International Business Machines (IBM) (NYSE: IBM) is an American multinational technology and consulting firm headquartered in Armonk, New York. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas ranging from mainframe computers to nanotechnology.[2]
The company was founded in 1911 as the Computing Tabulating Recording Corporation through a merger of four companies: the Tabulating Machine Company, the International Time Recording Company, the Computing Scale Corporation, and the Bundy Manufacturing Company.[3][4] CTR adopted the name International Business Machines in 1924, using a name previously designated to CTR's subsidiary in Canada and later South America. Its distinctive culture and product branding has given it the nickname Big Blue.
In 2011, Fortune ranked IBM the 18th largest firm in the U.S.,[5] as well as the 7th most profitable.[6] Globally, the company was ranked the 33rd largest firm by Forbes for 2010.[7] Other rankings for 2010 include #1 company for leaders (Fortune), #2 best global brand (Interbrand), #3 green company (Newsweek), #15 most admired company (Fortune), and #18 most innovative company (Fast Company).[8] IBM employs almost 400,000 employees (sometimes referred to as "IBMers") in over 200 countries, with occupations including scientists, engineers, consultants, and sales professionals.[9]
IBM holds more patents than any other U.S.-based technology company and has nine research laboratories worldwide.[10] Its employees have garnered five Nobel Prizes, four Turing Awards, nine National Medals of Technology, and five National Medals of Science.[11] The company has undergone several organizational changes since its inception, acquiring companies like SPSS (2009) and PwC consulting (2002) and spinning off companies like Lexmark (1991).
International Business Machines Corporation (IBM), incorporated on June 16, 1911, is an information technology (IT) company. The Company operates under five segments: Global Technology Services (GTS), Global Business Services (GBS), Software, Systems and Technology, and Global Financing. GTS primarily provides IT infrastructure services and business process services. GBS primarily provides professional services and application management services. IBM’s Software segment consists primarily of middleware and operating systems software. IBM provides clients with business solutions requiring advanced computing power and storage capabilities. Global Financing invests in financing assets, leverages with debt and manages the associated risks. During the year ended December 31, 2010, IBM acquired Intelliden Inc., National Interest Security Company, LLC, Cast Iron Systems, BigFix, Inc., Datacap Inc., Clarity Systems, BLADE Network Technologies, Netezza Corporation, Lombardi, Unica Corporation, PSS Systems and OpenPages. In April 2011, the Company acquired TRIRIGA, Inc.
Global Technology Services
GTS primarily provides IT infrastructure services and business process services. Its services include Strategic Outsourcing Services, Global Process Services, Integrated Technology Services, Maintenance and GTS Services Delivery. Its Strategic outsourcing Services include IT outsourcing services. IBM integrates its service management, technology and industry applications with new technologies, such as cloud computing and virtualization. Global Process Services ranges from standardized processing platforms and business process outsourcing, through transformational offerings, that deliver business results to clients through the change and/or operation of the client's business processes, applications and infrastructure, formerly business transformation outsourcing.
IBM's GTS Services Delivery is responsible for the worldwide delivery of IBM's technology- and process-based services. In support of technology-based services, GTS Services Delivery manages the privately owned IT infrastructure, supporting approximately 430 data centers. GTS Services Delivery also provides business process outsourcing and business process services.
Global Business Services
GBS primarily provides professional services and application management services. IBM’s services in this segment include Consulting and Systems Integration, and Application Management Services. Its application development, management, maintenance and support services are provided for packaged software, as well as custom and legacy applications. The Company delivers to clients, through consulting services, application services, enterprise applications (systems applications and products (SAP) and Oracle) and business analytics and optimization.
Software
IBM’s Software segment consists primarily of middleware and operating systems software. Middleware software enables clients to integrate systems, processes and applications across a standard software platform. Its software includes WebSphere Software, Information Management Software, Tivoli Software, Lotus Software, Rational Software, Business Analytics and Operating Systems. Information Management Software solutions include advanced database management, enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management and predictive analytics. Tivoli Software solutions include identity management, data security, storage management, automation and provisioning of the datacenter.
Lotus Software is a communication, messaging and social networking software. Rational Software supports software development for both IT and embedded system solutions with a suite of Application Lifecycle Management products. Rational’s technology platform includes Jazz. Business Analytics solutions include Cognos' business intelligence software, which provides tools that range from querying to forecasting, as well as statistical product and service solutions (SPSS) predictive analytics software. IBM’s Operating Systems software manages the fundamental processes that make computers run. Clients can also purchase ongoing subscription, which includes product upgrades and technical support.
Systems and Technology
The Company provides clients with business solutions requiring advanced computing power and storage capabilities. Approximately half of Systems and Technology's server and storage sales transactions are through IBM’s business partners; with the balance direct to clients. In addition, Systems and Technology provides semiconductor technology, products and packaging solutions to clients. Systems and Technology include systems, storage, retail store solutions and microelectronics.
A range of general purpose and integrated systems are designed and optimized for business, public and scientific computing needs. Its integrated systems, which include System z, Power Systems and System x, are the core technology in data centers that provide required infrastructure for business and institutions. Also, these systems form the foundation for IBM's integrated offerings, such as IBM Smart Business Storage Cloud, IBM Smart Analytics Cloud, IBM Smart Analytics System and IBM CloudBurst. IBM servers use both IBM and non-IBM microprocessor technology and operating systems.
IBM provides data storage products and solutions that allow clients to retain and manage volumes of digital information. The portfolio consists of a range of disk and tape storage systems and software, including the ultra-scalable disk storage system XIV. Its Retail Store Solutions is point-of-sale retail systems (network connected cash registers), as well as solutions that connect them to other store systems.
Global Financing
Global Financing invests in financing assets, leverages with debt and manages the associated risks. Global Financing consists of Client Financing, Commercial Financing, and Remanufacturing and Remarketing. Client financing provides lease and loan financing to end users and internal clients. Commercial Financing provides short-term inventory and accounts receivable financing to dealers and remarketers of IT products. Externally remarketed equipment revenue represents sales or leases to clients and resellers. Internally remarketed equipment revenue primarily represents used equipment that is sold or leased internally to the Systems and Technology and Global Services segments. The Systems and Technology segment may also sell the equipment that it purchases from Global Financing to external clients.
The Company competes with Accenture, Computer Sciences Corporation, Fujitsu, Hewlett-Packard Company (HP), HCL, Infosys, Tata Consulting Services, Cognizant and Wipro Technologies, Deloitte Consulting, CA, Inc., Microsoft Corporation, Oracle Corporation (Oracle), Dell, Inc. (Dell), EMC Corporation, HP, Cisco Systems, Inc. and General Electric Company.
In 1937, the U.S. Government deployed IBM tabulating equipment to maintain the employment records for 26 million people pursuant to the Social Security Act.[19] In 1938, the IBM World Headquarters Building, located at 590 Madison Avenue in New York, New York, was dedicated.
In 1952, Thomas J. Watson, Jr., became president of the company, ending almost 40 years of leadership by his father. In 1956, Arthur L. Samuel of IBM's Poughkeepsie, New York, laboratory programs an IBM 704 to play checkers using a method in which the machine can "learn" from its own experience. It is believed to be the first "self-learning" program, a demonstration of the concept of artificial intelligence. In 1957, IBM developed the FORTRAN (FORmula TRANslation) scientific programming language. In 1961, Thomas J. Watson, Jr., was elected chairman of the board and Albert L. Williams became president of the company. IBM develops the SABRE (Semi-Automatic Business-Related Environment) reservation system for American Airlines.
In 1963, IBM employees and computers helped NASA track the orbital flight of the Mercury astronauts, and a year later, the company moved its corporate headquarters from New York City to Armonk, New York. The latter half of that decade saw IBM continue its support of space exploration, with IBM participating in the 1965 Gemini flights, the 1966 Saturn flights, and the 1969 mission to land a man on the moon.
On April 7, 1964 IBM announced the first computer system family, the IBM System/360. Sold between 1964 and 1978, it was the first family of computers designed to cover the complete range of applications, from small to large, both commercial and scientific. For the first time, companies could upgrade their computing capabilities with a new model without rewriting their applications.
The company has nine research labs worldwide—Almaden, Austin, Brazil, China, Haifa, India , Tokyo, Watson (New York), and Zurich—with Watson (dedicated in 1961) serving as headquarters for the research division and the site of its annual meeting. Other campus installations include towers in Montreal, Paris, and Atlanta; software labs in Raleigh-Durham, Rome and Toronto; buildings in Chicago, Johannesburg, and Seattle; and facilities in Hakozaki and Yamato. The company also operates the IBM Scientific Center, the Hursley House, the Canada Head Office Building, IBM Rochester, and the Somers Office Complex. The company's contributions to architecture and design, including Chicago's 330 North Wabash building designed by Ludwig Mies van der Rohe, were recognized with the 1990 Honor Award from the National Building Museum.[26]
IBM's Board of Directors, with 14 members, is responsible for the overall management of the company. With Cathie Black's resignation from the board in November 2010, the remaining 13 members (along with their affiliation and year of joining the board) are as follows: Alain J. P. Belda '08 (Alcoa), William R. Brody '07 (Salk Institute / Johns Hopkins University), Kenneth Chenault '98 (American Express), Michael L. Eskew '05 (UPS), Shirley Ann Jackson '05 (Rensselaer Polytechnic Institute), Andrew N. Liveris '10 (Dow Chemical), W. James McNerney, Jr. '09 (Boeing), James W. Owens '06 (Caterpillar), Samuel J. Palmisano '00 (IBM), Joan Spero '04 (Doris Duke Charitable Foundation), Sidney Taurel '01 (Eli Lilly), and Lorenzo Zambrano '03 (Cemex).
OVERALL
Beta: 0.73
Market Cap (Mil.): $204,559.59
Shares Outstanding (Mil.): 1,211.20
Annual Dividend: 3.00
Yield (%): 1.78
FINANCIALS
IBM.N Industry Sector
P/E (TTM): 14.17 20.77 19.06
EPS (TTM): 15.92 -- --
ROI: 21.11 21.48 16.13
ROE: 67.53 23.51 17.80
Name Age Since Current Position
Palmisano, Samuel 59 2003 Chairman of the Board, President, Chief Executive Officer
Weber, Robert 60 2006 Senior Vice President - Legal and Regulatory Affairs, General Counsel
Iwata, Jon 48 2008 Senior Vice President - Marketing and Communications
MacDonald, J. Randall 62 2000 Senior Vice President - Human Resources
Loughridge, Mark 57 2010 Senior Vice President and Chief Financial Officer - Finance and Enterprise Transformation
Kelly, John 57 2007 Senior Vice President - Research and Intellectual Property
Mills, Steven 59 2010 Senior Vice President and Group Executive - Software and Systems
Sanford, Linda 58 2000 Senior Vice President - Enterprise Transformation
Shaughnessy, Timothy 53 2010 Senior Vice President - GTS Services Delivery
Daniels, Michael 56 2010 Senior Vice President and Group Executive - Services
Rometty, Virginia 53 2010 Senior Vice President and Group Executive - Sales, Marketing and Strategy
Adkins, Rodney 52 2007 Senior Vice President - Systems and Technology
Kern, R. Frankin 57 2009 Senior Vice President - Global Business Services
Arnold, Colleen 53 2010 Senior Vice President - Application Management Services
LeBlanc, Robert 52 2010 Senior Vice President - Middleware Software
Rhodin, Michael 50 2010 Senior Vice President - Software Solutions
Clementi, Erich 52 2010 Senior Vice President - Global Technology Services
Kavanaugh, James 44 2008 Vice President, Controller
Chenault, Kenneth 59 1998 Director
Taurel, Sidney 62 2001 Independent Director
Zambrano Trevino, Lorenzo 67 2003 Independent Director
Spero, Joan 67 2004 Independent Director
Eskew, Michael 61 2005 Independent Director
Jackson, Shirley 64 2005 Independent Director
Owens, James 65 2006 Independent Director
Brody, William 67 2007 Independent Director
Belda, Alain 67 2008 Independent Director
McNerney, W. James 61 2009 Independent Director
Liveris, Andrew 56 2010 Independent Director
COMPANY ADDRESS
International Business Machines Corp
One New Orchard Road
Armonk NY 10504
The company was founded in 1911 as the Computing Tabulating Recording Corporation through a merger of four companies: the Tabulating Machine Company, the International Time Recording Company, the Computing Scale Corporation, and the Bundy Manufacturing Company.[3][4] CTR adopted the name International Business Machines in 1924, using a name previously designated to CTR's subsidiary in Canada and later South America. Its distinctive culture and product branding has given it the nickname Big Blue.
In 2011, Fortune ranked IBM the 18th largest firm in the U.S.,[5] as well as the 7th most profitable.[6] Globally, the company was ranked the 33rd largest firm by Forbes for 2010.[7] Other rankings for 2010 include #1 company for leaders (Fortune), #2 best global brand (Interbrand), #3 green company (Newsweek), #15 most admired company (Fortune), and #18 most innovative company (Fast Company).[8] IBM employs almost 400,000 employees (sometimes referred to as "IBMers") in over 200 countries, with occupations including scientists, engineers, consultants, and sales professionals.[9]
IBM holds more patents than any other U.S.-based technology company and has nine research laboratories worldwide.[10] Its employees have garnered five Nobel Prizes, four Turing Awards, nine National Medals of Technology, and five National Medals of Science.[11] The company has undergone several organizational changes since its inception, acquiring companies like SPSS (2009) and PwC consulting (2002) and spinning off companies like Lexmark (1991).
International Business Machines Corporation (IBM), incorporated on June 16, 1911, is an information technology (IT) company. The Company operates under five segments: Global Technology Services (GTS), Global Business Services (GBS), Software, Systems and Technology, and Global Financing. GTS primarily provides IT infrastructure services and business process services. GBS primarily provides professional services and application management services. IBM’s Software segment consists primarily of middleware and operating systems software. IBM provides clients with business solutions requiring advanced computing power and storage capabilities. Global Financing invests in financing assets, leverages with debt and manages the associated risks. During the year ended December 31, 2010, IBM acquired Intelliden Inc., National Interest Security Company, LLC, Cast Iron Systems, BigFix, Inc., Datacap Inc., Clarity Systems, BLADE Network Technologies, Netezza Corporation, Lombardi, Unica Corporation, PSS Systems and OpenPages. In April 2011, the Company acquired TRIRIGA, Inc.
Global Technology Services
GTS primarily provides IT infrastructure services and business process services. Its services include Strategic Outsourcing Services, Global Process Services, Integrated Technology Services, Maintenance and GTS Services Delivery. Its Strategic outsourcing Services include IT outsourcing services. IBM integrates its service management, technology and industry applications with new technologies, such as cloud computing and virtualization. Global Process Services ranges from standardized processing platforms and business process outsourcing, through transformational offerings, that deliver business results to clients through the change and/or operation of the client's business processes, applications and infrastructure, formerly business transformation outsourcing.
IBM's GTS Services Delivery is responsible for the worldwide delivery of IBM's technology- and process-based services. In support of technology-based services, GTS Services Delivery manages the privately owned IT infrastructure, supporting approximately 430 data centers. GTS Services Delivery also provides business process outsourcing and business process services.
Global Business Services
GBS primarily provides professional services and application management services. IBM’s services in this segment include Consulting and Systems Integration, and Application Management Services. Its application development, management, maintenance and support services are provided for packaged software, as well as custom and legacy applications. The Company delivers to clients, through consulting services, application services, enterprise applications (systems applications and products (SAP) and Oracle) and business analytics and optimization.
Software
IBM’s Software segment consists primarily of middleware and operating systems software. Middleware software enables clients to integrate systems, processes and applications across a standard software platform. Its software includes WebSphere Software, Information Management Software, Tivoli Software, Lotus Software, Rational Software, Business Analytics and Operating Systems. Information Management Software solutions include advanced database management, enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management and predictive analytics. Tivoli Software solutions include identity management, data security, storage management, automation and provisioning of the datacenter.
Lotus Software is a communication, messaging and social networking software. Rational Software supports software development for both IT and embedded system solutions with a suite of Application Lifecycle Management products. Rational’s technology platform includes Jazz. Business Analytics solutions include Cognos' business intelligence software, which provides tools that range from querying to forecasting, as well as statistical product and service solutions (SPSS) predictive analytics software. IBM’s Operating Systems software manages the fundamental processes that make computers run. Clients can also purchase ongoing subscription, which includes product upgrades and technical support.
Systems and Technology
The Company provides clients with business solutions requiring advanced computing power and storage capabilities. Approximately half of Systems and Technology's server and storage sales transactions are through IBM’s business partners; with the balance direct to clients. In addition, Systems and Technology provides semiconductor technology, products and packaging solutions to clients. Systems and Technology include systems, storage, retail store solutions and microelectronics.
A range of general purpose and integrated systems are designed and optimized for business, public and scientific computing needs. Its integrated systems, which include System z, Power Systems and System x, are the core technology in data centers that provide required infrastructure for business and institutions. Also, these systems form the foundation for IBM's integrated offerings, such as IBM Smart Business Storage Cloud, IBM Smart Analytics Cloud, IBM Smart Analytics System and IBM CloudBurst. IBM servers use both IBM and non-IBM microprocessor technology and operating systems.
IBM provides data storage products and solutions that allow clients to retain and manage volumes of digital information. The portfolio consists of a range of disk and tape storage systems and software, including the ultra-scalable disk storage system XIV. Its Retail Store Solutions is point-of-sale retail systems (network connected cash registers), as well as solutions that connect them to other store systems.
Global Financing
Global Financing invests in financing assets, leverages with debt and manages the associated risks. Global Financing consists of Client Financing, Commercial Financing, and Remanufacturing and Remarketing. Client financing provides lease and loan financing to end users and internal clients. Commercial Financing provides short-term inventory and accounts receivable financing to dealers and remarketers of IT products. Externally remarketed equipment revenue represents sales or leases to clients and resellers. Internally remarketed equipment revenue primarily represents used equipment that is sold or leased internally to the Systems and Technology and Global Services segments. The Systems and Technology segment may also sell the equipment that it purchases from Global Financing to external clients.
The Company competes with Accenture, Computer Sciences Corporation, Fujitsu, Hewlett-Packard Company (HP), HCL, Infosys, Tata Consulting Services, Cognizant and Wipro Technologies, Deloitte Consulting, CA, Inc., Microsoft Corporation, Oracle Corporation (Oracle), Dell, Inc. (Dell), EMC Corporation, HP, Cisco Systems, Inc. and General Electric Company.
In 1937, the U.S. Government deployed IBM tabulating equipment to maintain the employment records for 26 million people pursuant to the Social Security Act.[19] In 1938, the IBM World Headquarters Building, located at 590 Madison Avenue in New York, New York, was dedicated.
In 1952, Thomas J. Watson, Jr., became president of the company, ending almost 40 years of leadership by his father. In 1956, Arthur L. Samuel of IBM's Poughkeepsie, New York, laboratory programs an IBM 704 to play checkers using a method in which the machine can "learn" from its own experience. It is believed to be the first "self-learning" program, a demonstration of the concept of artificial intelligence. In 1957, IBM developed the FORTRAN (FORmula TRANslation) scientific programming language. In 1961, Thomas J. Watson, Jr., was elected chairman of the board and Albert L. Williams became president of the company. IBM develops the SABRE (Semi-Automatic Business-Related Environment) reservation system for American Airlines.
In 1963, IBM employees and computers helped NASA track the orbital flight of the Mercury astronauts, and a year later, the company moved its corporate headquarters from New York City to Armonk, New York. The latter half of that decade saw IBM continue its support of space exploration, with IBM participating in the 1965 Gemini flights, the 1966 Saturn flights, and the 1969 mission to land a man on the moon.
On April 7, 1964 IBM announced the first computer system family, the IBM System/360. Sold between 1964 and 1978, it was the first family of computers designed to cover the complete range of applications, from small to large, both commercial and scientific. For the first time, companies could upgrade their computing capabilities with a new model without rewriting their applications.
The company has nine research labs worldwide—Almaden, Austin, Brazil, China, Haifa, India , Tokyo, Watson (New York), and Zurich—with Watson (dedicated in 1961) serving as headquarters for the research division and the site of its annual meeting. Other campus installations include towers in Montreal, Paris, and Atlanta; software labs in Raleigh-Durham, Rome and Toronto; buildings in Chicago, Johannesburg, and Seattle; and facilities in Hakozaki and Yamato. The company also operates the IBM Scientific Center, the Hursley House, the Canada Head Office Building, IBM Rochester, and the Somers Office Complex. The company's contributions to architecture and design, including Chicago's 330 North Wabash building designed by Ludwig Mies van der Rohe, were recognized with the 1990 Honor Award from the National Building Museum.[26]
IBM's Board of Directors, with 14 members, is responsible for the overall management of the company. With Cathie Black's resignation from the board in November 2010, the remaining 13 members (along with their affiliation and year of joining the board) are as follows: Alain J. P. Belda '08 (Alcoa), William R. Brody '07 (Salk Institute / Johns Hopkins University), Kenneth Chenault '98 (American Express), Michael L. Eskew '05 (UPS), Shirley Ann Jackson '05 (Rensselaer Polytechnic Institute), Andrew N. Liveris '10 (Dow Chemical), W. James McNerney, Jr. '09 (Boeing), James W. Owens '06 (Caterpillar), Samuel J. Palmisano '00 (IBM), Joan Spero '04 (Doris Duke Charitable Foundation), Sidney Taurel '01 (Eli Lilly), and Lorenzo Zambrano '03 (Cemex).
OVERALL
Beta: 0.73
Market Cap (Mil.): $204,559.59
Shares Outstanding (Mil.): 1,211.20
Annual Dividend: 3.00
Yield (%): 1.78
FINANCIALS
IBM.N Industry Sector
P/E (TTM): 14.17 20.77 19.06
EPS (TTM): 15.92 -- --
ROI: 21.11 21.48 16.13
ROE: 67.53 23.51 17.80
Name Age Since Current Position
Palmisano, Samuel 59 2003 Chairman of the Board, President, Chief Executive Officer
Weber, Robert 60 2006 Senior Vice President - Legal and Regulatory Affairs, General Counsel
Iwata, Jon 48 2008 Senior Vice President - Marketing and Communications
MacDonald, J. Randall 62 2000 Senior Vice President - Human Resources
Loughridge, Mark 57 2010 Senior Vice President and Chief Financial Officer - Finance and Enterprise Transformation
Kelly, John 57 2007 Senior Vice President - Research and Intellectual Property
Mills, Steven 59 2010 Senior Vice President and Group Executive - Software and Systems
Sanford, Linda 58 2000 Senior Vice President - Enterprise Transformation
Shaughnessy, Timothy 53 2010 Senior Vice President - GTS Services Delivery
Daniels, Michael 56 2010 Senior Vice President and Group Executive - Services
Rometty, Virginia 53 2010 Senior Vice President and Group Executive - Sales, Marketing and Strategy
Adkins, Rodney 52 2007 Senior Vice President - Systems and Technology
Kern, R. Frankin 57 2009 Senior Vice President - Global Business Services
Arnold, Colleen 53 2010 Senior Vice President - Application Management Services
LeBlanc, Robert 52 2010 Senior Vice President - Middleware Software
Rhodin, Michael 50 2010 Senior Vice President - Software Solutions
Clementi, Erich 52 2010 Senior Vice President - Global Technology Services
Kavanaugh, James 44 2008 Vice President, Controller
Chenault, Kenneth 59 1998 Director
Taurel, Sidney 62 2001 Independent Director
Zambrano Trevino, Lorenzo 67 2003 Independent Director
Spero, Joan 67 2004 Independent Director
Eskew, Michael 61 2005 Independent Director
Jackson, Shirley 64 2005 Independent Director
Owens, James 65 2006 Independent Director
Brody, William 67 2007 Independent Director
Belda, Alain 67 2008 Independent Director
McNerney, W. James 61 2009 Independent Director
Liveris, Andrew 56 2010 Independent Director
COMPANY ADDRESS
International Business Machines Corp
One New Orchard Road
Armonk NY 10504
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