Business & Technology Innovation Report W32 2014

1. BUSINESS & TECHNOLOGY
INNOVATION REPORT
Week 32
2014
Prepared by
Ferhat Ünlükal
10/8/2014

2.  BUSINESS & TECHNOLOGY INNOVATION REPORT
 2
BUSINESS &
TECHNOLOGY
INNOVATION
REPORT
Week 32
Headlines
Consumer Electronics (CE)
 The total Smart TV gesture recognition
market is expected to reach $479.88
Million by 2018 growing at a CAGR of
131.26% from 2012 to 2018.
ICT
 Apple has officially closed its $3 billion
deal to acquire Beats.
 Nokia Systems is acquiring part of the
wireless networks business of
Panasonic Systems Networks Co. Ltd.
 HARMAN announced that new orders
from global automakers in July 2014
totaled US$1.3 billion.
 The global smart cities market is
expected to grow from $654.57 billion
in 2014 to $1,266.58 billion by 2019, at
an estimated Compound Annual Growth
Rate (CAGR) of 14.1% from 2014 to
2019.
 The five largest notebook vendors'
combined shipments in July decreased
25% on month.
 The cloud security market is expected
to grow from $4.20 billion in 2014
to $8.71 billion in 2019.
Semiconductor Industry
 IBM unveiled what it's calling the
world's first neurosynaptic computer
chip, a processor that mimics the
human brain's computing abilities and
power efficiency.
Software Industry
 Emu announced that it was being
acquired by Google.
 Facebook has acquired PrivateCore, a
security startup focused on encryption
and malware prevention.
Hospitality and Healthcare Industry
 Siemens plans to sell its hospital IT
business to Cerner Corp.
 Total DS market is expected to reach
$14,875.6 million by 2020 at an
estimated CAGR of 8.94% from 2014 to
2020.
Retail and Payment Industry
 Gemalto NV is to buy U.S.-based data
protection specialist SafeNet for $890
million.
 Square plans to announce that it has
acquired San Francisco-based Caviar.
 PTL International, the technology
subsidiary of Hili Ventures, has
acquired APCO Limited.
 The global market for NFC, in terms of
revenue, was valued at USD 1.07
billion in 2012 and is estimated to grow
at a CAGR of 43.7% during the forecast
period from 2013 to 2019.
 EMV/smart payment card volumes
reached shipment levels totaling 1.67
billion in 2013, an increase of 27%
when compared to 2012.

3.  BUSINESS & TECHNOLOGY INNOVATION REPORT
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Consumer Electronics (CE)
CE Market
Gesture Recognition for Smart TV Market
 According to a new market research
report "Gesture Recognition For Smart
TV Market by Software (2D & 3D
Image Sensor), Hardware (Image
Sensor, IR Proximity Sensor, IR
Temperature Sensor, Light Sensors, &
Semiconductor ICS), And Geography
(Americas, EMEA, & APAC) - Analysis &
Forecast to 2013 - 2020", published by
MarketsandMarkets, the total Smart TV
gesture recognition market is expected
to reach $479.88 Million by 2018
growing at a CAGR of 131.26% from
2012 to 2018.
ICT Industry
Apple
Acquisition of Beats
 Apple has officially closed its $3 billion
deal to acquire Beats.
 The iPhone maker posted a page on its
site on Friday, announcing that the deal
has officially closed. Apple provided no
insight into what it has planned for
Beats now that it owns the company,
but did welcome the firm "to the
family."
Apple’s stock performance
Nokia Siemens
Acquisition of Panasonic
 Nokia Systems is acquiring part of the
wireless networks business of
Panasonic Systems Networks Co. Ltd.
The two companies signed last week a
memorandum of agreement to make
way for that.
 A press statement by the Espoo,
Finland-based data networking and
telecoms equipment vendor said the
agreement involves purchase of the
Osaka, Japan-based vendor's mobile
phone (LTE/3G) wireless base system
station system business for operators
as well as its related wireless
equipment system.

4.  BUSINESS & TECHNOLOGY INNOVATION REPORT
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Harman
Connected Car
 HARMAN, the premium global audio
and infotainment group, announced
that new orders from global
automakers in July 2014 totaled US$1.3
billion.
 As building automation and information
technology converge, wireless
technology is providing a range of
potential benefits for commercial
building owners and managers. While
building automation and controls have
been used for decades, wireless
communication systems are becoming
the catalyst for enabling more granular
control over building systems, without
many of the design and labor
challenges involved with running
traditional cabling to support
communications and/or power. Click to
tweet:According to a new report
from Navigant Research, shipments of
wireless control nodes for commercial
buildings will grow from 12.9 million in
2014 to 57.4 million by 2023.
Harman’s stock performance
ICT market
Smart City Market
 The study reports that the global smart
cities market is expected to grow from
$654.57 billion in 2014 to $1,266.58
billion by 2019, at an estimated
Compound Annual Growth Rate (CAGR)
of 14.1% from 2014 to 2019.
 The main long-term drivers of smart
cities are linked with the economic
growth of a region. In case of mature
markets, the regions boast with high
engaged citizens, sophisticated and
multi-layered government and access
to high innovations. In case of
emerging markets, the region focuses
on developing more smart cities as they
lack proper infrastructure facilities while
competing for global attention.
Notebook shipments
 The five largest notebook vendors'
combined shipments in July decreased
25% on month while the three largest
ODMs' combined shipments also
slipped 17%, according to Digitimes
Research.
 Hewlett-Packard (HP) and Lenovo saw
over 30% declines while Acer and
Asustek Computer saw roughly 20%.
Dell, however, saw an increase in
shipments.
 In terms of ODMs, Compal saw a 20%
decline while Wistron saw an 11%
decline.
 Despite the declines for notebook
vendors and ODMs, their shipments
from January-July 2014 have overall
increased over the same period in
2013.
 Chromebooks meanwhile reached 1.5
million in shipments during the second
quarter of 2014 to hold a 3.7% share in
overall notebook shipments, up from
2.4% in the previous quarter. Samsung
Electronics and Acer are the main
suppliers of the technology, currently
holding a 80-85% share in the market,
addedDigitimes Research.
Cloud Security Market
 The cloud security market is expected
to grow from $4.20 billion in 2014
to $8.71 billion in 2019 with a CAGR of
15.7% during the forecast period 2014-
2019.

5.  BUSINESS & TECHNOLOGY INNOVATION REPORT
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Semiconductor Industry
IBM
Neurosynaptic Computer Chip
 IBM unveiled what it's calling the
world's first neurosynaptic computer
chip, a processor that mimics the
human brain's computing abilities and
power efficiency.
 Known as TrueNorth, IBM's chip could
cram supercomputer-like powers into a
microprocessor the size of a postage
stamp. Rather than solving problems
through brute-force mathematical
calculations, like today's processors, it
was designed to understand its
environment, handle ambiguity, and
take action in real time and in context.
Plus, it could be among the most
power-efficient chips in the history of
computing, enabling new types of
mobile apps and computing services,
IBM principal investigator and senior
manager Dharmendra Modha said in an
interview.
 Modeled after the human brain, the
TrueNorth chip incorporates 5.4 billion
transistors, the most IBM has ever put
on a chip. It also features 1 million
programmable neurons and 256 million
programmable synapses. That's far
lower than the 100 billion neurons and
100 trillion to 150 trillion synapses in
the human brain -- but still enough,
Modha said, to run devices that could,
for example, proactively issue tsunami
alerts, do oil-spill monitoring, or
enforce shipping lane rules. And all that
happens while consuming just 70
milliwatts of power, about the same as
a hearing aid.
 The TrueNorth chip is the core element
of IBM's cognitive computing program,
which is known as SyNapse.
IBM’s stock performance

6.  BUSINESS & TECHNOLOGY INNOVATION REPORT
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Software Industry
Google
Acquisition of EMU
 Emu announced that it was being
acquired by Google. The smart
messaging service mines your
conversations and surfaces relevant
information like restaurant and movie
reviews. Plus you when you receive or
send a message with a time or day (for
example: let’s get lunch on
saturday), the app gives you the option
to create a calendar event based on
that information with just a tap.
Google’s stock performance
Facebook
Acquisition of PrivateCore
 Facebook has acquired PrivateCore, a
security startup focused on encryption
and malware prevention, according to a
blogpost by PrivateCore chief Oded
Horovitz.
 According to Horovitz, Facebook will
“deploy” PrivateCore’s “technology into
the Facebook stack to help protect the
people who use Facebook.”
 PrivateCore was backed by Foundation
Capital, a VC firm that also invested in
Pocket, AdRoll,
and SpoonRocket. PrivateCore was
founded by ex-VMware and ex-Google
staff.
Facebook’s stock performance

7.  BUSINESS & TECHNOLOGY INNOVATION REPORT
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Hospitality and Healthcare Industry
Siemens
Selling hospital IT business to Cerner
 German engineering group Siemens
plans to sell its hospital IT business to
Cerner Corp, a U.S. provider of
healthcare IT services, for $1.3 billion
in cash, the two companies said.
Siemens’s stock performance
Hospitality and Healthcare Market
Digital Signage
 According to a new report "Digital
Signage Market by Hardware, Software
(Edge Server, Distribution &
Scheduling, Content Management),
Application (Commercial,
Infrastructure, Institutions, Industrial),
Products (Indoor & Outdoor) & by
Geography - Forecast to 2014 - 2020",
published by MarketsandMarkets, the
total market is expected to reach
$14,875.6 million by 2020 at an
estimated CAGR of 8.94% from 2014 to
2020.
Retail and Payment Industry
Gemalto
Acquisition of Safenet
 Gemalto NV, the digital security
company that makes smart chips for
mobile phones, bank cards and
biometric passports, is to buy U.S.-
based data protection specialist
SafeNet for $890 million (529 million
pounds), it said on Friday, in a move
set to boost its earnings and reach.
Gemalto’s stock performance
Square
Acquisition of Caviar
 Square is on a mission to diversify, and
it’s turning to the red-hot food delivery
industry to do so.
 The payments company run by CEO
Jack Dorsey plans to announce this
week that it has acquired San
Francisco-based Caviar, according to a
person familiar with the deal. Caviar
runs a service that lets consumers
order meals to be delivered to their
homes or offices from restaurants that
don’t normally offer delivery.

8.  BUSINESS & TECHNOLOGY INNOVATION REPORT
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PTL
Acquisition of APCO
 PTL International, the technology
subsidiary of Hili Ventures, has
acquired APCO Limited, the Malta-
based market leader in automation
products and payment solutions.
 This is PTL International’s second key
acquisition this quarter, following the
announcement on July 1 of its purchase
of SAD, Poland’s largest retail network
of Apple products.
 With APCO under its umbrella, PTL
International now boasts a knowledge
base of more than 400 people, mostly
IT professionals, based in seven
territories: Malta, Poland, Latvia, Libya
and Dubai, and in Hungary and
Romania through a joint venture with
VJ Salomone. PTL International’s
annual turnover will now exceed €100
million.
Retail and Payment Market
NFC Market
 According to a new market report
published by Transparency Market
Research "Near Field Communication
(NFC) Market (By Products - NFC
Controller ICs (chips), NFC Tags, NFC
Readers and NFC Secure Elements; By
Applications - Payments, Ticketing,
Booking, Data Sharing, Services,
Authentication and Access Control,
Healthcare, Games and Toys, and
Others) - Global Industry Analysis, Size,
Share, Growth, Trends and Forecast,
2013 - 2019", the global market for
NFC, in terms of revenue, was valued
at USD 1.07 billion in 2012 and is
estimated to grow at a CAGR of 43.7%
during the forecast period from 2013 to
2019. The growing adoption of NFC
technology in smartphones emerged as
the most significant growth driver for
NFC market. In 2012, North
America was the largest market for NFC
which held a share of around 32% in
terms of revenue owing to the
significant demand for contactless
payments and early implementation of
technology.
EMV/Smart Payment Card
 EMV/smart payment card volumes
reached shipment levels totaling 1.67
billion in 2013, an increase of 27%
when compared to 2012. This
exceptional growth was primarily driven
by the “China effect” as it continues to
migrate to its PBOC standard.
Additional growth will come from EMV
migration in the United States and
increased contactless adoption in
Europe. Moving forward ABI Research
expects a doubling of worldwide
shipments, with 3.3 billion forecast in
2019.
 In 2013, 442 million smart payment
cards with the PBOC specification
shipped into China. Of that total, 56%
were contactless, with the remainder
primarily made up of contact-based
payment/social security cards. If we
discount China, worldwide YoY growth
would have been just 8.5% between
2012 and 2013, which highlights the
effect this single country is having on
the overall worldwide picture.

9.  BUSINESS & TECHNOLOGY INNOVATION REPORT
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References
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