Amazon Buys a Cloud Software Firm; Google Faces New E.U. Charges; Cypress Gains on M&A Rumor

Here's a look at major tech stories in the news.
By Eric Jhonsa ,

Amazon buys cloud app development tool vendor Cloud9 to strengthen AWS

Cloud9 provides a cloud-based integrated development environment (IDE) that supports about 40 programming languages and allows web and mobile developers in different locations to collaborate. Its clients include major cloud app developers such as Salesforce.com (CRM) - Get Report and Atlassian (TEAM) - Get Report. Amazon (AMZN) - Get Reporthas bought Cloud9 for an undisclosed sum; Cloud9 now plans to create products meant specifically for deploying apps on Amazon Web Services (AWS).

The purchase should help Amazon provide better developer tools for AWS. Microsoft has updated its widely-used Visual Studio IDE to include tools for building apps that run on its Azure cloud platform. Alphabet's (GOOGL) - Get Report Google has tried to differentiate its public cloud offerings in part by offering developer-friendly services, and partnered with Cloud9 in January to have Cloud9's IDE integrate with the Google App Engine cloud app platform (PaaS). No word yet on whether that partnership will continue.

While Amazon is the hands-down leader in the cloud infrastructure (IaaS) market, the PaaS market is more competitive. Salesforce, which owns the Heroku and Force.com PaaS platforms, is believed to be the market's leader, with Amazon second and Microsoft third. Heroku, it should be noted, relies on AWS' infrastructure services.

EU levies new antitrust charges against Google

Having already charged Google over its alleged favoring of its own comparison-shopping services (Google Shopping) within search results, and over the required bundling of Google apps and services with the company's version of Android, the EU is now formally accusing Google of violating antitrust law by limiting the ability of third-party sites using Google search to run ads from rival services providers.

The EU's aggressive campaign against Google -- certainly far more aggressive than what the FTC and other regulators have carried out to date -- could have major consequences. In theory at least, the EU could fine Google up to 10% of its annual global revenue for each antitrust violation. Moreover, Google Shopping ads have provided a major boost to Google's search ad revenue over the last two years, and its required bundling of Google search, YouTube and other apps/services with Android has kept a lid on its traffic acquisition payments to Android phone manufacturers and carriers.

Google has defended itself in part by noting Google Shopping faces indirect competition from Amazon and eBay, which consumers will often directly access without going to Google first, and that its Android app/service bundling allow it to recover the costs of supporting Android, which is given away for free.

Cypress Semiconductor gains on a buyout rumor

U.K. financial blogger Betaville reportsCypress Semiconductor (CY) - Get Reportis working with Goldman on exploring its options after receiving buyout interest from three private-equity firms, one of which is known to be TPG Capital. The report comes a few days after one from the Financial Times stating China's Summitview Capital is trying to buy Cypress. Betaville states Cypress turned down a $14 a share offer from Summitview, and is "said to be holding out for $15 a share."

Cypress closed up 3.4% on Thursday to $11.26, after posting larger gains earlier in the day. U.S. regulators have blocked a number of attempts by Chinese firms to acquire American tech companies, but would have no problem with a PE deal. The fact long-time CEO T.J. Rodgers recently stepped down might make a sale easier.

There has already been a decent amount of M&A activity featuring microcontroller makers such as Cypress, but it has generally involved consolidation among peers rather than PE deals. Examples include NXP Semiconductor's (NXPI) - Get Reportmerger with Freescale, Microchip's (MCHP) - Get Report purchase of Atmel and Cypress' merger with microcontroller and flash memory maker Spansion.

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