IBM refocuses software on specialized industries
Middleware packages to focus on insurance, banking
IBM said this week that it will reorganize its software business, a move that will include shifting development efforts away from its five software brands and toward cross-brand application packages tailored for specialized industries.
A Big Blue official said this is the most significant strategic change for its software group since its 1999 decision to exit the applications market.
The changes will come throughout 2004, and will affect all aspects of IBM’s software group’s operations. In January, for instance, the company plans to announce a slate of middleware packages for industries including insurance, banking, financial services, automotive, retail, consumer packaged goods, utilities, telecommunications, electronics, health care, government, and life sciences.
IBM cited its forthcoming insurance industry offering as an example of its new approach. The bundle will be an integrated package of applications including WebSphere for managing claims processing and workflow, DB2 Information Integrator for aggregating claims information from disparate databases, and Lotus Notes as a front end for insurance agents.
Also in the works are packages to help retail companies manage store operations, marketing, and inventory, and an automotive industry bundle with support for dealer collaboration and build-to-order manufacturing.
Analyst Josh Greenbaum, principal at Enterprise Applications Consulting, said IBM’s effort to verticalize its systems software reflects a larger industry trend. That trend has seen apps vendors, such as SAG, take steps in recent months to build more industry-focused functionality into their software. The tactic appeals to customers looking to save on integration and customization costs, Greenbaum said.
