IBM has signed a $1.2bn deal to acquire Chicago-based predictive
analytics software company
SPSS.
The acquisition is aimed at expanding IBM's
Information on Demand software portfolio and
business analytics capabilities.
Analysts said the acquisition will benefit end-user
organisations by creating greater competition to the advanced
analytics market, challenging
SAS Institute's dominant position.
"As the only mega supplier with its own advanced analytics and
predictive modelling, SAS has been able to charge a premium," said
Dan Sommer, research analyst at Gartner.
The move will also challenge SAP and Oracle, which have built
their predictive modelling strategies around partnerships with
SPSS.
"The partnerships are unlikely to end immediately, but they will
be much more vulnerable when SPSS is under IBM," said Sommer.
IBM customers will benefit from much deeper integration between
SPSS technologies than former partners, he said.
IBM said in a statement it is increasing its focus on business
analytics technology to meet customer needs to cut costs, reduce
risk and raise profits.
"The
ability to forecast future trends and spot shifts in consumer
patterns or behaviour even before they occur can give businesses a
competitive advantage," IBM said.
IDC estimates that the worldwide market for business analytics
software will grow to $25bn this year as businesses attempt to cut
costs and use resources more effectively.
The acquisition is expected to close in the second half of 2009,
subject to approval by SPSS shareholders and US regulatory
authorities.