Start-up Commits to buy IBM's cabling business

Start-up Commits to buy IBM's cabling business

IBM has sold off the cabling business that was acquired when it bought Logical CSI in 2004, to a new start-up company that opens its doors today.

Auckland-based Commit Services has bought the division for an undisclosed sum and will take on all seven staff that made up the IBM cabling team, including those based in Wellington and Christchurch.

Commit Services will be led by director and shareholder Mark Giles, who until the beginning of this month was director of sales at Vodafone. His brother Warren Giles, who was national cabling manager at IBM, will be general manager of the company.

Mark Giles is positive about the viability of the new business.

“It will be a good business to work from. It has a good pipeline, is profitable and has good revenues and a good customer base.”

The team Commit Services inherited from IBM has a legacy of cabling intellect and skill stretching back many years, says Giles. “It is hard to get this level of skills and IP in multiple platforms in any business. It is a unique blend and a passionate bunch of people.”

While Warren Giles will be responsible for the daily operations of the company, Mark Giles will focus on launching the new business.

“My aim will be to help Warren and the team develop and unleash the business. We will consolidate first and then look to grow,” he says.

“There are lots of opportunities already presenting themselves to us, but we will make sure we get things moving strongly with the current customer set we are looking after.”

Commit Services will provide consulting, design and some implementation services, and will continue to work with around 60 certified installers across the country that IBM had a relationship with, says Giles.

However, as an IBM business partner, it will also work with the vendor to develop new links with companies beyond the traditional cabling market, he adds.

“Some of the people who have approached us already are further a field than the traditional cabling [industry].”

An IBM spokesperson says the company decided to sell the cabling division as it was not part of its core business.

Mark Giles has been replaced at Vodafone by Grant Hopkins.

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