IBM unit to sell systems to ISPs

Big Blue creates new unit to sell hardware, software and computer services to ISPs.

ARMONK, N.Y. -- International Business Machines Corp. has formed a new business unit to sell hardware, software and computer services to the rapidly growing cadre of Internet service providers, industry executives said.

IBM (NYSE:IBM) plans to announce the unit Tuesday, industry executives said. The Internet Service Provider Industry unit will concentrate on sales and marketing of high-end computer systems and business software to ISPs. The group will be headed by James Corgel, a former Europe-based executive for IBM.

Proliferation of ISPs
IBM is creating the unit in response to the rapid expansion of the Internet and the proliferation of service providers -- from large telecommunications companies to tiny shops.

IBM will focus on three main sets of products: computer servers and other large computers, software for conducting business via the Web and messaging software to allow businesses to communicate with customers, industry executives said.

The company's big ISP customers include AT&T Corp., Deutsche Telekom AG and Sprint Corp. The unit will pull its sales, marketing and service staffs from existing units, industry executives said.


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