This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

IBM Filling Up on Data

Updated from Nov. 25

IBM (IBM - Get Report) is betting a billion dollars that it can parlay its investment in a complex technology used to aggregate disparate threads of corporate data into a serious competitive advantage over rivals Oracle (ORCL - Get Report) and SAP (SAP - Get Report).

In the last three last years, Big Blue has built a 1,000-person business unit, acquired five privately held companies, and spent heavily on R&D in an effort to exploit the growing market for master data management, or MDM.

Why spend so much? By 2009, the MDM market is expected to grow to $10.4 billion, from $5.4 billion, a compound growth rate of 13.8%, according to market research firm IDC. By contrast, the market for database software is growing at a compounded rate of just 6.4%, though from a much larger base. What's more, master data technology is closely related to both middleware and database software; winning in MDM opens the door to lucrative cross-selling.

Simply put, MDM attempts to give businesses a single, accurate view of customers, partners or suppliers, by drawing data from separate stores of data scattered across an enterprise.

Daniel Drucker, who heads IBM's MDM business, illustrates the benefits of the technology by recounting the experience of a Las Vegas casino that nabbed a card cheat. Casino security officials ran the cardsharp's phone number through the MDM system and found that it matched a phone number the dealer gave on his employment application two years previously. Both were arrested.

"For the last 30 years, companies have deployed applications, but each one only looks at a piece of the data," Drucker says. Data on a customer's mortgage, for example, that are stored in one software application are often not available via other applications used by the same company. So, a call-center staffer might miss the opportunity to sell mortgage insurance or another related product when the customer calls on another matter. Even worse, data in one store may be older and no longer accurate, as addresses and phone numbers change.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
IBM $160.84 0.22%
ORCL $43.34 -1.60%
SAP $70.35 -1.10%
AAPL $129.26 0.13%
FB $79.40 -0.45%

Markets

DOW 18,202.99 -85.64 -0.47%
S&P 500 2,107.74 -9.65 -0.46%
NASDAQ 4,976.7810 -31.3150 -0.63%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs