IBM 2007 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2007 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 128

  • 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
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

2
been globally integrating IBM’s operations rapidly, locating our
work and functions wherever it makes the most sense, based
on the right cost, the right skills and the right business environment.
Today we have a truly global supply chain; we develop software
globally; our network of research laboratories is worldwide; and
we deliver services on an unmatched global scale. We are continuing
to transform our processes and functions to move IBM to this
profoundly new model of the corporation, which we call the
Globally Integrated Enterprise.
Technology: IBM has been saying it for many years: The
basic computing model has changed. The PC model of the 1980s
has receded in importance to clients, and has been replaced by
a new paradigm, based on openness, networks, powerful new
technology and the integration of digital intelligence into the fabric
of work and life.
As you know, we have dramatically changed our mix of
products, services, skills and technologies. We exited businesses
like PCs and hard disk drives
—
businesses that we had invented.
We shifted our internal R&D and have made more than 60 acquisi-
tions over the past five years. At the time, many were skeptical
—
but
one need only look at today’s headlines to see how strongly some
PC-era leaders are trying to move away from the old model and
embrace the new one.
IBM’s product and technology portfolio today is built around
networked, modularized and embedded technologies, including
Results from Continuing Operations
Revenue Income
($ in billions) ($ in billions)
0
20
40
60
80
$100
04
96.3
05
91.1
06
91.4
07
98.8
03
89.1
04
7.5
05
8.0
06
9.4
07
10.4
03
6.6
0
2
4
6
8
$12
10
2005 performance includes results from four months of the IBM PC business, which was divested on April 30, 2005.