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Acer buys iGware for $320 million

Taiwan's Acer Inc will buy U.S.-based cloud computing firm iGware Inc for $320 million, the fifth-largest ever Taiwanese buyout of a U.S. company, as it seeks to move beyond its core hardware manufacturing business . (Reuters , July 21) The aforementioned deal worth $395 million will make it the second largest Taiwanese purchase of an American company. The the only other Taiwanese deal to surpass this was Acer's purchase of U.S. PC maker Gateway Inc for $761.5 million in 2007. Acers move gives it membership in an elite yet growing club of tech companies (Apple, Hewlett-Packard and Microsoft) that offer cloud services to its consumer base. From a tactical stand point there are numerous inter-related trends which are now driving up the demand for cloud service. In fact the research firm Gartner has, for its 2015 prediction, noted a $73 billion market for cloud services. Cloud services will be drawn to the limelight of mobile computing with the rapid growth in the use of Internet-connected smartphones and other mobile devices, couple that with the increasing mobility of both private and corporate consumers, all of whom are always on the lookout for means to store and access data over the Internet. Considering that Acer, (the number 2 PC manufacturer in the world) is moving towards the mobile computing systems just like apple and android based offerings, it makes all the sense to purchase a company that can provide the means for vast storage and mobile computing. "This (the acquisition) is the right direction for Acer," said Tracy Tsai, an analyst at IT research company Gartner. For the past decade, Acer has been a dominant force in the personal computer manufacturing business, especially in providing low-cost notebooks. Acer, however, has been weak in countering the blitzkrieg success of tablets such as Apple's

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