IBM 2007 Annual Report Download - page 21

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Management Discussion
International Business Machines Corporation and Subsidiary Companies
19
Business Segments and Capabilities
The company’s major operations comprise a Global Technology
Services segment; a Global Business Services segment; a Systems
and Technology segment; a Software segment; and a Global Finan-
cing segment.
Global Services is a critical component of the company’s strategy of
providing IT infrastructure and business insight and solutions to
clients. While solutions often include industry-leading IBM software
and hardware, other suppliers’ products are also used if a client solu-
tion requires it. Contracts for IBM services — commonly referred to
as “signings” — can range from less than one year to over 10 years.
Within Global Services there are two reportable segments: Global
Technology Services and Global Business Services.
GLOBAL TECHNOLOGY SERVICES (GTS) segment primarily
reflects IT infrastructure services and business process services,
delivering value through the company’s global scale, standardization
and automation.
GTS Capabilities
Strategic Outsourcing Services. Comprehensive IT services integrated
with business insight working with clients to reduce costs and improve
productivity through the outsourcing of processes and operations.
Business Transformation Outsourcing. A range of offerings from stan-
dardized processing platforms and Business Process Outsourcing
through transformational offerings that delivers improved business
results to clients through the strategic change and/or operation of
the client’s business processes, applications and infrastructure.
Integrated Technology Services. Services offerings that help clients
access, manage and support their technology infrastructures, through
a combination of skilled resources, software and IBM’s knowledge of
business processes.
Maintenance. A number of support services from product maintenance
through solution support to maintain and improve the availability of
clients’ IT infrastructure.
GLOBAL BUSINESS SERVICES (GBS) segment primarily reflects
professional services and application outsourcing services, delivering
business value and innovation to clients through solutions which
leverage industry- and business-process expertise.
GBS Capabilities
Consulting and Systems Integration. Delivery of value to clients through
consulting services for client-relationship management, financial man-
agement, human-capital management, business strategy and change,
and supply-chain management.
Servers
Storage
Retail Store Solutions
Microelectronics
Commercial Financing
Client Financing
WebSphere
Information Management
Tivoli
Lotus
Rational
Operating Systems
Strategic Outsourcing
Business Transformation Outsourcing
Integrated Technology Services
Maintenance
Consulting and Systems Integration
Application Management Services
Services
Systems &
Financing
Software