggests that the deal could shift Dell’s $48 billion in long-term debt elsewhere, potentially to VMware.

What are the risks to VMware’s enterprise customers? CEO Dell claims he expects to formalize agreements between the step-children. The agreements would allow “ongoing strategic benefits and continued support for customers of both companies following any spin-off.” 

The firms have tightly integrated Dell hardware with VMware software. In the face of a COVID-19 recession well into 2021 enterprise customers are going to be pretty risk-averse. Customers are going to have to take whatever price increases VMware imposes to cover the new debt.

There are lots of people available with strong VMware skill-sets. Moving a firm’s infrastructure off VMware to a private or hybrid cloud environment as a managed service would require different IT operating models and skill sets that would probably cost a lot to set up and support. 

Stay safe out there!

Related article

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Pop-Up Ads – Tripod’s Revenge

Pop-Up Ads - Tripod's RevengeDo you remember Tripod? Founded in 1995, Tripod was a pioneer in the user-generated content market, now dominated by Mark Zuckerberg and Facebook. When you signed up for a Tripod account you could create a free website with all kinds of totally cool HTML 2.0 tricks like blink and marquee and it introduced pop-up ads.

Tripod was one of the original web destinations, including GeoCities and Angelfire trying to build online communities. Like all web properties, the site struggled to monetize the site. At first, the site relied on banner ads to fund the site. Banner ads were pioneered in 1994 by Hotwired (a long-gone online addition to Wired magazine). Even in the 1990s, online advertising was not popular.

Tripod site

The banner ads got in the way of the content. Advertisers were not always happy with the pages their banners appeared on. Tripod’s advertising methods changed when, as internet lore recalls, a big car manufacturer was not happy about their ad displaying on a page about sodomy that Tripod was hosting.

Tripod invented pop-up ads

code that would open the ad in a separate window

Ethan Zuckerman, one of the original Tripod employees, came up with a solution. He hacked together some code that would open the ad in a separate window. In 1996 he designed a vertically-oriented pop-up window that included navigation tools and an ad for inclusion on web pages.

The separate window would pop up and display promotional content in a new individual browser window that appeared on top of the active browser window. Mr. Zuckerman’s pop-up ad has been adapted and used across all OS’s screens. Mr. Zuckerman says his hack was intended to be less intrusive than inserting an ad into the middle of a user’s homepage.

The “innovation” took off. Pop-ups became one of the most hated forms of online advertisement. Occasionally pop-up ads can be useful – most of the time they are annoying, Some pop-up ads can be dangerous. No matter what the marketers call them, pop-up, pop-under, exit-overlays, exit-intent, click-activated, etc. – nearly 3/4’s of users told Hubspot they dislike “Online pop-ups.”

People’s hate pf pop-ups lead to the development of pop-up blockers. In 2002 Henrik Sørensen published the first pop-up blocker Adblock. The EFF reports that as of the end of 2018, ad blocking software had roughly 200 million daily active users.

Mr. Zuckerman, now at MIT, offered an apology for his role in what the pop-up has become. He wrote, “I’m sorry. Our intentions were good”. He believes that “advertising is the original sin of the web.”

rb-

Website marketers are preventing their customers from viewing content if they're using an ad blocker.

The pop-up battle which started in 1996 is escalating. Website marketers are fighting back. They are preventing their customers from viewing content if they’re using an ad blocker. Despite reports that 74% of AdBlock users say that they leave websites when they encounter such an ad block wall.

Stay safe out there!

Related article

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.