IBM reinforces its Appliance strategy with acquisition of Netezza

When IBM  acquired DataPower’s range of appliances in 2005, it caused some raised eyebrows; was IBM really serious about getting into the appliances game?. Subsequently the silence from IBM was deafening, and  people were starting to wonder whether IBM’s foray into the appliances market had fizzled out. However 2010 has been the year when IBM has made its strategic intent around appliances abundantly clear.

First it acquired Cast Iron, the leading provider of appliances for use in Cloud Computing, and now it is buying Netezza, one of the top suppliers of data warehouse appliances. Netezza has built up an impressive market presence in a very short time, dramatically accelerating time to value for data analytics and business intelligence applications. In addition, it has continued to extend its DataPower range, with the addition of a caching appliance and the particularly interesting ‘ESB-in-a-box’ integration appliance in a blade form factor. For any doubters, IBM has clearly stated its intentions of making appliances a key element of its strategic business plans.

This just leaves the question of why. Of course the cynical answer is because IBM must see itself making a lot of money from appliances, but behind this is the fact that this must indicate that appliances are doing something really useful for users. The interesting thing is that the key benefits are not necessarily the ones you might expect. In the early days of appliances such as firewalls and internet gateways, one key benefit was the security of a hardened device, particularly outside the firewall.  The other was commonly performance, with the ability in an appliance to customize hardware and software to deliver a single piece of functionality, for example in low-latency messaging appliances. But the most common driver for appliances today is much broader – appliances reduce complexity. An appliance typically comes preloaded, and can replace numer0us different instances of code running in several machines. You bring in an appliance, cable it up and turn it on. It offers a level of uniformity. In short, it makes operations simpler and therefore cheaper to manage and less susceptible to human error.

Perhaps it is this simplicity argument and its harmonization with current user needs that is the REAL driving force behind IBM’s strategic interest in Appliances.

Post to Twitter Post to Delicious Post to Facebook Post to LinkedIn

Comments are closed.


Twitter Goodies

Recent Comments

  • Gravatar icon of AJ Brown AJ Brown
    November 1, 2010 (8:36)
    CICS and PHP - DON'T PANIC It's great to see transactional support of any kind for a cloud language... be it PHP or not (whi...
  • Gravatar icon of Vivekanand Kurdikeri Vivekanand Kurdikeri
    July 16, 2010 (12:41)
    Does Micro Focus Server for SOA miss the point? I think Micro Focus has done a tremodeous introduction of Web Service from a COBOL. May not be a ...
  • Gravatar icon of Ian J Mitchell Ian J Mitchell
    June 15, 2010 (6:14)
    CICS and PHP - DON'T PANIC Hi Steve, Well, we don't actually *demand* that you host the PHP in regions separate to those ru...
  • Gravatar icon of Rick Warren Rick Warren
    April 3, 2010 (12:27)
    AMQP - Great idea, but it will never work As someone who has worked on DDS from an implementation perspective as well as an OMG standards p...
  • Gravatar icon of Steve Craggs Steve Craggs
    December 12, 2009 (9:15)
    Did Teilhard's JuxtaComm patent wipe out IBM, Microsoft and SAP? Subsequent to my post, the Calgary Herald ran an article (http://www.calgaryherald.com/business/P...
  • Gravatar icon of John O'Hara John O'Hara
    December 10, 2009 (9:01)
    AMQP - Great idea, but it will never work Now, this is a late reply! @Thorlin. I looked at DDS before embarking on AMQP (I also looked a...
  • Gravatar icon of Jeff Darcy Jeff Darcy
    December 7, 2009 (2:40)
    Come in Texas East District Court, your time is up The important thing to remember about patents is that they're all about the claims. While the bu...
  • Gravatar icon of Emil Emil
    October 27, 2009 (9:08)
    BAM vs BI Good article. Thanks, Emil
  • Gravatar icon of Business Opportunities Business Opportunities
    October 23, 2009 (11:04)
    So Oracle got Sun - but why? Oracle has stepped up the rhetoric when it comes to its plans for Sun. In a message to Sun custom...
  • Gravatar icon of Gaurav Agarwal Gaurav Agarwal
    September 16, 2009 (1:15)
    IBM gets Cognos to fill the gaps IBM has two BAM solutions now Cognos Now! and Websphere Business Monitor. Why two BAM solutions f...