I.B.M. announced yesterday that it would pay $865 million for Micromuse Inc., whose software is used to manage Internet-based computing networks that handle voice, video and data.

The acquisition is the latest indication that the many software markets continue to consolidate, including the data center management market, where Micromuse occupies a niche. Earlier this year, for example, Computer Associates bought Concord Communications for $350 million, and EMC completed its $260 million purchase of Smarts.

Micromuse, based in San Francisco, will become part of I.B.M.'s Tivoli unit, a big supplier of data center software. That market is growing faster than the software business as a whole - Tivoli's revenue has increased more than 10 percent this year - as companies seek to cut costs by using software to automate the maintenance of corporate data centers.

The technology standards of the Internet are the foundation for these multipurpose networks. "The Internet protocols have clearly become dominant not just on the consumer side, but on the business side as well," Steven A. Mills, senior vice president in charge of I.B.M.'s software business, said. "We needed more strength in this kind of network management software, and Micromuse fills that technology gap."

Prashanth RaiTag(s):IBM, IT+Services, M&A