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IT Clan Chat: IBM Buys Analytics for Crime Detection

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I have a childhood friend name Christopher Westfall.

IQ Crew

Thanks all! Great chatting with you.

IQ Crew

Thank you for leading us in this chat. I'm looking forward to hearing more about this.

IQ Crew

Thank you everyone for a great chat session. See you next time!

Thinkernetter

Haha. Stay safe out there.

IQ Crew

If not, I am going to run for cover. (Just kidding).

Thinkernetter

You've answered all of mine, MJ! :)

IQ Crew

Any other questions, guys?

Thinkernetter

Some more thoughts: HP is positioned well to succeed in software, but analysts and even customers seem to think it cannot execute its plan.

Thinkernetter

My fingers are crossed for you.

IQ Crew

This combo has been known to cut the power.

Thinkernetter

We are having much rain plus gale-force winds.

Thinkernetter

Actually, make that $185M

Thinkernetter

What's happening over there, weather-wise, Mary?

IQ Crew

Guys, if my power fails, you'll know because I will not be showing up online for awhile. It hasn't failed yet, though. Fingers crossed!

Thinkernetter

But i2's parent was bought in 2008 for about $183 million.

Thinkernetter

Thanks for the info on Autonomy.

IQ Crew

@Nicole, no price was mentioned, no.

Thinkernetter

Autonomy also specializes in gathering info from unstructured data. From its site: "Autonomy is the market leader in the provision of software that automates the analysis of unstructured data, whether in the form of text, audio, images or video."

Thinkernetter

Was there a price shared on the i2 buy? I don't recall if that was mentioned.

IQ Crew

So IBM may start with applying i2 in a cloud service to law enforcement in various cities, perhaps also offering it for fraud detection in financial sector.

Thinkernetter

@Nicole, yes the direction is clear and stated publicly by IBM.

Thinkernetter

Interestingly, Autonomy also was founded in Cambridge UK!

Thinkernetter

Considering IBM's heavy focus on and promotion of creating smarter cities and a "smarter planet," the direction is clear when the company makes an acquisition like it did with i2.

IQ Crew

Autonomy does enterprise search, yes. but it does lots of other things too.

Thinkernetter

The start of the quote below should obviously be "Several..." SORRY

Thinkernetter

So if HP has problems integrating, here is what Ben Worthen at the WSJ had to say last week: "everal H-P customers said they are most concerned about what they see as a lack of a clear direction from the world's largest tech company by revenue, signaled in part by H-P's decision to exit the PC business. H-P is currently the world's biggest maker of PCs by shipments and revenue."

Thinkernetter

That's a search software business, yeah?

IQ Crew

And it's not clear how HP will swallow Autonomy, which makes other kinds of analytics software, as well as a lot of other enterprise software apps.

Thinkernetter

But HP is spending over $10B to buy Autonomy.

Thinkernetter

Folks: I forgot one huge item here: HP's acquisition of Autonomy!!

Thinkernetter

@SMK: No, IBM is 100 this year, so it was founded around 1911.

Thinkernetter

Mary -- true, and it's also the time for domination.  Wasn't IBM founded during the Great Depression?

Thinkernetter

I know I am preaching to the choir here, but I felt it worth repeating.

Thinkernetter

What I'm saying is that there isn't as much room for error as there is in a more robust economy.

Thinkernetter

It's also a time when the management of any tech company has to be on the ball. Really on the ball.

Thinkernetter

@Nicole: It is a time when the CEO is a crucial position.

Thinkernetter

Well it's good to see a race. Always good to see competition.

IQ Crew

Other companies play, too, with smaller but nonetheless significant portions: SAS, Angoss

Thinkernetter

So really, it seems the analytics segment is down to a race between Oracle and IBM.

Thinkernetter

Bizarre. I really wonder what's going on with top management at some of these major firms.

IQ Crew

HP has other problems, too. Its management keeps hobbling it.

Thinkernetter

Meanwhile, HP's chief competitors have been in the software game, beefing up analystics as a priority, for YEARS

Thinkernetter

IBM has gobbled up key startups, thrown lots of resources into analytics, made it a priority. HP has not. And yes, HP is trying to redefine itself maybe 5 years too late.

Thinkernetter

HP is in the midst of trying to redefine itself, right?

IQ Crew

HP doesn't have the head start that Oracle and IBM have in this area.

Thinkernetter

Software is also IBM's biggest segment, and here's what Zacks reminded us about last week: "n 2010, IBM acquired a number of companies such as Clarity Systems, Open Pages, Coremetrics and most significantly, Netezza, which expanded IBM’s business analytics portfolio."

Thinkernetter

I say this as I'm pondering some of Google's acquisitions in the past year which have been reckless... as is evidenced by its decision last week to shut some of these little companies it acquiried down, like Aardvark.

IQ Crew

This move also is being talked about as a "spoiler of the HP dream" of becoming a big software presence.

Thinkernetter

Very true. I think it's a good partnership. It's always comforting to see an acquisition that makes sense for all parties.

IQ Crew

Well, IBM no doubt brings huge R&D in this field, as well as the means to create and market i2's products, and also to make them into a cloud service.

 

Thinkernetter

Absolutely true, re: "a lot of data but not a lot of intelligent interpretation" smk. That's where we are right now. Companies are scrambling to figure out how to make sense of it all.

IQ Crew

A big feature of i2's software is its ability to track unstructured data.

Thinkernetter

So I'm also wondering not just what i2 brings to IBM, but what IBM will be bringing to i2.

IQ Crew

I have a feeling that IBM might be popping up on the "World Domination" radar pretty soon if it keeps buying analytics.  I think we have a lot of data but not a lot of intelligent intrepretation.

Thinkernetter

BTW, folks, as we speak, I am experiencing gale force winds just outside my office.

Thinkernetter

The databases contain lots of data from "operatives" and other sources worldwide.

Thinkernetter

Those initials are all intelligence databases.

Thinkernetter

Yes, the military uses i2 software to do the following, per i2: Over the years, our applications have been used across the world to analyse, process, fuse and disseminate data from HUMINT, SIGINT and OSINT sources. Today, i2 technology is a world-wide acknowledged currency for the exchange of intelligence between military forces

Thinkernetter

I'm very interested in that kind of application, Mary, as well as how this can be used to help the military.

IQ Crew

Actually, here's the deal The link you provide is to i2 Technologies, versus i2. The Technologies portion was sold off in 2010 and wound up as part of a scandal too.

Thinkernetter

Great catch, simafore! I'm investigating -- in real time!

Thinkernetter

Anyway, back to smart cities. IBM sees i2 offering a way for police to track criminals in specific geographic areas, I guess by using input from multiple police reports.

Thinkernetter

Mary thanks. I was confusing them with this one http://www.jda.com/company/i2-acquisition/

 

Rank: Cave Painter

We hear about the great software migration all the time.

Thinkernetter

Yes, Nicole. The whole move to software -- served up in clouds -- is behind HP's recent move to sell off its hardware.

Thinkernetter

What I mean is they seem in line with IBM's most prominent and forward-looking goals right now.

IQ Crew

In its press statement, IBM mentioned "smart cities" applications. Presumably, the i2 deal will address that.

Thinkernetter

Ah yeah I saw that blog from Todd. It's good to see these acquisitions. They seem strategic and likely to move IBM's business forward.

IQ Crew

Cloud-based analytics services could help out companies of all sizes, I think.

Thinkernetter

Mary, can you talk more about what the anticipated technical hurdles are? I'm a little unclear on that.

IQ Crew

For example, we heard recently from IBM blogger Todd Watson that IBM is also buying a risk analytics company.

Thinkernetter

@N'cole, yes for sure. IBM is also buying other analytics firms like crazy.

Thinkernetter

Yes I gathered that from your blog -- also that IBM was savvy in swooping this one up, considering others probably had their eyes on it.

IQ Crew

Not sure, SMK. One thing, though: IBM indicated to me that this could be offered in a cloud.

Thinkernetter

@Nicole: Yes. There are other companies that do this, but apparently they aren't quite as experienced in it as i2.

Thinkernetter

So I'm assuming IBM will repackage the service?  Maybe make security for SMB a little easier?

Thinkernetter

So, the software looks over bunches of bank transactions, finds ones that, according to various formulas, comprise red flags for fraud, and puts that info into a readable visual report that can be sent around to different workers.

Thinkernetter

And Mary, this should ideally help IBM with its "smarter cities" efforts, right?

IQ Crew

@Mary that's a great advertisement for the product, I'd say.

IQ Crew

Semifore, here's how i2 states its mission: "Our Products and Solutions are used every day by investigations, analytical and security personnel from major Telecoms, Financial, Insurance, Legal, Pharmaceutical and Retail organisations to detect and prevent fraud, credit card crime and other evolving threats."

Thinkernetter

Indeed, SMK. This deal with boost IBM's security profile.

Thinkernetter

Hi simfore. I do not think i2 makes supply chain analytics software.

Thinkernetter

If I interpret the post properly, basically it's good news for the security side of business?

Thinkernetter

The key here is that the software gathers all kinds of intelligence from many data sources, like the international intelligence databases, makes sense of it and presents it to users. Then they in turn can INTERACT on the basis of what the system finds.

Thinkernetter

Welcome, simafore, we're glad to have you here.

IQ Crew

[First time in this type of interaction]. BTW did i2 also make supply chain analytics products?

Rank: Cave Painter

Here's how the company puts it: In Afghanistan, 36 out of 44 countries involved in the International Security Assistance Force (ISAF) take full advantage of i2 Defence Solutions to maximise their intelligence collection, analysis and dissemination capabilities.

Thinkernetter

I like "Ping". :) Although on the CMO Site I used to get people thinking I was referencing Pong and a children's book that I had as a child.

Thinkernetter

One "use case" for i2 software is by NATO, which uses it in the field to track enemy activity.

Thinkernetter

Always greeting us with a ping. :)

IQ Crew

Yes, I feel bad for him. Hope he is on the ment!

Thinkernetter

Welcome to the chat, smkinoshita!

IQ Crew

Me too, Mary. I'm curious about what technical hurdles people are worried about.

IQ Crew

We are down one editor today. Poor sickly Kim.

IQ Crew

I find the applications associated with i2's analytics to be really interesting.

Thinkernetter

Thanks for the intro Ms. Jander.

IQ Crew
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