IBM and eBay form web alliance

Web auction site eBay has signed up for IBM's WebSphere services as part of a software, sales and marketing alliance.

The two companies said the partnership will see IBM increase the number of computers and servers sold either through fixed prices or at auction on eBay, following the success of an eight-month pilot project treating the auction site as a new channel for consumers and small to medium sized enterprises.

Big Blue said that seven out of 10 of the firm's eBay customers hadn't bought from IBM before.

The two will also run jointly branded advertising campaigns.

eBay is upgrading its technology infrastructure to accommodate the site's projected growth over the next several years. It already offers more than six million products at any given time.

Meg Whitman, president and chief executive at the auction site, said: "eBay and IBM will help each other achieve even greater success. IBM's leadership in infrastructure technologies, combined with its global marketing muscle, will play a central role in furthering our growth.

"At the same time, our marketplace will provide a vibrant channel for IBM to reach new customers."