5 Companies That Had A Rough Week
For the week ending March 13, CRN looks at IT companies that were unfortunate, unsuccessful or just didn't make good decisions.
The Week Ending March 13
With the rapid spread of the coronavirus, it’s been a rough week for the IT industry across the board with canceled conferences, disrupted business and economic uncertainty.
Here’s a sampling of some of the coronavirus-related havoc that IT vendors experienced this week. And here’s a complete list of CRN’s coverage of the coronavirus crisis.
Despite the coronavirus headlines, not everyone in the IT industry was having a rough go of it this week. For a rundown of companies that made smart decisions, executed savvy strategic moves – or just had good luck – check out this week's Five Companies That Came To Win roundup.
Dell Technologies, Microsoft Among IT Giants Canceling Events Due To Coronavirus
While multiple IT industry events were canceled before this week, the cancellations due to the coronavirus outbreak became a torrent this week with major industry and vendor-specific conferences and events being canceled through April, May and even June – many being replaced with virtual events instead.
Dell Technologies cancelled Dell Technologies World 2020, the vendor’s biggest annual event, that was scheduled for early May in Las Vegas. Dell will substitute a virtual event in its place.
Microsoft likewise canceled its Build 2020 developer conference, scheduled for May, while Apple canceled its Apple Worldwide Developer Conference that was scheduled for June. Both will be replaced with virtual events instead.
Other vendors canceling live events this week included Intel, AMD, Nvidia, ConnectWise and Rubrik.
Xerox Puts HP Takeover Attempt On Hold, Cites Coronavirus Impact
On Friday Xerox said it was putting its unsolicited takeover attempt of HP Inc. on hold, saying Xerox at this time needed to “prioritize the health and safety” of its employees, customers, partners and affiliates.
“We believe it is prudent to postpone releases of additional presentations, interviews with media and meetings with HP shareholders so we can focus our time and resources on protecting Xerox’s various stakeholders from the pandemic,” Xerox CEO John Visentin said in a statement.
Earlier in the week there was speculation that this week’s plunge in U.S. stock markets, which reduced the value of Xerox stock, could hinder the takeover effort. Xerox has made a tender offer of $24 per share for HP stock, made up of a combination of cash and Xerox stock. The offer was based on the $37.68 closing price of Xerox shares on Feb. 6: Today Xerox stock is trading around $22.50.
Apple May Delay 5G iPhone Launch Due To Coronavirus
Apple’s launch of its highly anticipated 5G iPhones could reportedly be delayed this fall as a result of the coronavirus outbreak.
While Apple usually debuts new iPhones in September, the company’s first iPhones to support high-speed 5G connectivity may not be out until October because engineers are unable to travel to China to help perform verification tests on the new devices.
Currently Apple is restricting employee travel and reportedly plans to keep the travel ban in place through the end of April.
Employees At Exabeam, Dell Test Positive For The Coronavirus
The IT industry was hit with a shock Tuesday when Exabeam disclosed that two of its employees who had attended the massive RSA cybersecurity conference had tested positive for the coronavirus. The company issued a tweet warning anyone who had come in contact with the employees to “be vigilant in monitoring yourself for symptoms and follow recommended guidelines to prevent possible infection.”
On Wednesday Dell Technologies confirmed that an employee who had recently visited the company’s Round Rock, Tex., headquarters, had tested positive for the disease. The employee was visiting the headquarters from India.
IT Vendors’ Share Prices Take Hit As Stock Markets Tumble On Coronavirus News
U.S. stock markets suffered steep losses this week, including the steepest one-day fall since the October 1987 stock market crash on Thursday, and IT vendors were not immune.
Nearly all major IT vendors saw the value of their stock plunge by double digits: Two companies on the CRN stock watch list, Extreme Networks and Nutanix, recorded stock price declines greater than 50 percent.
For a look at the impact of this week’s stock market turmoil on the stock prices of the leading IT vendors, check out The Biggest Losing Tech Stocks In The Coronavirus Sell-Off.