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IBM & Trifacta to Jointly Develop Data Preparation Tool

Zacks Equity Research

International Business Machines IBM and Trifacta have entered into an agreement to jointly develop a new data preparation tool called InfoSphere Advanced Data Preparation. The solution is aimed at bringing big data, machine learning and AI solutions to users thereby easing there DataOps and accelerating the process.

The initiative is intended at helping users in managing their data and access analytical and decision-making applications by “formatting, structuring and enriching the datasets.” The move is also aimed at managing big data workloads across multi-cloud, edge architectures and hybrid on-premises for AI related demands of businesses. We believe, customers pertaining to manufacturing, healthcare, retail, IoT and financial services are well poised to benefit from the deal.

With rapid accumulation of data, enterprises require applications and security to help them arrive at business decisions faster than ever. The collaboration will cater to this need and also provide customized tools to address problems related to AI solutions owing to reduced data quality and ineffective preparation procedures.

International Business Machines Corporation Price and Consensus


International Business Machines Corporation Price and Consensus
International Business Machines Corporation Price and Consensus

International Business Machines Corporation price-consensus-chart | International Business Machines Corporation Quote

More About The Deal

Trifacta is a big data startup that helps businesses structure globally via data preparation. Notably, more than 50,000 Data Wranglers across 12,000 companies utilize the company’s solutions. The agreement will expand IBM’s capabilities in big data analytics.

Enterprises are increasingly striving to digitally transform their business methods by leveraging AI. This shift calls for an innovative AI-infrastructure, which dynamically keeps customers abreast with the digital trends. Both the companies are leaving no stone unturned to constantly enhance their solutions, which in turn accelerate AI. Consequently, combining ML tools into their AI platform drives innovation.

According to Daniel G. Hernandez, Vice President of IBM Data and AI, "The new InfoSphere solution adds to our growing stable of dataops services and capabilities that are designed to help organizations automate much of the cumbersome preparation work and get to the business of conducting data science and building AI models fast."

Through this collaboration IBM will provide clients a solution that helps to accelerate analytics, business processes, data processing and predictive capabilities. Additionally, the agreement will help organizations in generating instant results and vast storage. Consequently, the agreement will improve business performance of IBM’s clients.

What Investor’s Need to Know

Tech companies are ramping up their AI portfolios to meet emerging demands. The basic needs can only be met when the companies enhance their software systems to incorporate modern ML capabilities. This in turn helps them make AI more accessible to clientele.

In fact, per Gartner data, 40% of new enterprise applications deployed by service providers will comprise AI technologies, by 2021.

Moreover per a Forbes article, ML patents witnessed a CAGR of 34% between 2013 and 2017, making it the most rapidly growing category among all patents granted. The article also reveals that per IDC, spending on AI and ML is expected to grow to $57.6B by 2021 from $12B in 2017.

We believe that enhancement of the ML tools is important for an AI-driven future in tech sector and consequently, the collaboration to develop this new tool will act as a tailwind for IBM.

Zacks Rank & Key Picks

IBM carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Match Group, Inc. MTCH, Universal Display Corporation OLED and Autohome Inc. ATHM, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Match Group, Universal Display and Autohome have a long-term earnings growth rate of 15.2%, 30% and 20.9%, respectively.

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