IBM to buy BI software partner

Liked SPSS's technology so much.... it bought the company.

By Peter Sayer, IDG news service | Computerworld US
Published: 14:57 GMT, 28 July 09

IBM is to buy analytics software specialist SPSS just a month after IBM announced plans to embed SPSS technology in its BI and performance management tools.

SPSS specialises in predictive analytics tools that help companies mine historical business data to identify future trends that they can exploit for greater efficiency or profit. IBM sees potential applications for SPSS tools in helping financial services companies retain customers, preventing crime and picking the optimal site for a new store or factory.

IBM is intent on expanding its business analytics capabilities. In May it acquired data discovery technology from Exeros for an undisclosed sum, and in January last year it paid $5 billion for business intelligence software developer Cognos.

It also sees the sector as a rich source of consulting revenue: IBM Global Services recently created a Business Analytics and Optimization Consulting division which the company expects will make use of products from Exeros and, now, SPSS.

IBM will continue to support and enhance the SPSS products as part of its Information Management software portfolio after the deal closes, it said. The companies expect to close the deal, worth $1.2 billion,  by the end of the year, subject to approval from regulators and SPSS shareholders.

In an unrelated deal, IBM also announced that it will acquire Ounce Labs, a Massachusetts maker of source code analysis tools, for an undisclosed sum. Ounce Labs develops software that analyses the security of other software and suggests ways to improve it. IBM expects to incorporate the company's products into its Rational software quality division.

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