IBM Consolidates Top Management Jobs

IBM CEO Samuel J. Palmisano has concentrated power in the hands of fewer managers, including putting one person in charge of both software and hardware products, in an executive reshuffle announced in an internal memo on Monday.

Steven A. Mills will take on the role of senior vice president and group executive for systems and software. Mills has been with the company 36 years, and was previously senior vice president for just the software group. Reporting to him will be Rodney C. Adkins, senior vice president for the systems and technology group.

IBM faces a rival combining strengths in hardware and software, following Oracle's acquisition of Sun Microsystems.

On the services side, Michael E. Daniels will step up to the role of senior vice president and group executive for all of the IBM Global Services business, after running the outsourcing and integrated technology services side of it. Frank Kern, senior vice president responsible for the business services side of the division since January 2009, will report to him.

Virginia M. Rometty will add new functions to her current role of senior vice president of global sales and distribution, becoming senior vice president and group executive for sales, marketing and strategy. She will have two direct reports: Erich Clementi, vice president for strategy and general manager of enterprise initiatives, and Jon Iwata, senior vice president for marketing and communications.

Finally, CFO Mark Loughridge will become senior vice president for finance and enterprise transformation. He joined the company as a development engineer in 1977 before moving on to a number of financial management roles. Linda S. Sanford, senior vice president of enterprise on demand transformation and information technology, and Robert Zapfel, senior vice president of IBM Global Financing, will report to him.

An IBM representative confirmed the existence of the internal memo, but declined to comment on its contents.

Another IBM representative provided details of the new roles, adding that no one had left the company, and no one else had moved to a new role, as a result of the changes.

Peter Sayer covers open source software, European intellectual property legislation and general technology breaking news for IDG News Service. Send comments and news tips to Peter at peter_sayer@idg.com.

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