IBM's acquisition of the business continuity services unit
of Schlumberger last week will reduce choice for users in a market
dominated by a handful of suppliers, according to an
analyst.
"You could argue that IBM's acquisition of the Schlumberger
business continuity unit is bad for users as there will be less
choice - although there is not a great deal of choice already,"
said Heather Brice, an analyst at Ovum. "The business continuity
market is dominated by a handful of suppliers because it requires a
lot of capital investment and it is fairly difficult to get
into."
However, Brice added that the acquisition meant IBM users would
have a wider range of business continuity sites.
The Schlumberger unit has long-term contracts with more than 750
clients and has more than 40 recovery sites worldwide.
The business will supplement IBM's own business continuity and
recovery services unit, which has 120 business continuity locations
around the world.
The Schlumberger unit has a strong presence in Europe and will help
firms comply with the Basel 2 regulations, said IBM.