IBM Could Face Bidding War For SPSS - InformationWeek
IoT
IoT
Healthcare // Analytics
News
8/5/2009
01:05 PM
50%
50%
RELATED EVENTS
The Real Impact of a Data Security Breach
Aug 02, 2017
In this webcast, experts discuss the real losses associated with a breach, both in the data center ...Read More>>

IBM Could Face Bidding War For SPSS

An analyst says Oracle, SAP, or HP may try to outbid IBM's $1.2 billion offer.

A San Francisco-based analyst, in a note Wednesday, suggests IBM's planned acquisition of business-intelligence software vendors SPSS Inc. is not a done deal.

"Conversations lead us to believe that SPSS could get another bid," said Cowen & Co.'s Peter Goldmacher in an investor's note.

Goldmacher wrote that "conversations with industry luminaries" indicate IBM's $ 1.2 billion bid for SPSS last week was a "dramatic premium" to avoid a bidding war with other interested parties, including SAP and Hewlett-Packard. But that strategy may not work.

Cowen & Co. hasn't "ruled out the possibility" that potential acquirers will come after SPSS with an unsolicited offer," Goldmacher wrote.

Goldmacher doesn't mention Oracle, but in a follow-up email, confirmed that Oracle could be a potential suitor of SPSS.

What's more, an unsolicited acquisition is far more Oracle's style than SAP's or Hewlett-Packard's. Who can forget Oracle's 18-month-long, hostile takeover of PeopleSoft, concluded in 2004 for $10.3 billion?

And Goldmacher may have some unique insight into Oracle, which is also his former employer.

Finally, in an interview withInformationWeek last week, SAP's Bill McDermott gave no indication of any interest in SPSS, but rather, seemed in support of the IBM deal, since SAP regularly partners with both IBM and SPPS.

"Because it's two friendly partners, I expect this acquisition will help the SAP relationship with SPSS," said McDermott, president and CEO of global sales at SAP. "We'll be able to consolidate two conversations into one."

Oracle declined comment about any interest in SPSS.

SAS Institute had 33% of the advanced analytics market in 2008 and SPSS had 14%. The market is highly fragmented after those two, with Microsoft coming in No. 3 at 1.7% of the market, with the advanced analytics capabilities it offers through SQL Server.

IBM, Oracle, HP, and SAP could all benefit from more predictive analytic offerings in their BI product portfolios, and all four have partnered with SPSS on customer offerings.


Download the Aug. 3 issue of InformationWeek. It's the second of four digital issues we're producing this year in lieu of printed ones in an effort to reduce our carbon footprint. Access is free, but you must be a registered member of the InformationWeek Business Technology Network. (Membership is free and takes only a few minutes.) Find out more.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll