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IBM Inks Isogon Deal

IBM Corp. (NYSE: IBM) today acquired software specialist Isogon Corp. for an undisclosed fee in an attempt to bolster its mainframe software business (see IBM Acquires Isogon).

IBM and Isogon have been partners since 1997, and IBM has resold Isogon's products since last year. IBM spokesman Jeffrey Tieszen told NDCF that most of Isogons 90 employees, based in New York, are expected to come over to IBM's Tivoli software division, but, “We’re still evaluating that,” he adds. Presently, the Tivoli headquarters are in Austin, Texas.

IBM is on something of an M&A tear when it comes to its Tivoli mainframe business. Last year, IBM snapped up two other players in this space, Candle Corp. and Cyanea, adding monitoring and management of a range of mainframe applications and functions (see IBM Holds a Candle and IBM to Acquire Cyanea).

This deal, like those, proves that IBM still has high hopes for its mainframe business. On a number of occasions over the last few years, mainframe technology has been written off as outdated (see Mainframe Skills Shortage Looms). However, IBM recently unveiled a new suite of Tivoli software products to automate systems management and monitoring across its zSeries family (see IBM Automates Mainframe Management).

Isogon extends the mainframe story. The vendor sells products that track inventory and measure software usage running on high-end boxes like the zSeries. According to IBM, this will complement its existing Tivoli License Manager software.

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