IBM To Further Utility Computing Plans With Think Dynamics Buy

Privately held Think Dynamics makes Think Control, an application suite that automatically reallocates computing resources,such as servers, middleware, applications, storage systems and network interfaces,to meet fluctuating business needs. "It's what we call policy-based dynamic provisioning, and what we mean by that is the ability for what's going on in the business environment to dictate what resources I need, where I need them, when I need them such that my IT infrastructure really is on-demand to the business," said Robert LeBlanc, general manager of IBM's Tivoli Software unit, during a conference call last week.

THOUGHTS BEHIND THE THINK DEAL: Acquisition backdrop

>> Supports utility computing vision laid out by IBM CEO Sam Palmisano last year.
>> Hewlett-Packard, Microsoft, Sun and others have also entered on-demand fray.

Using this type of automated technology, customers can cut costs and manage their IT infrastructures with a smaller staff, LeBlanc said.

Customers also can better utilize the employees they have, said Michael Roy, president of Blue World Information Technology, a solution provider in Vancouver, British Columbia.

"I don't know that human beings will ever be eliminated [from the network management process], but they will be redeployed on a higher level," Roy said.

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Think Dynamics' products will be integrated into IBM's software group and sold under the Tivoli brand name, LeBlanc said. But the technology also will be used in other areas, including IBM's server and outsourcing businesses, he said, adding that he expects the integration to go quickly.

IBM hasn't yet established a schedule for training solution providers on the new technology, as the company is about four months away from delivering product, said Mike Twomey, vice president of channel and business development at IBM Tivoli. All of Think Dynamics' 36 employees are expected to transfer to IBM except CEO Alan McMillan, who said during the conference call that he plans to stay on for a few months to support the transition.

IBM did not disclose the financial terms of the deal.