IBM Snags SPSS, May Be Bad Timing

July 29, 2009

IBM bought SPSS. Most third and fourth year statistics majors learn to love either SPSS or arch-rival SAS. MicrostAT just does not paddle fast enough for the serious stats whiz. You can read about the deal on the IBM Web site or on TechCrunch.

I liked the “Monster Merger” story. The guts of the deal are presented. For me the most interesting comment was:

IBM says it will continue to support and enhance SPSS technologies while allowing customers to take advantage of its own product portfolio. SPSS will become part of the Information Management division within the Software Group business unit, led by Ambuj Goyal, General Manager, IBM Information Management.

Right.

What I have not seen is a discussion of the SPSS text processing functions. IBM has its OmniFind and a legion of partners to deliver text processing functions. Then there is the Web Fountain system. You do remember Web Fountain, don’t you. The brainiacs at Almaden continue to labor away in text processing.

Now IBM gets PASW which counts, categorizes, and performs other content processing operations. SPSS bought Lexiquest and has added functionality since that deal in 2002.

The plumbing for SPSS text processing has these components:

SPSS, like IBM, requires a commitment from a licensee. IBM may be joining the party a bit late. The shift to lighter weight analytic tools is underway. Newcomers like Clarabridge have been holding their own. SAS’s purchase of Teragram and its open sourcing some of Teragram’s software makes it clear that the good old days may be receding in the rear view mirror. SPSS can be a real resource hog. That should make IBM happy. IBM loves to sell consulting but a close second is selling hardware and engineering support. SPSS has not made the leap to Web services.

In short, I think the text processing components of SPSS may get lost and quickly within the massive IBM organization. Furthermore, this deal may have been made at the right time for SPSS and maybe the wrong time for IBM. Just my opinion.

Stephen Arnold, July 29, 2009

Written by Stephen E. Arnold · Filed Under Business strategy, Enterprise, News, Text analytics, Text processing

Comments

One Response to “IBM Snags SPSS, May Be Bad Timing”

Steve on December 28th, 2009 9:00 am

Hi Stephen,

I may have missed the memo, I didn’t know that SAS was open sourcing any Teragram technology. Can you provide a link or reference that describes what SAS is open sourcing?

Thanks!
Steve

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Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.