Big Blue will use Segue products at all its hosting facilities to remotely track its clients' Web site performance as well as analyze network, server and database functions.

"This agreement provides enterprises with seamless world-class solutions, from companies with best-in-class specialization, to help them ensure the reliability of their applications," said Steve Butler, Segue's president and CEO.

It also expands Segue's relationship with the IBM, the Armonk, N.Y., information technology giant with a 2,000-consultant services arm.

That could boost sales for Lexington, Mass.-based Segue, which has heretofore targeted small and mid-sized businesses through its direct sales force.

"This announcement is indicative of the need for professional service providers to be able to offer a scalable, reliable, available, and portable platform for their clients," said Theresa Lanowitz, a Gartner analyst. "Organizations need to focus on their core competencies and utilize service providers to virtually augment their teams."

The deal includes two offerings: SilkVision, a Web-based infrastructure monitoring application that simulates user behavior; and SilkPerformer V, a new product that verifies the content of business applications and site scalability.

At midday, shares of SEGU were unchanged at 2.6. In the last 52 weeks, the issue has ranged from 0.8 to 5.75.

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