IBM sees analytics growth rise, starting next year (KDnuggets News 09:16, item 37, Briefs)

KDnuggets : News : 2009 : n16 : item37

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Briefs

IBM sees analytics growth rise, starting next year

IBM sees analytics growing 15-20 pct from 2010

IBM sees analytics sales topping $2 bln from 2010

Wins defense contract (Adds comments by executive, details on defense contract)

NEW YORK, Aug 13 (Reuters) - IBM said on Thursday it expects revenue at its analytics business to grow by around 15 to 20 percent from next year on, as the fledgling unit wins more contracts.

International Business Machines Corp (IBM.N) said the analytics business, which helps clients plot trends, predict risk and cut costs, is likely to account for more than $2 billion in revenue in 2010 -- a fraction of IBM's 2008 revenue of $103.6 billion. This year, revenue from analytics could grow by about 10 percent, it said.

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IBM has shifted its focus from hardware to more profitable software and services over the past decade and has recently positioned the analytics business as a key growth driver, as it yields higher margins than the average IBM product or service.

The company announced late last month that it plans to buy business analytics company SPSS Inc (SPSS.O) for $1.2 billion in cash to better compete against rivals like Oracle Corp (ORCL.O) and SAP AG (SAPG.DE).