Big Data Strategy of IBM

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Case Details:

Case Code : ITSY076
Case Length : 18 Pages
Period : 2010-2013
Organization: IBM
Pub Date : 2014
Teaching Note : Not Available
Industry : Information Technology streaming services
Countries : US; Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Our goal is to offer the broadest and biggest depth and breadth of any vendor in the marketplace. As we fill up this portfolio, we’re really filling in the holes that we had in (our) integration.”

– Nancy Kopp-Hensley, Director of Big Data strategy at IBM, 2013.

On October 29, 2013, International Business Machines Corporation (commonly referred to as IBM) completed the acquisition of The Now Factory. The Now Factory, headquartered in Dublin, Ireland, was a provider of analytics software that helped communications service providers (CSPs) in delivering enhanced customer experiences and offered new revenue opportunities. With the new acquisition IBM expected to enhance its Big Data platform by augmenting its existing products (Refer to Exhibit I for a note on Big Data). For instance, the acquisition complemented the IBM MobileFirst analytics portfolio. Similarly, the IBM InfoSphere Streams augmented The Now Factory’s data mediation and analytics and helped IBM expand into more real-time analytics.

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IBM, a US-based computer hardware and software major, had been on an acquisition spree in the Big Data space since 2006. The company had implemented a Big Data strategy, where it offered solutions to store, manage, and analyze huge amounts of data that was generated daily and equipped large and small companies to make informed business decisions. It had acquired around 30 companies to expand its Big Data portfolio of products and services. The company believed that Big Data had the potential to analyze the huge amounts of data available with organizations and create value for them.

The company believed that its Big Data and analytics products and service would help its clients become more competitive and drive growth. The Big Data platform offered valuable insights to companies and transformed their businesses. IBM established a broad portfolio of Big Data technologies and solutions, spanning services, software, research, and hardware. In 2011, the company invested US$100 million in the research and development of Big Data services and solutions. It also spent US$16 billion over these Big Data acquisitions. In the past, the company had integrated companies like Cognos, SPSS, Netezza, and Vivismo into its Big Data platform.

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