IBM Constructs Private Cloud for Business Analytics

Vendor also offers new private cloud solution for customers based on same architecture.

November 17, 2009

D.H. Kass

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IBM Corp. said that it will extend to customers the infrastructure and services behind a private cloud computing system for business analytics that it built for internal use by its employees.

The in-house version of IBM’s private cloud environment, dubbed Blue Insight, consolidates and virtualizes the vendor’s business intelligence and delivers it through a cloud computing model.

IBM said that the system provides its employees-- including sales and marketing, product development, engineering, and others--access to a wide range of client and market data.

A customer-focused solution, called the Smart Analytics Cloud, uses Blue Insight as a template and packages IBM’s business intelligence services, systems and software to help customers deliver shared information across their entire organization.

Business analytics focuses on developing new insights and understanding of business performance. IBM figures that by turning its mounds of data into actionable material, its sales and development communities will be able to ratchet up product and services value delivered to customers.

Blue Insight runs on a Systems z10 mainframe with 48 processors, capable of handling up to 10,000 secure transactions per second.

An IBM spokesperson said that the Blue Insight system currently is accessed by about 50,000 employees, a number that is expected to jump to 60,000 by year’s end and to 100,000 by the end of the first quarter next year.

The Smart Analytics Cloud solution includes the System z10 mainframe running the Linux operating system, IBM cloud services and IBM’s Cognos Business Intelligence solution.

IBM said that the Blue Insight system compiles structured and unstructured data from 100 different data warehouses. The cloud will house more than a petabyte of data, the vendor said.

“This new cloud and the insights that our analytics will provide are the next step in the continuous transformation of our business to better serve our clients,” said Pat Toole, IBM chief information officer.

“I expect this first-of-its-kind approach will help drive both new growth opportunities as well as have a significant impact on cost savings, which is exactly the kind of client-focused value that businesses are asking of their IT organizations.”

Benefits of the private cloud

Through Blue Insight, IBM expects its sales teams, by gaining a greater understanding of a customer’s relationship across the vendor’s entire organization, will be better equipped to predict products and services that will deliver the most value to customers.

In addition, IBM’s anticipates that its product teams will be able to more accurately adjust planning and development efforts by analyzing and interpreting sales history, industry trends and customer perceptions.

IBM said that it already employed three other cloud-based and analytics solutions internally, including a technology adopting program that enables employees to become early adopters and evaluators of technology; a research cloud that enables thousands of the vendor’s research and development employees to access technical applications needed for research projects; and, an analytics program used as a prospecting tool for new sales opportunities that has identified 100,000 leads to date.

TAGS: cloud computing,IBM,virtualization,consolidation

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