IBM/Netezza story updated with additional analyst comment.
Netezza makes a data warehousing appliance that competes directly with Oracle's popular Exadata device. Exadata helped boost Oracle's strong first-quarter results last week, and CEO Larry Ellison said Exadata could bring in more than $1.5 billion this fiscal year.
Ellison is no stranger to IBM-baiting, particularly in the aftermath of Oracle's Sun acquisition. But it seems that now Big Blue is doing some trash-talking of its own."I am happy to compete with Oracle and the Oracle/Sun mixture on the quality of our engineering," Arvind Krishna, a general manager within IBM's software group, told TheStreet Monday. "I am confident that, in any bake-off, we will win." Jim Baum, the CEO of Netezza, added that his firm's win rates against Oracle are "very, very high" and said that Netezza has racked up over 350 customers. These include the New York Stock Exchange (NYX), Time Warner (TWX), Neiman Marcus and eHarmony. Whether IBM has to up the ante for Netezza remains to be seen. Jayson Noland, an analyst at Robert W.Baird, believes that, given the strength of Netezza's technology, another bidder could easily enter the fray. "NEC stands out as an interested buyer to us though we would mention Hewlett-Packard (HPQ), Dell (DELL) and SAP (SAP)," he wrote in a note. "Though Oracle is unlikely, we would not rule them out and would guess they weren't pitched Netezza for competitive reasons." IBM and Netezza are longstanding partners and IBM's BladeCenter hardware already features within Netezza's data warehousing appliance, which would complicate an Oracle bid. Krishna also insisted that IBM's Netezza buy was not a reaction to Oracle's Exadata push, adding that the acquisition is part of a much broader technology effort. "Our stated strategy is to take [business] analytics mainstream to all employees in an enterprise," he said, adding that IBM has acquired more than 23 analytics companies in the last five years.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV