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Press Release Summary:

With Netezza Network Analytical Accelerator, communications service providers can analyze petabytes of customer and network data to gain insights into customer experience, secure new customers, and track overall health of network. CSPs can analyze calling plans and contract terms to see which are driving revenue, and understand how each customer is using voice and data packages. Appliance also helps prevent network disruptions, create targeted marketing programs, and further monetize data.

Original Press Release:

IBM Launches Netezza Appliance to Help Communications Services Providers Analyze Networks and Gain Consumer Insight

LAS VEGAS, -- IBM (NYSE: IBM) today announced a new network intelligence analytics appliance to help communications services providers (CSPs) analyze up to petabytes of customer and network data in minutes. The new appliance gives CSPs the power to turn their data into valuable insights to enhance the customer experience, secure new customers, generate cost savings, and track the overall health of the network.

CSPs are challenged to boost revenue and keep costs low at a time when customers are demanding more data-intensive products and services. The explosion of Smartphones, tablets and other mobile devices means consumers can do just about anything on the go, from checking the weather to watching movies, and posting to Twitter or Facebook while downloading music. This digital lifestyle has consumers crunching ever-growing amounts of data for browsing, streaming video, gaming, and social networking, placing a strain on network resources.

The IBM Netezza Network Analytics Accelerator addresses this issue and provides an analytics platform that CSPs can use to improve network performance and gain insights on customer experiences. Using the new appliance, CSPs can slice and dice customer data to analyze calling plans and contract terms to see which are driving revenue, understand how each customer is using voice and data packages and the impact on network resources, and spot new market opportunities by learning how customers use different types of handsets.

"Consumers are becoming more empowered and increasingly discerning about their service provider choices and how they access information. The fact is, they have more options than ever before," said Scott Stainken, general manager, IBM Global Telecommunications Industry. "Developing a deep understanding of the customer, their experience, and their digital lifestyle means CSPs can better allocate network resources and create more targeted services using IBM analytics. This is both a challenge and opportunity for CSPs, and those that embrace analytics now will gain a competitive advantage."

Most network analytic offerings only look at specific systems or network devices, retain certain information for a short amount of time, and have limited reporting capabilities and rigid data access. This inhibits a CSP's ability to identify patterns and trends or ask questions on-the-fly. Netezza analytics can view all customer data and speed up the flow for instant analysis on demand.

Using Netezza, CSPs can prevent network disruptions, create targeted marketing programs and further monetize the data. For example, users who look at sports sites between identified peak hours on particular handsets may switch to another service provider or decide to stay with their existing provider based on behavioral triggers generated by marketing campaigns.

According to a recent publication by the International Telecommunications Union (ITU), the number of Smartphones will increase from 500 million globally today, to almost two billion by 2015. In February 2011, ITU reported that Smartphone users consume five times more data capacity than users of ordinary mobile phones.

XO Communications is using Netezza to pull insight from customer data for better visibility into the customer experience. IBM SPSS predictive analytics scores customer data, while IBM Cognos business intelligence software allows everyone across XO to better share, consume and collaborate with the data more effectively.

"The ability to analyze customer data gives us a competitive advantage that is measured in reduced customer churn rates and increased customer retention," said Jamey Molsbee, executive director at XO Communications. "IBM business analytics helps us anticipate and stay ahead of industry changes at a time when consumers are demanding richer, more dynamic experiences from their mobile devices."

IBM Netezza appliances are workload optimized systems based on IBM BladeCenter technology that analyze petabytes of data significantly faster than competing options, and at a much lower total cost of ownership.

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