IBM Corp duly announced the formation of its Internet software division, which comes under the software group, and appointed Irving Wladawsky-Berger to head this most critical new unit. Underlining the importance being attached to the unit, Wladawsky-Berger was formerly the general manager of the RS/6000 workstation and parallel computing business. He will report to John Thompson, senior vice-president and head of IBM’s software unit. IBM also announced that it is re-prioritising its 1996 research and development budget to reflect its overriding commitment to networking.