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April 5, 2005

IBM Australia launches new mid-market services arm

IBM Global Services has unveiled a new IT services arm called Cerulean which it hopes will increase its presence in the Australian mid-market sector.

By CBR Staff Writer

Cerulean, a name derived from the Latin for sky, is the new moniker for the Logicalis network services business that IBM acquired for $66m in March 2004. It is one of the first times that IBM has acquired a local services provider and kept it as a separate brand in that country.

Cerulean has more than 200 employees providing infrastructure and network design, deployment and integration services to medium-sized companies in Australia and New Zealand. Research company IDC predicts that spending on network consulting and integration in Australia will reach AUD 510m ($392m) in 2005.

IBM said that mid-market companies feel more comfortable dealing with smaller services providers. IBM has been criticized in the past by smaller organizations who feel that its top support employees tend to be focused on the company’s large accounts.

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