IBM 2005 Annual Report Download - page 19
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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.ManagementDiscussion
INTERNATIONALBUSINESSMACHINESCORPORATION ANDSUBSIDIARYCOMPANIES
18_ ManagementDiscussion
IBM’s Capabilities
Toexecuteitsstrategy,IBM’sbusinesscomprisesthreeprinci-
pal businesssegments:
• Systems andFinancing
• Software
• Services
SYSTEMS AND FINANCING
SYSTEMS:
Servers. IBM systemsusingIBMoperatingsystems(zSeriesand
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
operatingsystem.
Storage. Data storage products, including disk, tape, optical
andstorageareanetworks.
AdvancedFoundry. Integratedsupplychainservicesandafull
suite of semiconductor manufacturing services using either a
client’sorIBM’sdesign.
ApplicationSpecificIntegratedCircuit(ASICs). Manufacturingof
customizedsemiconductorproductsforclients.
Standardproductsandcustommicroprocessors.Semiconductors
designed and manufactured primarily based upon IBM’s
PowerPCarchitecture.
Printing Systems. Production print solutions, on demand print-
relatedsolutions,enterpriseworkgroupprinttechnologies, print
managementsoftware, services andmaintenance.
RetailStoreSolutions. Point-of-saleretailcheckout systems,soft-
wareandsolutions.
FINANCING:
Commercial financing. Short-term inventory and accounts
receivablefinancingtodealersandremarketersofITproducts.
(RevenuereportedasGlobalFinancing.)
Clientfinancing. Leaseandloanfinancingtoexternalandinter-
nal clients for terms generally between two and seven years.
(RevenuereportedasGlobalFinancing.)
Remarketing. Thesale and leaseofusedequipment(primarily
sourced from the conclusion of lease transactions) to new or
existingclients.(RevenuereportedasGlobalFinancing.)
SOFTWARE
DB2 INFORMATION MANAGEMENT SOFTWARE. Advanced database
andcontentmanagementsoftwaresolutionsthatenable clientsto
leverageinformationondemand.
LOTUS SOFTWARE. Collaboration and messaging software that
allowsacompany’semployees,clients,vendorsandpartnersto
engage in real-time and asynchronous communication and
knowledgemanagement.
RATIONAL SOFTWARE. Integrated tools designed to improve an
organization’ssoftwaredevelopmentprocessesandcapabilities.
TIVOLI SOFTWARE. Software for infrastructure management,
includingsecurity,change,configuration,jobscheduling,storage
capability,performanceandavailability.
WEBSPHERE SOFTWARE. Management of a wide variety of busi-
nessprocessesusingopenstandardstointerconnectapplica-
tions,dataandoperatingsystems.
SERVICES
BUSINESSPERFORMANCETRANSFORMATIONSERVICES(BPTS). Helps
clientstransformtheirspendingonbusinessprocesses,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,customerservicesandpro-
curement,toresultinholisticimprovementfortheperformance
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
BusinessPerformanceManagement.(Revenuereportedinvar-
ious segments.)
BUSINESSTRANSFORMATIONOUTSOURCING(BTO). Deliversimproved
business results to clients through the continual strategic
change and the operation and transformation of the client’s
businessprocesses,applicationsandinfrastructure.
ENGINEERING & TECHNOLOGY SERVICES (E&TS). System and com-
ponentdesignservices,strategicoutsourcingofclients’ design
teams,andtechnologyandmanufacturingconsultingservices.
(RevenuereportedasHardware segment.)
BUSINESSCONSULTINGSERVICES(BCS). Deliveryofvaluetoclients
through consulting services for client relationship manage-
ment,financialmanagement,humancapital,businessstrategy
andchange,andsupply-chainmanagement,aswellasappli-
cationinnovationandthetransformationofbusinessprocesses
andoperations.
BUSINESSPERFORMANCEMANAGEMENT(BPM). Enablescompanies
tovisualizeend-to-endprocessesacrossbusinessandITsys-
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
Softwaresegment.)
CENTERFORBUSINESSOPTIMIZATION(CBO). Helpsclientscontinu-
allyoptimizetheirbusinessperformancebydrawinguponmas-
sive amounts of real-time data, advanced analytical methods,
businessexpertiseanddeepcomputingpower.