(Bloomberg) -- International Business Machines Corp. formed a partnership with Juniper Networks Inc. to create networks with built-in analytics, harnessing big data to improve mobile and other applications.
IBM and Juniper will design and sell tools to help businesses analyze information, update operations, reduce costs and improve how applications run, according to a statement Tuesday. This could involve customizing experiences for watching videos, running business apps or managing Web-connected devices.
The two companies are under pressure to boost the appeal for their products by forging partnerships as a surge of newer competitors has arisen in enterprise technology. Sales at IBM and Sunnyvale, California-based Juniper fell last year, prompting both stocks to decline in 2014.
“The relationship is very strategic with Juniper,” Inhi Cho, vice president of strategy for IBM’s analytics business, said in an interview. “It provided a great opportunity for us to scale and accelerate new capabilities. Analytics is not a separate capability, but it’s actually something embedded in the network.”
The partnership is especially targeted to helping communications service providers resolve bottlenecks in data flowing through networks, Cho said from IBM’s InterConnect conference in Las Vegas.
Cho declined to provide terms on the deal or details on how much money IBM expected to make from it.
Investors have been focused on IBM’s sales, which have fallen for three straight years. The company has looked to areas like data analytics and cloud computing to make up for weakened demand for traditional services and hardware.
IBM, based in Armonk, New York, has also collaborated with Twitter Inc. to help analyze the stream of social media posts, though revenue from that endeavor has not been disclosed either. Juniper has been losing market share to Cisco Systems Inc. and to smaller competitors such as Arista Networks Inc. and Brocade Communications Inc. Since it sells primarily to large phone companies and big data center operators, Juniper is particularly threatened by a trend called software-defined networking that lets these sophisticated customers run systems on cheaper equipment that they design themselves. Earlier this month, Facebook introduced such a system.
Cisco has already unveiled its own data-analytics software packages. Focusing on real-time information analysis, the eight sets of programs introduced in December aim to help retailers and other large companies better use Web-connected devices.
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