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April 29, 1997updated 05 Sep 2016 1:04pm


By CBR Staff Writer

IBM Corp flatly denies it is closing its Internet software division, set up less than two years ago under the leadership of Lou Gerstner’s lieutentant Irving Wladesky-Berger (CI No 2,806), although it has transferred 100 of the division’s 500 software developers to the company’s main software unit. IBM told Computergram, speculation that it was slowly dismantling the unit was completely untrue. The developers transferred were working on base Web server technology, including Java, which the company says has become so integral to the rest of its business that it is more efficient for the team to continue their development within the main software division. IBM says cost cutting is absolutely not an issue, and that the Internet software division, whose original brief was to incubate new products and technologies for the rest of the company, continues to thrive.

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