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Jan 7 2009   9:39PM GMT

Capt’s log: IBM closes deal to purchase optimization house iLog

Jack Vaughan Jack Vaughan Profile: Jack Vaughan

IBM has closed the deal to purchase established logistics and optimization software vendor iLog. The purchase, at a price now estimated at $340 million, was originally announced last July. iLog will become a part of IBM’s WebSphere operation.

Over the years, Ilog fashioned a unique potpourri of a business rule engine line, optimization and logistical supply chain management lines, and a front-end component or ‘visualization’ software line that spans both the .NET and non-.NET worlds.

While the rules engine can be expected to garner initial attention, fitting neatly atop IBM’s Java application servers, the visualization offerings may surprise.

According to IBM’s Sandy Carter, the company has already been able to demonstrate use of the iLog visualization components, WebSphere and IBM’s BPM suites working together. Carter also sees the various iLog optimization tools greatly enhancing IBM BPM efforts.

This is a good buy for IBM. iLog has installed itself on the global optimization stage. Optimization may be a ‘bright’ spot as companies rejigger business plans in the face of global downturn. Its other parts are innovative and have added new potential as they become part of the larger IBM portfolio.

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