RealTime IT News

IBM Goes After Legacy Data

Hearing that analysts had found 60 percent of enterprises still had non-relational information stored on networks, IBM went out and bought up a company that could convert that legacy information.

On Tuesday, Big Blue officials announced the acquisition of Santa Clara, Calif.-based CrossAccess Corp. Financial terms of the deal were not disclosed. Officials expect the acquisition to close by the end of the year.

The 24 employees at CrossAccess will move to IBM's data management software group offices when the deal is completed, and immediately thereafter begin selling the service as an IBM-branded service.

According to Lori Bosio, analysts found that 60 percent of companies still had non-relational data stored on the company servers from the 1960s and 1970s. Rather than switching to a relational database -- like Oracle , Microsoft or even IBM -- she said companies would find it much cheaper to just convert the information.

"So while competitors will say 'hey, start from scratch, rip out all those data stores you have in your environment,' and store them in an Oracle database or Microsoft database, we're saying leave what you have in its place and we'll provide you with the software to access it," Bosio said.

IBM got its information from a report released recently by IDC, which found that as much as 40 percent of IT budgets was going towards business software integration. The research firm expects integration spending to top $10 billion industry-wide by 2006.

In addition to selling the software as a stand-alone product, CrossAccess' technology will be integrated itself into IBM's DB2 Information Integrator software and sold as a bundled package.

"Businesses today are faced with the challenge to drive more value from their existing information assets, said Janet Perna, IBM data management software general manager, in a statement Tuesday. "With the addition of CrossAccess technology and its expertise in mainframe data access, IBM is bringing more value to customers faster in helping them leverage their information across and beyond the enterprise."