The OEM deal, which applies worldwide, extends Business Objects’ reach into IBM development sites. Crystal 10 will provide integrated reporting capabilities for WebSphere Studio and Rational developers.

Paris-based Business Objects says its software already has open integration paths to both the WebSphere and Rational environments.

Business Objects CEO, Bernard Liautaud, called the move a significant milestone in its relationship with IBM. The move is also timely since IBM acquired Alphablox Corp, a privately-held BI application development platform provider last week.

Some analyst questioned whether it might signal an end to IBM’s traditionally neutral stance in BI.

Earlier this month IBM announced that it will no longer be compensating its sales people for selling data integration software from another close partner, Ascential Software Corp.