IBM’s Data-Crunching Cloud Plan

IBM, as for other IT vendors hyping the trend toward “cloud computing,” most real-world products have yet to match promises. Even as the company announced a lofty cloud computing road map last month, that plan to centralize companies’ information technology resources in hyper-efficient data centers either on-site or on IBM’s premises–has only taken shape in tame Web software offerings and a testing platform for software developers. IBM’s cloud-computing projects until now have been “low-hanging fruit,” says Clementi. “But analytics lends itself to cloud computing.

IBM will offer to handle specific data-intensive workloads as a service: tasks that often require large amounts of storage, including customer behavior analysis for better marketing, financial risk assessment, supply chain management or fraud detection. By offering those services in a pay-as-you-go model over the Internet, companies will be able to scale up their IT resources for occasional bursts of analysis. Companies can hoard large amounts of information far more efficiently in an off-site setup, where economies of scale and virtualization software make storage more efficient.

As companies attempt to control costs and use resources more wisely, IDC estimates that the market for business analytics software will swell to $26.1 billion this year, growing 7.8% over 2008. But IBM is putting significant muscle behind its new offerings. The new cloud analytics push will likely tie in software offerings from its acquisition of the French business optimization outfit ILOG last year, as well as business intelligence firm Cognos ( COGN - news - people ), which IBM acquired in 2007 for $5 billion, its largest buyout ever.

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