Services for Organizations

Using our research, best practices and expertise, we help you understand how to optimize your business processes using applications, information and technology. We provide advisory, education, and assessment services to rapidly identify and prioritize areas for improvement and perform vendor selection

Consulting & Strategy Sessions

Ventana On Demand

    Services for Investment Firms

    We provide guidance using our market research and expertise to significantly improve your marketing, sales and product efforts. We offer a portfolio of advisory, research, thought leadership and digital education services to help optimize market strategy, planning and execution.

    Consulting & Strategy Sessions

    Ventana On Demand

      Services for Technology Vendors

      We provide guidance using our market research and expertise to significantly improve your marketing, sales and product efforts. We offer a portfolio of advisory, research, thought leadership and digital education services to help optimize market strategy, planning and execution.

      Analyst Relations

      Demand Generation

      Product Marketing

      Market Coverage

      Request a Briefing


        ISG Software Research Analyst Perspectives

        << Back to Blog Index

        Algorithmics Acquisition Deepens IBM Software for Financial Services



        IBM’s announced pending acquisition of Algorithmics is an important addition to the company’s portfolio of business applications aimed at financial services companies, and it is thematically consistent with its other acquisitions in risk management and analytics such as IBM’s OpenPages risk management documentation that I have already assessed. It’s also a good fit for IBM’s professional services organization, which has a significant position in the financial services industry.

        Analytic models are indispensable for supporting financial services operations and managing risk and regulatory compliance. Algorithmics has established a leadership position in this market with software that addresses a number of critical business needs in financial services, notably risk management for securities trading and credit, financial services operations management, collateral management, capital adequacy and liquidity risk management. The company has 350 customers and generated US$164 million in revenues in its September 2010 fiscal year. IBM indicated the Toronto-based company will continue to operate as an independent entity for the time being.

        The near collapse of the world’s financial system in 2008 and the subsequent reverberations have led to a rethinking of financial services regulation and especially capital adequacy. In the United States, the Dodd-Frank Act is in the process of adding a substantial number of new regulations and an expansion of regulatory reach. All of this will impact how most financial services companies manage risk, operations and regulatory compliance. The serious shortcomings of Basel II international capital adequacy rules to ensure capital adequacy have lead to Basel III. Meanwhile, I believe financial institutions are facing a new environment where optimizing the management of regulatory capital will join efficient regulatory compliance as a long-term determinant of competitiveness. Too much of the latter remains a manual or  only partially automated process in institutions with otherwise state-of-the-art financial systems.

        For vendors of modeling, analytics, operations and risk management software,  the banking sector probably has the best growth prospects of any industry for the next five years, but I expect insurance also to be an attractive market. IBM’s professional services presence in this vertical makes it likely that the company can derive significant incremental revenue from the Algorithmics acquisition.

        All the best,

        Robert Kugel – SVP Research

        Robert Kugel
        Executive Director, Business Research

        Robert Kugel leads business software research for Ventana Research, now part of ISG. His team covers technology and applications spanning front- and back-office enterprise functions, and he personally runs the Office of Finance area of expertise. Rob is a CFA charter holder and a published author and thought leader on integrated business planning (IBP).

        JOIN OUR COMMUNITY

        Our Analyst Perspective Policy

        • Ventana Research’s Analyst Perspectives are fact-based analysis and guidance on business, industry and technology vendor trends. Each Analyst Perspective presents the view of the analyst who is an established subject matter expert on new developments, business and technology trends, findings from our research, or best practice insights.

          Each is prepared and reviewed in accordance with Ventana Research’s strict standards for accuracy and objectivity and reviewed to ensure it delivers reliable and actionable insights. It is reviewed and edited by research management and is approved by the Chief Research Officer; no individual or organization outside of Ventana Research reviews any Analyst Perspective before it is published. If you have any issue with an Analyst Perspective, please email them to ChiefResearchOfficer@ventanaresearch.com

        View Policy

        Subscribe to Email Updates

        Posts by Month

        see all

        Posts by Topic

        see all


        Analyst Perspectives Archive

        See All