By Dow Jones Business News, October 01, 2013, 07:32:00 AM EDT
By Nathalie Tadena
International Business Machines Corp. ( IBM ) has agreed to acquire privately held analytics software provider The Now
Factory, expanding the company's big-data business.
Terms of the deal weren't disclosed.
The Now Factory, based in Dublin, makes software for communications service providers to gain real-time insights into
their customers. The software also helps communications-service providers better understand how a subscriber interacts
with cloud-based services, such as mobile applications.
IBM noted demand for this type of software is being driven by growth in the volume of real-time data that is being
produced by mobile devices and the strain it is putting on mobile networks to collect and process events instantly. The
acquisition is part of IBM's long-term strategy to support expected growth in big data and analytics, an area of the
company's business that is expected to reach $20 billion in revenue by 2015.
"The Now Factory's software enhances IBM's Big Data and Analytics portfolio by improving the speed, development and
implementation of big data solutions, and gives communications-service providers the ability to better service their
customers," said Bob Picciano, general manager for information management in IBM's software group.
The deal is expected to be completed in the fourth quarter.
IBM is known for aggressively shedding less profitable businesses and cutting costs while bulking up its catalog of
more unique offerings--such as consulting services, analytics software and data-storage systems--where it can earn wider
margins. However, a number of analysts have raised concerns that IBM, which makes much of its money selling software,
hardware and computer systems, may be on the wrong side of a major technology shift, known as cloud computing.
In July, the computing and tech-service giant reported its second-quarter earnings declined 17% as it recorded weaker
hardware and services sales and significant workforce reduction expenses.
Shares closed at $185.18 and were mostly inactive premarket. The stock is off 3.2% over the past three months.
Write to Nathalie Tadena at firstname.lastname@example.org
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