New Role For IBM's Kelly

AUSTIN, Texas — John E. Kelly III, group executive at IBM Corp.'s beleaguered microelectronics unit since 1999, has taken a newly created job within IBM that will focus on intellectual property issues related to Linux and other forms of computer networking software.

Kelly's reassignment comes after IBM merged its microelectronics and server operations into the systems and technology group early this year. Kelly and Bill Zeitler, another IBM senior vice president, had shared the management of that group until now. Zeitler will continue as the group executive, an IBM spokesman said, adding that IBM does not plan to name a replacement for Kelly.

Michael Cadigan, a 25-year veteran of the technology operation, was named general manager of the OEM Microelectronics operation, a new business group which deals with external foundry customers, a spokesman said.

The spokesman declined to comment on any other management changes within the microelectronics operation, saying that IBM would outline any changes at a later date.

Bernie Meyerson remains chief technologist within the group, he added.