Exclusive: IBM Reorganizes Software Group

IBM senior vice president Steve Mills issued an internal memo announcing the split of the group into separate solutions and middleware units and a shake up in the executive ranks.
IBM's Software Group has reorganized its vast portfolio and more than 50,000 employees into two units: Software Solutions Group and Software Middleware Group. In the process it has promoted two executives and reassigned long-time executive Ambuj Goyal.

The Software Goup realignment was outlined in memo sent out this morning by senior vice president and group executive Steve Mills. A copy of the memo was obtained by Intelligent Enterprise. IBM declined to comment on the moves, but a source inside the company confirmed the memo's authenticity.

Ambuj Goyal most recently served as general manager, business analytics and process optimization. He was a champion and leading architect of a bevy of acquisitions of information management, business intelligence and analytics vendors, including Ascential, Cognos and, most recently, SPSS. Goyal has been named general manager, development and manufacturing for IBM's Systems & Technology Group (STG) and will report to Rod Adkins, STG's senior vice president.

"Ambuj has been responsible for helping lead the transformation of Information Management, which has evolved from providing database software solutions to a significantly higher-value play that enables clients to use their information as a strategic asset to transform their own businesses," Mills' wrote in the memo. "I have no doubt that Ambuj will bring a great deal of value to STG with his vast experience and skill."

The new Solutions and Middleware units will be headed by Mike Rhodin and Robert LeBlanc, respectively, both of whom have been promoted to senior vice president. Rhodin is a former Lotus executive and most recently led an integrated operating team. Reporting to him will be Rob Ashe, general manager, business analytics (which includes Cognos and SPSS); Alistair Rennie, general manager, Lotus; and a yet-to-be-named general manager for Industry Solutions, which includes industry frameworks and enterprise content management.

LeBlanc formerly led IBM's worldwide software sales and marketing team. As head of the Software Middleware Group, LeBlanc's reports will be Craig Hayman, general manager, application and integration middleware; Arvind Krishna, general manager, information management; Danny Sabbah, general manager, rational; and Al Zollar, general manager, Tivoli. Bob Picciano, most recently general manager at Lotus, will take over at least part of LeBlanc's role as general manager, Worldwide Software Sales.

Mills' memo emphasized that IBM is seeking high-value and high-growth opportunities and aims to support the company's Smarter Planet agenda.

"These changes represent a logical step in the evolution in our long-term software strategy," Mills wrote. "Our strategy of developing and acquiring these capabilities to round out our portfolio has allowed us to outpace our competitors in addressing our clients' most pressing issues in their industries."