IBM gets personal to combat sluggish PC sales

IBM has set up a business group incorporating its PC Company and its consumer and network computer divisions in the wake of flat hardware sales, particularly of consumer PCs. The three divisions will come under the umbrella title of the personal systems group. The rationalisation comes at the same time as sales for Q2, ended 30 June, moved up 0.4 per cent to $8.6 billion. In a letter to employees, IBM CEO Lou Gerstner said the division was created because ?the distinctions between personal computer and network computer, consumer and commercial products are blurring from a technology point of view and most important, a competitive point of view?. IBM is also reshuffling some of its VPs from 1 August. Sam Palmisano, general manager of the IBM PC Co in the US, will head the personal systems group as senior VP and group executive. Nick Donofrio has become senior VP technology and manufacturing ? Bob Stephenson will take over Donofrio?s portfolio as the head of the server group. Jim Vanderslice, general manager of the storage systems division, has become a VP and group executive.