IBM Extends Network Management Reach With Intelliden Deal

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Financial terms of the acquisition of the privately held Intelliden were not disclosed.

Intelliden's network management software is used to automate the configuration of manually managed network devices such as hubs, routers and switches. Such capabilities are needed to prevent network failures -- IBM quoted analyst estimates that 60 percent of all network outages are caused by manual configuration errors.

The ability to automate network services is also becoming more important for managing networks that incorporate virtualized systems and cloud-based applications.

IBM said Intelliden's technology would be integrated into its Tivoli systems and network management software, part of the IBM Software Group that has made more than 50 acquisitions since 2003. Because the Intelliden tools can be used to deliver asset management services and manage service-level agreements, IBM said the acquisition would strengthen its service management portfolio.

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"We see great synergies between IBM and Intelliden," said Dennis Kenelly, IBM vice president of development, in a teleconference. The acquisition adds to IBM's vision of how data centers and network operations centers need to be managed, he said, and how network management policies need to be complied with.

Intelliden has operations in Colorado Springs, Colo., and Belfast, Ireland, in addition to its California headquarters. The company's customers include Cbeyond, Scotia Capital, Telecom Italia and Telus.

Intelliden CEO Alan Black, speaking in the teleconference, said IBM and Intelliden have a number of joint customers, including Telus, and that was a catalyst for the acquisition.