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IBM Buys Candle: Page 3 of 4

"IBM is very focused on executing on their $10 billion vision for their broad On-Demand vision, and we can definitely expect that this won't be their last acquisition in this space," Ronald Schmelzer, analyst for ZapThink LLC, said.

IBM's software group plans to complete its acquisition this quarter of another longtime partner, Trigo. Announced last month, the deal is expected to strengthen IBM's software for gathering and managing product information across retail supply chains.

Privately held Trigo, based in Brisbane, Calif., sells software that can draw product information, such as price, location and description, from multiple information technology systems and store it in a central repository. From there, the data can be shared with a company's customers, partners or suppliers through a portal. The software also can deliver product data to a point of sale device for price checking, for example, or a customer call center.

Trigo's retail customers include Royal Philips Electronics, Staples, Sony and Unilever.

In December, IBM bought privately held Green Pastures Software, a Corvallis, Ore.-based, content management company that eases the creation of financial documents and annual reports, product documentation and pharmaceutical submissions. It was the fourth acquisition by IBM Software's Data Management group in less than two years.