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Interview with Deborah Magid, Director Strategic Alliances, Software Group, and Venture Capital Group, IBM
By Alex Rahaman, ETRE Correspondent

Deborah represents IBM's software business to the venture capital community, building ecosystems for this $14bn global business stream by identifying new opportunities with venture backed portfolio companies. As a part of her role, she introduces venture firms and portfolio companies to IBM’s strategy and scouts for new business opportunities. Today she shares her past experiences and views on emerging technologies and markets with our ETRE correspondent, Alex Rahaman.

Q. Where did you start your career?
I started my career as a Cognitive Psychologist after obtaining a Masters degree in that discipline from the University of Connecticut. After a few years within Education, I moved to GE Information Services, and then AT&T specialising in Human Engineering, that is, Human Interface Design.

In January 1998, I joined Taligent, the JV between Apple and IBM, where I directed the Human experience team, before moving on to IBM's websphere division.

Q. How does your role fit into the wider IBM Organisation?
My role is a new role which has come into being following some internal discussions in 2000 which centred around IBM's relationship with the venture capital community. It was decided that each core business stream should create a role which is committed to developing these relationships.

The key aims are to increase the understanding in the VC community of what types of products and services might be strategically important to IBM and, as a result, facilitate the VC community’s discussions with the appropriate people. I have heard my role referred to as IBM's ‘Pathfinder’!  This is definitely the best job I’ve ever had.

Q. What are the three ‘hottest’ types of business for the Software Group?
Three interesting areas for us at the moment are:

  1. Web Services – The enablement of business applications, which ties in nicely with IBM's integration business.
  2. Grid Computing – This exciting area touches all parts of the IBM business, with both Hardware and Software divisions actively trying to define how best to commercialise this proposition.
  3. Business Integration – Any types of business which have applications, processes, or information which can ‘Cross Worlds’ and enhance software integration is interesting for us, particularly relating to our Websphere operation.

Q. How does the investment process work?
I have no budget or product responsibility. My role is purely to facilitate information, discussion and negotiation. All investments are made by the relevant business stream. They may ask me to search for interesting companies in a specific space or I may take an opportunistic view and bring them companies that may be of interest.

Q. What was your lucky Break?
I have had two lucky breaks. Once the phone rang and it was a friend asking me if I wanted to work for AT&T. I was working in education in the time and did not see how to take my skills into industry, particularly information technology.

The second break was a similar call in 1995 when someone asked me to work for Taligent, another cold call which led to a radical change in my geographic and professional life.

For more information on IBM, see: http://www.ibm.com

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