tag:blogger.com,1999:blog-6452389006521661357.post8476829926954894605..comments2024-03-12T23:42:29.203+08:00Comments on Causal Capital: IBM Acquires ALGOCausal Capitalhttp://www.blogger.com/profile/10919572283927557081noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6452389006521661357.post-26134513635695880122011-10-23T21:32:12.967+08:002011-10-23T21:32:12.967+08:00Guys,
Sorry for the late posting on these comment...Guys,<br /><br />Sorry for the late posting on these comments, for some unknown reason they sat in the queue. Both comments are interesting and well informed thanks for posting.<br /><br />I would definitely agree with “IBM, on the other hand, I believe, are looking at the Group Risk initiatives of larger banks, including Basel III” and we got hint – “ I'll leave you construct the rest... methodology, pricing functions, data integration.... got the hint?”Causal Capitalhttps://www.blogger.com/profile/10919572283927557081noreply@blogger.comtag:blogger.com,1999:blog-6452389006521661357.post-83654885003855607932011-10-23T10:30:38.992+08:002011-10-23T10:30:38.992+08:00Dear Martin,
As a Financial Risk specialist (I...Dear Martin,<br /><br />As a Financial Risk specialist (I'm not sure what 'Causal Capital' does) let me 1st point out that comparing Moody's acquisition of Fermat, with Fitch's acquisition of Algo, is comparing the proverbial Apples to Oranges. Fermat is aligned with erstwhile Moody's KMV to bridge an offerings gap (now jointly called Moody's Anaytics), and Moody's smartly enough (unlike FITCH) did not try to get Algo married to the Rating Agency business. Fitch, therefore, had to "bring up" like the way you say their big lunch. They couldn't digest it.<br />IBM, on the other hand, I believe, are looking at the Group Risk intitiatives of larger banks, including Basel III, where Traded Credit and Counterparty Risk come together... I'll leave you construct the rest... methodology, pricing functions, data integration.... got the hint?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6452389006521661357.post-86687445781305348492011-10-14T10:57:09.500+08:002011-10-14T10:57:09.500+08:00hi guys, not sure if I would agree with some of yo...hi guys, not sure if I would agree with some of your comments. To be accurate, it is NEW IBM vs old IBM who acquired Algo, couple of years, I heard some comments when IBM acquired Cognos, hoping Cognos would teach IBM on business analytics, well, now it is Cognos who actually own Algo. Also, Algo was bought at a little over two times revenue multiplier compared with usual range of 3~4, not to mention HP's 10 times Autonomic deal. Someone mentioned about IT's inability on data, well, we all know the garbage in and garbage out, that is where IBM's traditional capability plays in. Plus, the compliance environment is getting complicated, so GRC tool like OpenPages does have synergy with Algo, e.g. OpVar, etc. Finally, Cognos cares about reporting, risk attributions will be seen across functions, etc. Bottom line is that a canned solution will be not sufficient in the future, it has to be viewed in a holistic picture both business and IT. But I would agree, there is always a gap between vision and reality, not to mention that complexity that is hard to be grasped by people who are comfortable in one domain...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6452389006521661357.post-43821088842575526282011-09-02T18:22:15.825+08:002011-09-02T18:22:15.825+08:00For those that don't know, Algo was bought by ...For those that don't know, Algo was bought by Fitch for $175 million and sold to IBM for a tidy $387 million.<br /><br />I checked your figures because I didn’t believe they were correct but you're right!!! IBM paid too much for this.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6452389006521661357.post-22395334629716333922011-09-02T08:12:10.702+08:002011-09-02T08:12:10.702+08:00IBM may not have the sufficient insight or underst...IBM may not have the sufficient insight or understanding and appropriate skill set to tackle the hardcore Risk Mgt for IBs. Pretty much offer the high level general risk mgt to enterprises and hoping to synergize into a better suite of application with the takeover of Algo. <br /><br />IBM provides the technology and Algo to provide risk knowledge and skill set. Doubt if this will work out in the long term.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6452389006521661357.post-1944789403043470602011-09-02T03:38:57.775+08:002011-09-02T03:38:57.775+08:00Hmmm, how is IBM going to get past their political...Hmmm, how is IBM going to get past their political master, the CIO to the CFO on this one? Finance departments may have something to say about this given IT's inability to support the "gold standard" data needs of finance.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6452389006521661357.post-26778725209874642222011-09-01T20:54:10.868+08:002011-09-01T20:54:10.868+08:00I have this fear that the cost of implementing alg...I have this fear that the cost of implementing algo products is going to rise. Can you buy the tools without the implementation team?Anonymousnoreply@blogger.com