IBM's BAO Service Offering Is Positioned For Growth In 2010

In April 2009, IBM Global Business Services (GBS) announced the formation of its Business Analytics and Optimization (BAO) services organization, a move that IBM claimed would help clients make "a fundamental shift to a smarter, fact-based enterprise." Although the core of BAO's primary offerings are not new, the company's commitment to the new service offering sends a message about IBM's positioning in the evolving technology services marketplace. In particular, the vision for BAO aligns with two long-term trends that will be critical to the technology marketplace over the next five years: the emergence of Smart Computing and the evolution of business technology. Technology strategists need to carefully consider the implications of IBM's new offering and review how their own strategy will need to change along with these two important technology trends. In 2010, we expect other leading service providers to follow IBM's example, with more acquisitions, partnerships, and service offerings in the business analytics space.