IBM merges chip, server groups

IBM merges chip, server groups

IBM's server and semiconductor groups are joining forces in hopes that by working closer together the two will help each other improve their product lines, according to an IBM spokesman.

The new IBM Technology and Systems Group is a combination of the Technology Group headed by John Kelly, senior vice-president and group executive, and the Systems Group, headed by William Zeitler, also a senior vice-president and group executive.

The two men will equally share responsibility for the new division, overseeing their respective areas, a company spokesperson, Chris Andrews, said.

Kelly's group designs, manufactures and sells processors to both external clients and IBM's server group, while Zeitler's organisation designs and develops IBM's wide range of server technology from mainframes to blade servers.

No layoffs would occur as a result of the merger, Andrews said.

"It just ends up being the realignment of organisational charts and internal reporting," he said.

"The real aim for this is that the two businesses are more closely aligned with each other, which provides a greater efficiency both internally and externally."

The Systems Group is coming off a good quarter, in which it had strong sales of servers with Intel processors. The group also had strong overall growth.

The two groups had always collaborated on new and existing products, but the new organizational structure would help formalise that relationship, Andrews said.

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