Palmisano to head IBM server group

IBM said that Sam Palmisano, the head of its

computer services--would replace the retiring head of its computer

hardware business. IBM said Robert Stephenson, 61, a 38-year IBM veteran

who also once led the company's personal computer business, will retire at

the end of 1999.

The company said that on October 1, the 48-year-old Palmisano will take

over the IBM Server Group, a $10.5 billion annual business that builds the

powerful mainframes, minicomputers, workstations, and personal-computer

servers.

Doug Elix, now the general manager of IBM Global Services Americas,

will replace Palmisano as group executive of IBM Global Services, the

$28.9 billion business unit that is the provider of computer services and

technical consulting. He will also take the job on October 1.

Besides taking charge of Global Services, Elix, an Australian, will

join the Corporate Executive Committee, IBM's top management team, and the

group formally charged with advising Gerstner on strategy. Elix joined IBM

in 1969, and has served in a variety of roles in Australia, the

Asia/Pacific region, and the Americas. In taking charge of IBM Global

Services, he will head an organization with 130,000 employees, double the

number he led as head of IBM's consulting business in the Americas.