Web workflow system

update A correction was made to this story. Read below for details. IBM has agreed to acquire content-management software maker FileNet for about $1.6 billion in cash, the companies said Thursday. FileNet is a publicly traded company based in Costa Mesa, Calif., with an annual revenue last year of nearly $422 million. The 24-year-old company is one of the largest specialists in content and document management software sold to large corporations. IBM said that it will integrate FileNet's products with its own content-management software developed in its Information Management division, which is led by general manager Ambuj Goyal. In addition, IBM said it will seek to combine FileNet's content-management software with its business process management tools for automating complex business workflows. ***

Microsoft on Tuesday said it will fill out its management software line with a product to help IT pros troubleshoot problems and release a revamped Exchange management console next year. A product under development, code-named Service Desk, will be used as a foundation for a set of management-related tasks, such as keeping track of a company's hardware and software or updating software configurations from a central point. Service Desk will be available at the end of 2007, company executives said at a management software conference. Service Desk will include a "workflow engine" for automating tasks, such as handling a help desk ticket, and will be anchored by a database for storing configuration information on networked devices and software, the company said. Microsoft executives also discussed delivery plans for PowerShell, formerly code-named Monad, which is software for writing administration scripts. ***

LOS ANGELES--Microsoft plans to muscle into two markets next year, work flow and enterprise content management, using its time-tested techniques of exploiting its desktop dominance and appealing to developers. On Wednesday, at its Professional Developers Conference here, the software giant announced two initiatives meant to grab more dollars spent on content management and work flow applications. The company announced ***