IBM Forms Unit to Sell Network Computers

Boosting its commitment to the so-called network computers, International Business Machines Corp. said it had created a new division to sell machines that are dependent on corporate computer networks for performing functions. The unit will coordinate all IBM’s efforts to develop, make and promote these computing devices, which are expected to go on sale early next year at less than $700 each, not including a monitor. While Armonk, N.Y.-based IBM introduced a version of the new product in September, its reorganization signaled the effort has top priority at the world’s largest computer company. The network computers are a centerpiece of IBM’s new strategy to reap strong profit from the combination of Internet and traditional mainframe computer technologies.