IBM 2013 Annual Report Download - page 34

33
Management Discussion
International Business Machines Corporation and Subsidiary Companies
Software Capabilities
WebSphere Software: delivers capabilities that enable organizations
to run high-performance business applications. With these applica-
tions, clients can integrate and manage business processes across
their organizations with the flexibility and agility they need to respond
to changing conditions. Built on services-oriented architecture (SOA),
and open standards support for cloud, mobile and social interactions,
the WebSphere platform enables enterprises to extend their reach
and optimize interactions with their key constituents. Smarter Com-
merce software helps companies better manage and improve each
step of their value chain and capitalize on opportunities for profitable
growth, efficiency and increased customer loyalty.
Information Management Software: enables clients to integrate,
manage and analyze enormous amounts of data from a large variety
of sources in order to gain competitive advantage and improve their
business outcomes. With this approach, clients can extract real value
out of their data and use it to make better business decisions. IBM’s
middleware and integrated solutions include advanced database
management, information integration, data governance, enterprise
content management, data warehousing, business analytics and intel-
ligence, predictive analytics and big data analytics.
Watson Solutions: included within Information Management Soft-
ware, Watson is the first commercially available cognitive computing
platform that has the ability to interact in natural language, process-
ing vast amounts of big data, and learning from its interactions with
people and computers. As an advisor, Watson is able to sift through
and understand large amounts of data delivering insights with
unprecedented speeds and accuracy.
Tivoli Software: helps clients optimize the value they get from their
infrastructures and technology assets through greater visibility, con-
trol and automation across their end-to-end business operations.
These asset management solutions foster integrated service deliv-
ery for cloud and datacenter management, enterprise endpoint
and mobile device management, asset and facilities management,
and storage management. Tivoli includes security systems software
that provides clients with a single security intelligence platform that
enables them to better secure all aspects of their enterprise and
prevent security breaches.
Social Workforce Solutions: enables businesses to connect people
and processes for more effective communication and increased
productivity through collaboration, messaging and social network -
ing software. By remaining at the forefront of collaboration tools,
IBM’s social business offerings help organizations reap real ben-
efits associated with social networking, as well as create a more
efficient and effective workforce.
Rational Software: supports software development for both IT and
complex embedded system solutions, with a portfolio of products
and solutions supporting DevOps and Smarter Product Develop-
ment, transforming the way lines of business, development and
operations work together to deliver innovation via software.
Mobile Software: spans middleware and offers customers true end-
to-end mobile solutions across platform and application
development, mobile security, and mobile device management.
Leveraging powerful analytics and usage data, customers are pro-
vided with the ability to have more compelling interactions with their
clients and workforce, increasing touchpoints and deepening rela-
tionships. The mobile offerings provide the ability to increase
workforce productivity through enhanced collaboration, improved
knowledge sharing and increased response speed.
Systems and Technology (STG) provides clients with business
solutions requiring advanced computing power and storage capa-
bilities. Approximately half of Systems and Technology’s server and
storage sales transactions are through the company’s business
partners; with the balance direct to end-user clients. In addition,
Systems and Technology provides leading semiconductor technol-
ogy, products and packaging solutions for IBM’s own advanced
technology needs and for external clients.
Systems and Technology Capabilities
Systems: a range of general purpose and integrated systems
designed and optimized for specific business, public and scientific
computing needs. These systems—System z, Power Systems and
System x—are typically the core technology in data centers that pro-
vide required infrastructure for business and institutions. Also, these
systems form the foundation for IBM’s integrated offerings, such as
IBM PureSystems, IBM Smart Analytics, IBM PureData System for
Analytics powered by Netezza, IBM SmartCloud Entry and IBM
BladeCenter for Cloud. IBM servers use both IBM and non-IBM micro-
processor technology and operating systems. All IBM servers run
Linux, a key open-source operating system, and the company is
expanding its Linux relevance further on the Power platform.
Storage: data storage products and solutions that allow clients to
retain and manage rapidly growing, complex volumes of digital infor-
mation. These solutions address critical client requirements for
information retention and archiving, security, compliance and stor-
age optimization including data deduplication, availability and
virtualization. The portfolio consists of a broad range of disk and
tape storage systems, leveraging the breadth of IBM’s software
offerings, and includes Flash storage and solutions.
Microelectronics: semiconductor design and manufacturing primarily
for use in IBM systems and storage products as well as delivering
semiconductors and related services to external clients.
Global Financing facilitates clients’ acquisition of IBM systems, soft-
ware and services. Global Financing invests in financing assets,
leverages with debt and manages the associated risks with the objective
of generating consistently strong returns on equity. The primary focus
on the company’s offerings and clients mitigates many of the risks nor-
mally associated with a financing company. Global Financing has the
benefit of both a deep knowledge of its client base and a clear insight
into the products and services that are being financed. This combina-
tion allows Global Financing to effectively manage two of the major risks
(credit and residual value) that are normally associated with financing.
Global Financing Capabilities
Client Financing: lease and loan financing to end users and internal
clients for terms generally between one and seven years. Internal
financing is predominantly in support of Global Services’ long-term