IBM's Acquisition of Cloudant and the Walmart Effect In Tech

Last week, IBM announced an agreement to acquire NoSQL database as a service vendor Cloudant for an undisclosed sum. An active contributor to the Apache CouchDB project, Cloudant delivers a JSON document database-based platform that claims high availability, scalability and elasticity amongst its attributes.
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Last week, IBM announced an agreement to acquire NoSQL database as a service vendor Cloudant for an undisclosed sum. An active contributor to the Apache CouchDB project, Cloudant delivers a JSON document database-based platform that claims high availability, scalability and elasticity amongst its attributes. Cloudant customers can take advantage of its JSON-based database as a service to store and mine structured and unstructured data from a variety of sources. Because the JSON database format is so widely used by developers of mobile and web applications, IBM's acquisition of Cloudant stands to strengthen its positioning with respect to the development of applications for mobile devices in conjunction with the build out of its OpenStack-based cloud solution for the enterprise. The acquisition of Cloudant will be central to IBM's MobileFirst solutions as well as its Worklight application for developing mobile applications. From an industry perspective, the acquisition represents a huge coup for the NoSQL space in general. CouchDB has historically not had the traction of MongoDB, Cassandra and Couchbase, so we should expect brand name tech companies to make similar offerings for the likes of MongoDB in the ensuing few months. Moreover, IBM's acquisition of Cloudant testifies to the increasing emergence of cloud and big data behemoths with solutions for both hosting infrastructure, as well as database solutions that accommodate enterprise needs for scalability and the ability to store unstructured data. Cloudant CEO Derek Schoettle surmised the significance of Cloudant's contribution to IBM's SoftLayer cloud platform as follows:

Cloudant's decision to join IBM highlights that the next wave of enterprise technology innovation has moved beyond infrastructure and is now happening at the data layer. Our relationship with IBM and SoftLayer has evolved significantly in recent years, with more connected devices generating data at an unprecedented rate. Cloudant's NoSQL expertise, combined with IBM's enterprise reliability and resources, adds data layer services to the IBM portfolio that others can't match.

Schoettle notes that IBM is extending its infrastructure innovations to the "data layer" and as such, follows in the footsteps of Amazon Web Services and EMC/VMware spin-off Pivotal, which similarly deliver a combination of cloud and big data solutions in their platform and product offerings. The notable consequence of this convergence of cloud and big data product offerings is that only large enterprises with the capital and resources to create or cobble together combined cloud-big data product offerings. As a result, cloud startups and smaller data vendors will need to continue to compete by way of their agility, responsiveness, consultative support and superior technology. In effect, the IBM acquisition of Cloudant signals a Walmart effect in technology, of sorts, whereby large, well capitalized vendors have the ability to create marts of diverse data and analytics products that threaten the viability of cloud, big data and analytics startups in the same way that massive retailers such as Walmart threaten the viability of independent stores or small chains. Oracle's recent acquisition of Blue Kai, a big data management platform geared toward marketing, constitutes another example of the way in which tech giants are continuing to integrate diverse data products into increasingly heterogeneous product portfolios. The question that remains unanswered, however, is whether the emerging Walmart technology maze is sufficiently easy to navigate that enterprises opt to partner either with one vendor for all of their technology needs, or whether they feel more comfortable shopping from a diverse range of technology vendors in order to avoid vendor lock-in and locate products that richly respond to the specificities of their industry-vertical and customer needs.

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