Watch Out, Oracle: IBM Is Hungry

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IBM (NYSE: IBM) is on the warpath. The target for IBM's ire is, per tradition, Oracle (Nasdaq: ORCL).

According to Israeli newspapers cited by Zacks Research, Big Blue is set to acquire database security expert Guardium for about $225 million. Guardium is a venture-funded start-up with a seven-year operating history. The company makes a living from making database access more secure. Guardium's products are designed to work with leading database platforms from IBM, Oracle, Microsoft (Nasdaq: MSFT), and others, but also tap into business intelligence solutions like PeopleSoft (owned by Oracle), Siebel (also Oracle), and Oracle E-Business Suite (take a guess).

Guardium comes with a rich network of industry partnerships that includes heavyweights like Cisco Systems (Nasdaq: CSCO), NetApp (Nasdaq: NTAP), and EMC (NYSE: EMC), besides all of the major database vendors. You could think of it as the TIBCO Systems (Nasdaq: TIBX) of database security -- neutral to all parties but involved with everyone.

The client list is equally impressive, though shrouded in the mystery of confidentiality. Guardium claims to provide database security and automated audit procedures to, among others, "3 of the top 4 global banks; 3 of the top 5 insurers; 2 of the top 3 global retailers; one of the world’s largest PC manufacturers; a global soft drink brand; and a leading supplier of business intelligence software." It's just up to us to figure out exactly which name-brand businesses we're talking about.

This acquisition puts a Big Blue hand in many pockets, but most obviously in Oracle's. With every enterprise-class Oracle installation, there's a decent chance that the customer will also opt for a Guardium security solution, which means a win for IBM even if its DB2 database or WebSphere intelligence platform aren't involved. IBM could take Guardium in-house, but I don't see that happening. IBM would lose much of the independent value it saw in Guardium to begin with.

This deal is not large enough to make a meaningful difference to IBM today, but it does show that the company still is serious about tackling archrival Oracle in the database and middleware markets. And it's doing so by opening its wallet. Stay tuned for more, and perhaps bigger, Big Blue acquisitions.