IBM 2014 Annual Report Download - page 7

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• We introduced major technological advances with
POWER8 and software defined storage — built for cloud
and Big Data.
• In January 2015 we launched our new z13 mainframe.
Built for the mobile era, it processes massive volumes
of transactions while tapping back-office data and
simultaneously applying real-time analytics for deeper
insights and fraud detection.
• Historically, we kept our industry-leading Power technology
all to ourselves. Today, we see greater value by enabling
an OpenPOWER ecosystem, which allows partners to
innovate and build on the Power technology. Launched
in 2013, the OpenPOWER Foundation began with five
members and now stands at more than 100 around the
world. The U.S. Department of Energy recently awarded
IBM a long-term, $325 million contract to create future
supercomputers based on OpenPOWER technology.
All of this speaks to the enduring quality of IBM as a high-
value innovation company. Last year we again spent about
6percent of our revenue on research and development —
and the ratio within our software business is double that.
We invested $4 billion on capital expenditures. IBMers are
prolific innovators. For the 22nd straight year, we earned the
most U.S. patents of any organization, averaging 20 a day.
2015: Our transformation continues
Our direction is clear. We remain confident in our strategy,
and we have made much progress. In 2015 we will build on
our momentum:
1. We will shift an additional $4 billion of spending
to data, cloud and engagement this year, aimed at
deepening our differentiation in the marketplace.
In February we introduced innovations to make hybrid
cloud a reality for the enterprise. We are also growing our
portfolio of industry-specific analytics solutions in areas
ranging from counter-fraud and oil and gas exploration, to
airline maintenance and the Internet of Things. And we
began the year by establishing a number of business units
focused on markets and industries being transformed by
our strategic imperatives: IBM Commerce, IBM Analytics,
IBM Security and IBM Cloud. We have announced plans
for an IBM Healthcare unit.
2. We will continue to bring innovation to our core
franchises — innovation highly valued by our clients.
I previously mentioned the entirely refreshed line of
mainframes, IBM Power Systems and storage. We will
continue to apply breakthroughs from IBM Research to
our products and services. In software, we will accelerate
our march to “as-a-service.” In services, we will deploy
advanced automation to delivery. And we will continue
helping new and existing outsourcing clients transform
their infrastructure and processes by leveraging IBM’s
hybrid cloud platform. This was an important differentiator
in helping us to sign nearly 50 contracts worth greater
6