IBM to buy StoredIQ for undisclosed price
Acquisition will add to company’s stable of data management firms.
StoredIQ, founded in 2001 and involved in‘big data analytics,’ helps companies respond more efficiently to litigation and regulations.
IBM Corp. said Wednesday it has agreed to buy Austinbased StoredIQ for an undisclosed price.
StoredIQ, founded in 2001 and involved in “big data analytics,” helps companies respond more efficiently to litigation and regulations and dispose of data that has outlived its purpose. The Austin company had raised $40 million in private investment by 2010 and had 50 employees.
IBM Vice President Ken Bisconti said many firms are beset with growing mountains of business data, most of which is of little business value. The computer giant calls that expanding field information life cycle governance and says it has become a big cost center for large companies that are subject to lawsuits and regulatory compliance.
StoredIQ’s software enables companies to dispose of unneeded data in a consistent, automated and legally defensible manner, Bisconti said. It also helps companies streamline the amount of data that is relevant to legal discovery requests, and so have substantial savings in responding to electronic discovery requests.
Research firms estimate that the global market for data governance solutions is about $4 billion a year and growing at about 14 percent a year.
IBM has invested more than $16 billion in buying more than 30 analytics-related technology companies over the past several years. The acquisition of StoredIQ builds on IBM’s 2010 acquisition of PSS Systems and Vivisimo in
adding to IBM’s capabilities in rapid discovery, effective governance and timely disposal of data.
“Chief information officers and general counsels are overwhelmed by volumes of information that exceed their budgets and their capacity to meet legal requirements,” said Deidre Paknad, IBM’s vice president of information life cycle governance. “With this acquisition, IBM adds to its unique strengths as a provider able to help CIOs and attorneys rapidly drive out excess information cost and mitigate legal risks while improving information utility for the business.”
Phil Myers, CEO of StoredIQ, said his company and IBM are longstanding partners in data management. “Together, IBM and StoredIQ can empower organizations to more efficiently use and govern their unstructured data to increase its value and eliminate unnecessary cost and risk.”
‘With this acquisition, IBM adds to its unique strengths as a provider.’ Deidre Paknad,
IBM’s vice president of information life cycle governance
StoredIQ has more than 120 customers worldwide, including leaders in financial services, health care, government and manufacturing. The acquisition is expected to close in the first quarter of 2013. 25 percent next year to oversee the growth.