SPSS' Data Indicate a Lively Future

SPSS turns 40 this year, and the business is doing very well. The company was originally started to help academics. In fact, the name still bears the legacy of its statistical software system, with had the hefty title Statistical Package for the Social Sciences. Soon after the company started, SPSS realized that its analysis tools could be made more versatile for use in the corporate sector.

One of the benefits of SPSS' business is that it can help expand new revenue sources when the economy is doing well, but it also comes in handy in cutting costs during a downturn. When you need to count every penny, you want to make certain you're spending it wisely. One of the hurdles SPSS and all companies in this space face is convincing potential customers of the benefits of predictive analysis.

Getting Political

One of more intriguing applications of SPSS products is its use in political consulting. In fact, this is another reason why I believe the company's earlier projection is on the modest side. Political campaigns are large-scale operations, and they're adopting the technology to match.

Campaigns used to be made up of lots of eager volunteers going door to door or putting up yard signs. Make no mistake, that's still there. But there's also a growing element of high-tech information analysis.

If politics is nothing more than the marketing of a candidate, campaigns can use the same methods applied to any other consumer product. Many political organizations now use SPSS' software to find that ever-crucial swing voter. Carl Clark of the Southern Political Information Network said, "It's like having a treasure map when others may be just digging in the sand."

Political campaigns are often the ultimate study is getting the most resources for each dollar on budget. Barack Obama's campaign, for example, is one of the latest to use software from SPSS to help it crack the code of winning the Democratic primary battles. It's often the case that organizations have lots of data but no resources to help them turn their assets into useable strategies.

Shares of SPSS have slowly crept up over the past few weeks, but the stock is still well below the highs it reached last summer. This is an excellent stock to own in a skittish economy, not to mention a bruising political season.

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At the time of publication, Elfenbein had no positions in stocks mentioned, although positions may change at any time. Eddy Elfenbein runs the financial blog CrossingWallStreet.com, and has several years of experience in the financial newsletter industry. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Elfenbein appreciates your feedback; click here to send him an email.