Motorola Latest To Back IBM Home Networking Spin-Off - InformationWeek

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Motorola Latest To Back IBM Home Networking Spin-Off

IBM spin-off Home Director Inc. has closed a $55 million initial round of financing that shows just how seriously major equipment makers are taking the market for home networking. On Tuesday, the company said Motorola Inc. is the final first-round investor, joining Cisco Systems and, naturally, IBM in backing a company that sells home networking systems to builders for new home installations.

Home Director exec Andrew Hayden says the company's systems provide an entree for Cisco, Motorola, IBM, and other equipment makers to sell home networking products. Home Director's system is essentially a box that serves as a network administration center where homeowners can manage distribution of their phone and data systems themselves. Hayden says the financial commitments of the three corporate investors strengthens Home Director's ability to fuel the home networking market.

The company also has relationships with three of the largest telecom providers--SBC Communications, BellSouth, and Verizon. Each resells Home Director's equipment, with Home Director also bundling SBC's services with its systems in some markets.

Also on Tuesday, Home Director revealed its intention to acquire Digital Interiors Inc., a home network systems integrator, for an undisclosed price.

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