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IBM set to buy Ilog

Big Blue bids for business rules vendor

Written by Phil Muncaster

Computing giant IBM has made a move for French business rules software maker Ilog in an attempt to improve its business process management (BPM) and service oriented architecture (SOA) technologies.

The proposed 215 million Euros deal, which has been approved by Ilog's board, will now have to wait for clearance by French financial watchdog AMF and the French Ministry of Economy.

Ilog's Business Rules Management Systems technology allow users to manage change and complexity in their business processes, and speed up the process of making policy changes. IBM intends to integrate this with its existing BPM software.

Ilog technology will also be able to enhance Tivoli, Lotus and Information Management products, according to IBM.

"Companies across all industries are looking for technologies to help them manage their processes with more flexibility so they can keep up with changing business conditions," said Tom Rosamilia, general manager for IBM WebSphere. " Ilog's software allows businesses to more effectively manage and automate the decision-making process, giving companies an opportunity to react with incredible speed and accuracy.

Donald Light of analyst Celent said that because rules engines can make the business decision-making process more effective, automated and consistent, rules providers have become highly sought-after.

"With this move, IBM is looking to stay a step ahead of the other software powerhouses - SAP recently acquired its own business rules management solution, YASU Technologies," he added. "There are only a few leading rules engine providers remaining, which begs the question: 'who else is talking to whom now'? "

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