Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IBM Furthers Convergence Strategy With MRO Buy

IBM's Software Group was one of the bright spots on its recent annual earnings call. And if you look closely at what the company is trying to do to leverage its successes there, you'll find a strategy bent on connecting the dots between IBM's myriad software products and its vast consulting and services offerings.

A key element of this has been growth through acquisition, namely buying up other software vendors that enable IBM to gain new technologies or augment its existing platforms. The company then integrates the third-party software into a solution to sell through IBM Global Services and, presumably, its army of business partners.

This week saw another step in that direction when IBM announced its intent to acquire MRO Software, an asset-management software specialist based in Bedford, Mass., for $740 million. By bringing MRO into the fold, IBM will be gaining technology that complements its Tivoli management software portfolio and leads a trend toward the convergence of tools that manage IT assets and those, like MRO's, that manage industrial assets, such as a fleet of trucks.

"Clients want a consistent way to manage all of their industrial assets, from procurement to retirement, along with their IT assets," said Al Zollar, general manager of IBM's Tivoli division, in announcing the MRO deal today. "Clients have a common goal of a single, consolidated architecture."

Fact is, with so many core industrial assets, from trucks to planes to parts, now sporting embedded chips, RFID tags or other technology, this kind of convergence becomes possible, Zollar explained.

  • 1