IBM buyout spikes stock up 25%
Some potential IBM reasons for buyout:
Older article:
In 1998, IBM established a division that provides wireless products and services similar to those Aether provides to its private-sector and government customers. IBM dubbed the wireless work it performs, “pervasive e-business,” in reference to the extension of the Internet through wireless hardware and software into all aspects of business and personal activity, said Jon Prial, IBM Pervasive Computing Division’s director of marketing and strategy.
“IBM Global Services has a tremendous investment and thousands of resources dedicated to this pervasive space,” he said.
IBM provides solutions to more than 400 government customers in areas such as public safety, health and human services and criminal justice, said Prial. Most of these are still in pilot projects.
In 1999, the division had total sales revenue from both the public and private sector of more than $250 million.
For now, though, Aether appears to be in the lead, primarily because of the acquisition of Cerulean.
“We think they’re dominant,” said Christopher Giordano, an equity research analyst with investment banking firm Merrill Lynch and Co. Inc. of New York. “No competitor has the breadth across as many vertical markets or as fully funded of a business model [as Aether].”
Giordano believes that in the future Aether will make even more acquisitions than it has in the past year.
Davidson would agree. “If there is a good vertical market that we want to target then we will find a leader in that space and either partner with it or acquire it, whichever makes the most sense,” he said.
Whether Aether succeeds in the new markets it is entering depends partly on the extent to which wireless data is being used by customers in these different sectors, said Giordano.
washingtontechnology.com
Another;
Following the recent release of Blackberry Enterprise Edition™ for Lotus® Notes® and Domino™ by Research In Motion Limited, two key players in the industry, Aether Systems and IBM, have entered into agreements with RIM for its latest offering.
Aether Systems
To reach out to a greater pool of enterprise customers, Aether Systems will make Blackberry™ by Aether available to Lotus Notes and Domino users, later this quarter.
Blackberry by Aether will provide the enterprise customer with an integrated package consisting of the following:
E-mail/organizer software
PC cradle and desktop software
Enterprise service software
End-to-end security
Flat-rate airtime on nationwide wireless networks
Customer Service
IBM
IBM intends to add the Blackberry e-mail product to its portfolio of wireless products. The company will create a team that will facilitate the integration of Blackberry handheld devices with enterprise e-mail and intranet back-end systems. In addition, the IBM will provide consulting and design services.
The Wall Street Journal reported that IBM plans to equip 6,500 of its 15,000 field support representatives with Blackberry devices. They will have access to a host of applications, such as management, parts ordering, and status checks.
mobileinfo.com
2000 article on AETH
In fact, things are going so well for Aether's software and services sales that it's no longer considered a small-time player. "People used to compare us to other wireless startups, but our real competition is people like IBM (IBM) and Hewlett-Packard (HWP)," Davis says. "And we have the upper hand against companies like that because they are just starting their wireless-services operations."
That's not to say Aether is about to unseat IBM, a company with $30 billion in yearly sales of professional services. By comparison, Aether had revenues of only $32 million the first three quarters of this year. While that's over 500% more than the company made in 1999, it's still far from being considered a services powerhouse.
www.businessweek.com/ebiz/0012/es1228.htm+ibm+aether&hl=en&ie=UTF8
It makes sense for the merger to occur. Monster volume and it can't be that high without some truth to it.
Jack |
