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IBM and Lotus to Team Up on Office Software

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From Associated Press

IBM will combine its computer marketing muscle with the technological innovation of Lotus Development Corp. in an office-software joint venture that some industry analysts describe as a “dynamic duo” combination.

The deal announced Monday marks an attempt by International Business Machines Corp. to bolster its beleaguered OfficeVision software package. Lotus will gain more exposure for its Notes program, a highly touted product that allows groups of people to share information through computer networks.

The agreement marks another step by IBM, the world’s largest computer maker, to link up with other companies. Last week, the Armonk, N.Y., company announced a deal for Wang Laboratories Inc. to sell IBM computers. In addition, IBM reportedly has been discussing a technology swap with Apple Computer Inc.

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On Monday, Borland International Inc. said it too has forged an alliance with IBM to develop and sell software to work with a new version of IBM’s OS-2 operating system.

“We’re now in an environment where one particular vendor usually cannot meet every single requirement that customers may have,” said Tim Breuer, an IBM spokesman.

Under the newest agreement, IBM’s sales force will sell Notes and Lotus’ electronic mail product--cc:Mail--to corporate customers.

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Jim Manzi, chief executive of Cambridge-based Lotus, said the deal would blend his company’s technology with “IBM’s unequaled understanding of corporate computing.”

Richard Anderson, IBM’s office systems director, said his company “will be able provide more complete office solutions.”

Anderson said IBM is committed to bringing customers “the best office automation solutions on the market today.”

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Analysts said both companies would benefit from the arrangement.

Steven Frankel of Adams, Harkness & Hill Inc. in Boston said IBM’s OfficeVision line has been “a major black mark on their report card. This will remove it.”

IBM introduced OfficeVision in 1989 as a means to tie together different-sized computers. Analysts say the product line has been hurt by delays and technical problems.

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