IBM has recently announced its acquisition of Netezza for $27 per share which roughly translates to $1.7 billion. This acquisition is being seen as IBMs initiative to expand its business analytics.

Over the past few years since its conception, Netezza has provided data warehousing analytics appliances. It has become one of the leading to provide data warehousing, across a broad spectrum of business clients. The key reason for IBM to acquire Netezza was due to its “key differentiator at a time when organizations of all sizes are looking to gain more insight from their business information.”

IBM has thought out new marketing strategies through which it would like to expand its business presence. As Netezza had already been a business partner for IBM, it was a necessary decision to include Netezza within its expanding business horizons.  Steve Mills, SVP and group executive of IBM software and systems explained this business strategy as follows, “IBM is bringing analytics to the masses. We continue to evolve our capabilities for systems integration, bringing together optimized hardware and software, in response to increasing demand for technology that delivers true business value.”

IBM has over 6,000 consultants that are the stronghold of the analytics market. As a result in order to cater to the growing demand of the analytics market IBM has invested $12 billion in 23 analytic business activities. With the acquisition of Netezza IBM seeks to cut down on the cost and optimize on data warehousing analytics appliances.