IBM 2005 Annual Report Download - page 19

Download and view the complete annual report

Please find page 19 of the 2005 IBM annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 105

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105

ManagementDiscussion
INTERNATIONALBUSINESSMACHINESCORPORATION ANDSUBSIDIARYCOMPANIES
18_ ManagementDiscussion
IBM’s Capabilities
Toexecuteitsstrategy,IBM’sbusinesscomprisesthreeprinci-
pal businesssegments:
Systems andFinancing
• Software
• Services
SYSTEMS AND FINANCING
SYSTEMS:
Servers. IBM systemsusingIBMoperatingsystems(zSeriesand
iSeries), as well as AIX, the IBM UNIX operating system
(pSeries) and the Microsoft Windows operating system
(xSeries). All servers can also run Linux, a key open source
operatingsystem.
Storage. Data storage products, including disk, tape, optical
andstorageareanetworks.
AdvancedFoundry. Integratedsupplychainservicesandafull
suite of semiconductor manufacturing services using either a
client’sorIBM’sdesign.
ApplicationSpecificIntegratedCircuit(ASICs). Manufacturingof
customizedsemiconductorproductsforclients.
Standardproductsandcustommicroprocessors.Semiconductors
designed and manufactured primarily based upon IBM’s
PowerPCarchitecture.
Printing Systems. Production print solutions, on demand print-
relatedsolutions,enterpriseworkgroupprinttechnologies, print
managementsoftware, services andmaintenance.
RetailStoreSolutions. Point-of-saleretailcheckout systems,soft-
wareandsolutions.
FINANCING:
Commercial financing. Short-term inventory and accounts
receivablefinancingtodealersandremarketersofITproducts.
(RevenuereportedasGlobalFinancing.)
Clientfinancing. Leaseandloanfinancingtoexternalandinter-
nal clients for terms generally between two and seven years.
(RevenuereportedasGlobalFinancing.)
Remarketing. Thesale and leaseofusedequipment(primarily
sourced from the conclusion of lease transactions) to new or
existingclients.(RevenuereportedasGlobalFinancing.)
SOFTWARE
DB2 INFORMATION MANAGEMENT SOFTWARE. Advanced database
andcontentmanagementsoftwaresolutionsthatenable clientsto
leverageinformationondemand.
LOTUS SOFTWARE. Collaboration and messaging software that
allowsacompany’semployees,clients,vendorsandpartnersto
engage in real-time and asynchronous communication and
knowledgemanagement.
RATIONAL SOFTWARE. Integrated tools designed to improve an
organization’ssoftwaredevelopmentprocessesandcapabilities.
TIVOLI SOFTWARE. Software for infrastructure management,
includingsecurity,change,configuration,jobscheduling,storage
capability,performanceandavailability.
WEBSPHERE SOFTWARE. Management of a wide variety of busi-
nessprocessesusingopenstandardstointerconnectapplica-
tions,dataandoperatingsystems.
SERVICES
BUSINESSPERFORMANCETRANSFORMATIONSERVICES(BPTS). Helps
clientstransformtheirspendingonbusinessprocesses,namely
Selling, General and Administrative, and Research and
Development. BPTS requires advanced technology and deep
expertise in industry and/or specific functions like human
resources,logistics,payroll,sales,customerservicesandpro-
curement,toresultinholisticimprovementfortheperformance
and success of a business, including efficiency of individual
processes and their combined effort. BPTS solutions are
delivered to clients by several of the company’s business
areas: Business Transformation Outsourcing, Engineering and
Technology Services, Strategy and Change Consulting and
BusinessPerformanceManagement.(Revenuereportedinvar-
ious segments.)
BUSINESSTRANSFORMATIONOUTSOURCING(BTO). Deliversimproved
business results to clients through the continual strategic
change and the operation and transformation of the client’s
businessprocesses,applicationsandinfrastructure.
ENGINEERING & TECHNOLOGY SERVICES (E&TS). System and com-
ponentdesignservices,strategicoutsourcingofclients’ design
teams,andtechnologyandmanufacturingconsultingservices.
(RevenuereportedasHardware segment.)
BUSINESSCONSULTINGSERVICES(BCS). Deliveryofvaluetoclients
through consulting services for client relationship manage-
ment,financialmanagement,humancapital,businessstrategy
andchange,andsupply-chainmanagement,aswellasappli-
cationinnovationandthetransformationofbusinessprocesses
andoperations.
BUSINESSPERFORMANCEMANAGEMENT(BPM). Enablescompanies
tovisualizeend-to-endprocessesacrossbusinessandITsys-
tems, analyze execution in real time against goals, and make
adjustments as needed. IBM offers consulting, services and
middleware to simulate and monitor business processes, and
provides clients with real-time analysis of the underlying IT
systems carrying out those processes. (Revenue reported as
Softwaresegment.)
CENTERFORBUSINESSOPTIMIZATION(CBO). Helpsclientscontinu-
allyoptimizetheirbusinessperformancebydrawinguponmas-
sive amounts of real-time data, advanced analytical methods,
businessexpertiseanddeepcomputingpower.