IBM and Cognos announced they “have entered into a definitive agreement for IBM to acquire Cognos.” This leads to three questions. What is Cognos? And why is IBM purchasing them? Why should Cognos let IBM buy them?
What is Cognos? Cognos is “a publicly-held company based in Ottawa, Ontario, Canada.” According to their website they are “the world leader in business intelligence (BI) and performance management solutions.” They Proclaim they “provide world-class enterprise BI (business intelligence), planning and consolidation software and services to help companies plan, understand and manage financial and operational performance.” Steve Mills a Senior Vice President echoed their claims stating “We chose Cognos because of its industry-leading technology.”
Why is IBM purchasing them? “The acquisition of Cognos supports IBM’s Information on Demand strategy.” Cognos is just another piece as IBM has already acquired 23 other organizations for their strategy. IBM hopes the addition of Cognos “will enable new business insights to be delivered to a broader set of people across an organization, beyond the traditional users of business intelligence.” As Steve Mills sees the acquisition “together with Cognos, position us well for the changing Business Intelligence and Performance Management industry.” IBM sees the deal as a way “become the leading provider of technology and services for Business Intelligence (BI) and Performance Management.”
Why should Cognos let IBM buy them? One reason is “IBM intends to integrate Cognos as a group within IBM’s Information Management Software division, focused on Business Intelligence and Performance Management.” It will be led by current Cognos CEO Rob Ashe. Becoming a department within IBM and keeping the same Cognos leadership would indicate few job losses with the purchase. They are familiar with each other having “partnered for more than 15 years, with extensive technical integrations and eight pre-integrated joint solutions.” Rob Ashe added “this combination allows Cognos customers to leverage a broader set of solutions from IBM to advance their information management driven initiatives.”
Cognos is a leading business intelligence software and service company. It makes sense for IBM to purchase them, since the purchase supports IBM’s Information on Demand strategy, providing IBM to provide better services for current and future customers. It also establishes IBM as a leading provider of BI and performance management technologies and services. It makes sense for Cognos as they will become a division in IBM, with Cognos leadership. It allows Cognos customers to have better service. The two companies are familiar with each other so they should work well together in IBM.
Cognos Press Release
IBM Press Release