IBM Acquires Weather Company to Supercharge Cloud Data Analytics

Last week IBM announced it would acquire The Weather Company’s B2B, mobile and cloud-based web properties, including WSI, weather.com, Weather Underground, and The Weather Company brand in a move intended to boost its data analytics capabilities. The company has big plans for the acquisition, especially for Watson but is probably not thinking of streaming weather images onto the z System.

IBM Weather Company

IBM to acquire the Weather Company

Maybe it should. How many of the z Systems logistics, supply chain management, scheduling, and reservation systems rely on weather? Might be nice to get access to a couple of Weather Company APIs to pop weather data and analytics into z production systems.

Instead most of the weather goodies will go the Watson as IBM aims to improve the precision of weather forecasts by further deepening Watson’s IoT capabilities through the integration of global atmosphere and weather insights with enterprise information (hello zSystem) to create disruptive industry solutions that optimize decision-making. For instance, IBM reports that airlines can save millions of dollars annually by tapping multiple real-time and historical data sources to optimize fuel consumption, reduce delays and airport congestion, and improve passenger safety during disruptive conditions.

In short, the planned acquisition would bring together IBM’s powerful cognitive and analytics platform and The Weather Company’s dynamic cloud data platform, which powers the fourth most-used mobile app daily in the United States and handles 26 billion inquiries (more than its fair share from DancingDinosaur) to its cloud-based services each day. The plan calls to integrate real-time weather insights into business to improve operational performance and decision-making.

A few days earlier, IBM announced what it describes as a transformational approach to making the most of data, with the introduction of IBM Insight Cloud Services. Through collaboration with Twitter and The Weather Company, as well as the use of open data sets and business-owned data, IBM believes it can help clients cut through the noise of unstructured data, help turn streaming data into insights, and change critical business outcomes across industries such as retail, insurance, and media/entertainment.

As part of that announcement, IBM identified three specific actions it is taking:

  1. Provide four new APIs that developers can access from IBM Bluemix, IBM’s cloud platform, to incorporate historical and forecasted weather data from The Weather Company into web and mobile apps; and two APIs that allow developers to incorporate Twitter content enriched with sentiment insights
  2. Introduce new bundled data sets from IBM and The Weather Company customized for key industries and available on the IBM Cloud. The data packages can help insurers use weather data to alert policyholders ahead of hail storms that may cause property damage, help utilities forecast demand and identify likely service outages, help local governments to develop detailed emergency planning in advance of severe weather, and enable many industries such as retail to use data to help optimize their operations, reduce costs, and uncover revenue opportunities ahead of changes in weather.
  3. Offer a set of pre-built solutions that leverage IBM Insight Cloud Services cognitive techniques to help enable business users to tackle very specific industry challenges. This expands a set of industry solutions IBM introduced in May 2015 that provide businesses with the ability to generate new types of insights based on customer behavior.

With the pending acquisition of the Weather Company properties IBM is able to further advance its capabilities in big data, analytics, cloud computing, and cognitive computing. These encompass what the company refers to as its strategic imperatives and, alongside the z, they delivered the only bright spot in IBM’s 3Q15 financials. As reported by DancingDinosaur here a few weeks ago: strategic imperatives revenue: up 27 percent year-to-year; Cloud revenue up more than 65 percent year-to-date.  Total cloud revenue hit $9.4 billion over the trailing 12 months. Cloud delivered as a service had an annual run rate of $4.5 billion vs. $3.1 billion in third-quarter 2014.  Business analytics revenue was up 19 percent year-to-date. With its plans for the Weather Company expect the numbers to grow in upcoming quarters. The Weather Company can also show IBM a thing or two about mobile, another top priority.

DancingDinosaur is Alan Radding, a veteran information technology analyst and writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at technologywriter.com and here.

Tags: , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: