Recently, the huge announcement of the strategic alliance of IBM and Twitter has become a hot topic within the industry. Announcing the deal, both companies has presented their logos side to side, both in blue, to show their “mutual” aspects and its potential growth from this partnership.

Ginni Rometty, the CEO of IBM acknowledges Twitter feeds as a valuable source of growing data, which in collaboration with IBM’s analytic software will benefit the company(IBM) in competing against market leaders including Amazon, Google and Microsoft.

On the other hand, the CEO of Twitter Costolo also finds great potential in this strategic alliance. He believes that this partnership will enable Twitter to expand its target market, and that its data will become useful to greater number of businesses.

The strategic alliance between IBM and Twitter in my opinion, gives both firms a competitive advantage against its rivals. They are of mutual benefits from this partnership; by pooling capital or funds together and making technological improvements, both businesses are able to expand their target market and enhance product development. I think that the strategy to apply data from the network to real-time business decisions is very clever, because the internet has grown to become an essential part of communication and networking in our lives.