Healthcare // Analytics
01:21 PM

SPSS Gives IBM Advantages, But Can It Execute?

IBM's performance in the BI market has been sub-par, but the SPSS acquisition gives it a trump card against SAP and Oracle.

What's more, IBM's acquisition could create problems for top competitor SAP, which relies on SPSS as its predictive analytics platform through a partnership with the company. Oracle also partners with SPSS. "SPSS has a number of key partnerships that I think will be at risk," Sallam says.

The acquisition also gives SPSS the strength of IBM's sales force and its deep investment pockets, which could create problems for the king of predictive analytics, SAS Institute.

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.

Jim Davis, chief marketing officer at SAS, differentiates his company's advanced analytics capabilities as "looking to solve problems very specific to [a specific] industry," while SPSS's approach is "a bit commoditized." Davis also sees the potential for SPSS getting swallowed up by IBM in a way that dilutes its market presence.

SAP's Bill McDermott, however, takes a more delicate approach with the acquisition, given SAP's close working relationships with IBM in joint deals for business apps with databases and servers. McDermott claims no threat. "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."

Gartner's Sallam isn't so sure, given that the fiercest competition in the BI market rests between SAP's Business Objects and IBM's Cognos. "This is a threat to Business Objects, which has based its entire predictive analytics [offering] around that SPSS relationship," Sallam said.

InformationWeek's Informed CIO series lays out 10 steps to achieve excellence in service assurance initiatives. Download the report here (registration required).

2 of 2
Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Big Love for Big Data? The Remedy for Healthcare Quality Improvements
Big Love for Big Data? The Remedy for Healthcare Quality Improvements
Healthcare data is nothing new, but yet, why do healthcare improvements from quantifiable data seem almost rare today? Healthcare administrators have a wealth of data accessible to them but aren't sure how much of that data is usable or even correct.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on for the week of August 21, 2016. We'll be talking with the editors and correspondents who brought you the top stories of the week to get the "story behind the story."
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.