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IBM acquires Whistle Comm.
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June 9, 1999: 2:27 p.m. ET
Acquisition of 'thin server' company highlights IBM's focus on e-business
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NEW YORK (CNNfn) - Following its strategy to focus on e-business for small businesses, IBM Corp. announced Wednesday it will acquire Whistle Communications Inc., a private company that provides Internet capabilities for small businesses through a single Internet connection, known as a "thin server."
Terms of the deal were not disclosed.
Whistle is a small California-based company, whose primary product, the InterJet, can provide a company of five to 100 people with e-mail, Internet access, Web publishing and firewall security.
The move strengthens IBM's (IBM) position in a key growth market, according to David Thomas, IBM senior vice president and personal services group executive.
"We think (acquiring Whistle) is a very important acceleration of our focus of bringing e-business to small businesses around the world," Thomas said. Thomas added that the benefit for both Whistle and IBM is the ability to couple a strong product with Big Blue's services.
Whistle President and CEO John Hamm said the target market for the "thin server" are companies that can't afford the $15,000 cost of putting in their own Internet system, plus the added cost of a system administrator. The InterJet retails for just under $2,000.
The "thin server" company already has 160 Internet service provider partners across the United States that distribute the InterJet, ranging from national providers like MCI WorldCom (WCOM)-owned UUNet to regional providers like the Pacific Bell unit of SBC Communications Inc. (SBC)
Whistle has 75 employees, who will be kept on by IBM.
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