SAS Acquires Text Mining Software Developer

SAS announced the Teragram acquisition at its annual user and partner conference taking place this week in San Antonio. SAS also took the wraps off of SAS 9.2, a new release of the company's core data analysis, visualization and management platform.

SAS, based in Cary, N.C., has offered text-mining software since 2002 when it debuted SAS Text Miner. But the acquisition of Teragram will let it expand beyond the capabilities of that product, said Manya Mayes, SAS chief text mining strategist.

"We see an ever-expanding use of text in business intelligence," said SAS CEO Jim Goodnight in an interview. Unlike analysis tools that crunch structured data, text analysis software helps with applications that involve searching for answers to questions such as finding out the population of a city, he said.

SAS Text Miner uses statistical-based technology to analyze text while Teragram's text analysis engine uses rules and natural language processes. That will help SAS add text-mining capabilities to other SAS products including data quality management tools and analytical applications in such areas as warranty analysis and insurance fraud detection, Mayes said. The addition of Teragram also brings to SAS the next generation of mobile search technology.

SAS will be integrating the Teragram technology with SAS 9.2 this fall. The company will operate as a division of SAS and continue to sell its technology on an OEM basis.

The SAS 9.2 platform offers new data analysis algorithms and procedures for predictive modeling and forecasting. Such capabilities are needed to handle complex analytical tasks, such as operational research and retail/price optimization, that SAS tools are increasingly being used for. "The size of the problems we're having to solve is getting bigger and bigger," Goodnight said.

The new software also provides role-based interfaces for embedding analytics into business processes tied to users' jobs. SAS 9.2 also has improved data integration capabilities and enhanced deployment, configuration and administration tools.

SAS also announced an expanded relationship with data warehouse system vendor Teradata under which the core SAS system will run as a module within the Teradata environment. The companies are also developing pre-packaged SAS software to run on Teradata servers.

Goodnight said he has seen no signs of slowing sales as a result of the weakening economy. In the first two months of this year SAS sales are up 9 percent, he said. The company's sales increased 15 percent last year to reach $2.15 billion.

Goodnight, in a keynote speech Sunday night, said he believes business intelligence products are relatively immune from a recession given that they help businesses operate more efficiently in economic downturns. "I would even argue that [business intelligence] will thrive in a down economy," he said.

IDC projects that the business analytics market, including software and services, will reach $59 billion this year and $71 billion in 2010.