IBM Continues to Bet on Big Data and IoT Space



IBM’s Cleversafe acquisition enhances its portfolio for data capacity-intensive workloads

In the prior part of this series, we looked at IBM’s recent launch of Power Systems LC aimed at Big Data and the HPC market. IBM’s recent acquisition of Cleversafe on October 5, 2015, is also expected to enhance IBM’s footing in the Big Data space. Cleversafe offers a scalable, cheaper storage option that’s required for data capacity-intensive workloads in various areas such as healthcare, science, insurance, and financial services. These features will enhance IBM’s capabilities, as its portfolio can now support unstructured data in NoSQL databases and IoT (Internet of Things).

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Cleversafe, with its 350 patents related to object-based and on-premise storage, enables customers to scale deployments to manage exabytes of data. IBM believes that companies interested in Big Data space that owe their increased adoption to IoT networks will benefit from this low-cost, scalable form of storage.

Other technology players are also targeting Big Data space to fuel growth. Hewlet-Packard (HPQ) feels that Big Data will drive growth after its split in November 2015. In April 2015, Oracle (ORCL) announced an addition of an integrated module, Oracle Data Integrator, specifically for its Big Data suite of offerings.

Object-based storage is about to witness huge growth thanks to Big Data revolution

IDC (International Data Corporation) expects object-based storage to be a $28 billion market by 2018. Citing IDC estimates, IBM stated that 80% of the new cloud applications are expected to be Big Data–intensive. The rapid increase in data-intensive cloud applications will give rise to a demand for storage that will in turn drive interest in the object storage space. IBM, which doesn’t want to be left behind in this scalable opportunity, has added Cleversafe to its portfolio at an opportune time.

Commenting on IBM’s Cleversafe acquisition, Maynard Um, a senior analyst with Wells Fargo (WFC), stated, “While Cleversafe’s revenues are unknown, it has noted in the past that it generates tens of millions in annual revenues and experienced triple-digit revenue growth in (the first half of) 2015 and 2014.” He went on to say, “We believe the acquisition aligns with IBM’s Big Data strategy.”

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