Princeton’s Optim line of data archiving, test management, data privacy, and data classification software that is used by 2,200 companies worldwide to streamline their database performance by segregating historical data from current data and storing it securely and more cost-effectively.
Princeton claims that customers will not be forced to use expensive storage for older, seldom accessed records. That’s important as industry research shows that storage management will soon account for over 50% of an organization’s annual IT budget.
Optim can also be used to create test databases where sensitive data can be protected.
Ambuj Goyal, general manager of IBM’s Information Management division, said that Princeton’s software will be absorbed into IBM’s growing DB2-based data server portfolio, managed by IBM’s Software Group which is part of its Information Management division.
Princeton’s technology will also benefit IBM’s enterprise data governance capabilities by providing robust record retention support for regulations like Sarbanes-Oxley, HIPAA and SEC 17a-4.
Organizations face the challenge of effectively managing their surging data volumes across heterogeneous application and database environments, particularly given growing governance and compliance requirements, Goyal said.
The combination of our technologies will provide our customers and partners with a single solution to keep up with the variety of regulatory and enterprise data governance requirements.
IBM expects to retain all of Princeton’s 240-odd staff, most of whom are located at its headquarters in Princeton, New Jersey.
Princeton represents the 22nd software acquisition driven by IBM’s Information on Demand initiative that it launched several years ago. The goal is to assemble a broad enterprise data management software stack that provides customers with seamless data flows and access to structured and unstructured information across different platforms and locations.
The core of that strategy is driven by IBM’s Information Management division which reported 21% growth in revenue in the most recent second-quarter. Overall IBM’s software business grew 13% in the quarter to $4.8bn in revenue.
IBM expects Princeton in particular to contribute to its DB2 database business that has been growing rapidly since the second half of its last fiscal year. Late last year IBM unleashed its DB2 9 Viper database server, which the company claims has won significant new business from rival Oracle.
The deal is expected to close later in 2007 subject to the usual regulatory approvals.
Our View
The addition of Princeton to IBM’s growing information management portfolio targets an important need — regulatory and enterprise data governance. Companies have historically turned to data storage vendors like EMC, IBM, and HP for data retention needs. IBM can now offer this as part of a single platform build around its core DB2 data management servers. The Princeton buy should also shore up its new DB2 9 Viper offering in several key areas.
The acquisition is also IBM’s first major move to buy archiving technology; perhaps aware that it is running out of partners following a spate of consolidation over the past four years that has seen EMC snapping up Legato, Veritas buying KVS, CA purchasing email archiving firm iLumin, HP acquiring OuterBay Technologies, and last month Autonomy and Google snatching email archiving firms Zantaz and Positini.
