International Business Machines Corp. (NYSE:IBM) Moves Ahead Of The Competition With Data Service Business From Twitter Inc (NYSE:TWTR)

Last year’s partnership between International Business Machines Corp. (NYSE:IBM) and Twitter Inc (NYSE:TWTR) is only just starting manifest. Both companies on Tuesday announced their intention to launch the partnership’s first products. The first products will include developer tools as well as cloud-based data analysis services designed to extract twitter data. Watson Artificial Intelligence Technology, IBM’s platform will run the data services. IBM will also use its open source software to handle big groups of data across a number of computers.

Technical analyst have identified strong buy signals in IBM.

IBM possesses one of the world’s largest portfolios pertaining to big data and analytics consultation. Additionally, the company has the requisite expertise based on its large clientele and experience drawn from over 40,000 prior engagements. However, it should be noted that IBM’s deal, with Twitter is not exclusive. The company faces massive competition from seasoned miners of data such as Oracle, Adobe, Salesforce, and SAS Institute.

New companies such as DataSift and Crimson Hexagon also pose serious competition to IBM. However, IDC’s analyst, David Schubmehl, notes the IBM’s advantage could be the fact that the company geared its attention in using Twitter’s data widely. It doesn’t only market, but it also does talent management, product development as well as churn analysis. Mr. Schubmehl further believes that IBM’s knowledge of a number of other industries gives it a competitive edge over its rivals. IBM also has a competitive edge in the fact that the company offers both internal and external corporate data from sources like Twitter Inc (NYSE:TWTR). This factor will pay off financially for the company.

The partnership will be geared towards three areas; International Business Machines Corp. (NYSE:IBM) analytics services on the cloud being integrated with Twitter Data, consultation focused on specialized areas and the development of newly formed data intensive capabilities. As a result of the partnership, IBM plans to train over 10,000 of its employees in data handling skills on Twitter. Recently, IBM provided training to over 4,000 consultants and engineers on how to incorporate Twitter data in business projects.

Abbott Michael

Abbott Michael

Michael joined US Markets Daily in 2009 and is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments.