About International Business Machines

International Business Machines Corporation (IBM) engages in the software, consulting, infrastructure, and financing businesses. IBM operates in more than 175 countries around the world. The company’s platform-centric hybrid cloud and artificial intelligence (AI) strategy is executed through its operations. IBM is addressing the hybrid cloud and AI opportunity with a platform-centric approach, focused on providing client value through a combination of technology and business expertise. The company provides integrated solutions and products that leverage: data, information technology, deep expertise in industries and business processes, with trust and security and a broad ecosystem of partners and alliances. The company’s hybrid cloud platform and AI technology and services capabilities support clients’ digital transformations and help them engage with their customers and employees in new ways. These solutions draw from an industry-leading portfolio of capabilities in software, consulting services and a deep incumbency in mission-critical systems, all bolstered by one of the world’s leading research organizations. Segments The company operates through four business segments: Software, Consulting, Infrastructure, and Financing. Software Software segment provides software solutions that address client needs for a hybrid cloud platform, data and AI, automation, and security on their journey to hybrid cloud. It includes all software, except operating system software reported in the Infrastructure segment. Software comprises two business areas – Hybrid Platform & Solutions and Transaction Processing, which have the following capabilities: Hybrid Platform & Solutions: Includes software, infused with AI, to help clients operate, manage and optimize their IT resources and business processes within hybrid, multi-cloud environments. It includes the following: Red Hat: Provides enterprise open-source solutions, for hybrid, multi-cloud environments, which includes Red Hat Enterprise Linux (RHEL), OpenShift, the company’s hybrid cloud platform, as well as Ansible. Automation: Optimizes processes from business workflows to IT operations with AI-powered automation. Automation includes software for business automation, IT automation, integration and application runtimes. Data & AI: Accelerates data-driven agendas by infusing AI throughout the enterprise, empowering intelligent decision making. The portfolio includes capabilities that simplify data consumption through data fabric with data management, optimize lifecycle management, and make better predictions through business analytics. Data & AI capabilities facilitate sustainable, resilient businesses and enable intelligent management of enterprise assets and supply chains with environmental intelligence and the world’s most accurate weather forecast data. Security: Creates a risk-aware, secure business by gaining real-time threat insights, orchestrating actions and automating responses across all touchpoints, in line with a zero-trust security strategy. Security includes software and services for threat management, data security, and identity and access management. Transaction Processing: The software that supports clients’ mission-critical, on-premise workloads in industries, such as banking, airlines and retail. This includes transaction processing software, such as Customer Information Control System and storage software, as well as the analytics and integration software running on IBM operating systems, such as DB2 and WebSphere running on z/OS. Consulting Consulting segment provides deep industry expertise and market-leading capabilities in business transformation and technology implementation. Consulting segment designs, builds and operates technology and business processes based on open, hybrid cloud architectures with IBM technology and ecosystem partner technologies. Consulting uses its IBM Garage method to convene experts to co-create solutions with clients to accelerate their digital transformations through AI and automation. Consulting comprises three business areas – Business Transformation, Technology Consulting, and Application Operations, which have the following capabilities: Business Transformation: Provides strategy, process design, system implementation and operations services to improve and transform key business processes. These services deploy AI and automation in business processes to exploit the value of data and include an ecosystem of partners alongside IBM technology, including strategic partnerships with Adobe, Oracle, Salesforce and SAP, among others. Technology Consulting: Helps clients architect and implement solutions across cloud platforms, including Amazon, Microsoft and IBM, and strategies to transform the enterprise experience and enable innovation, including application modernization for hybrid cloud with Red Hat OpenShift. Application Operations: Focuses on application and cloud platform services required to operationalize and run cloud platforms. It facilitates clients’ efforts to manage, optimize and orchestrate application and data workloads across platforms and environments through both custom applications and ISV packages. Infrastructure Infrastructure segment provides trusted, agile and secure solutions for hybrid cloud and is the foundation of the hybrid cloud stack. Infrastructure is optimized for infusing AI into mission-critical transactions and tightly integrated with IBM Software, including Red Hat for accelerated hybrid cloud benefits. Infrastructure comprises two business areas – Hybrid Infrastructure and Infrastructure Support, which have the following capabilities: Hybrid Infrastructure: Provides clients with innovative infrastructure platforms to help meet the new requirements of hybrid multi-cloud and enterprise AI workloads leveraging flexible and as-a-service consumption models. Hybrid Infrastructure includes zSystems and Distributed Infrastructure. zSystems: The premier transaction processing platform with leading security, resilience and scale, highly optimized for mission-critical, high-volume transaction workloads. It includes zSystems and LinuxONE, with a range of high-performance systems designed to address computing capacity, security and performance needs of businesses. zSystems operating system software environments include z/OS, a security-rich, high-performance enterprise operating system, as well as Linux and other platforms that are enabled with enterprise AI and are hybrid cloud ready. Distributed Infrastructure: The portfolio is uniquely positioned for hybrid cloud, meeting client demands for scalability, security and capacity. Distributed Infrastructure includes Power, Storage and IBM Cloud Infrastructure-as-a-Service (IaaS). Power consists of high-performance servers, designed and engineered for big data and AI-enabled workloads and are optimized for hybrid cloud and Linux. The Storage portfolio consists of a broad range of storage hardware and software-defined offerings, including Z-attach and distributed flash, tape solutions, software-defined storage controllers, data protection software and network-attach storage. IBM Cloud IaaS is built on enterprise-grade hardware with an open architecture and is specifically designed for regulated industries with leading security and compliance capabilities. IBM Cloud IaaS offers flexible computing options across x86, Power, Storage and zSystems as a service to meet client workload needs. Hybrid Infrastructure also includes remanufacturing and remarketing of used equipment with a focus on sustainable recovery services. Infrastructure Support: Works across hybrid cloud environments providing a uniquely integrated services experience for clients. Infrastructure Support delivers comprehensive, proactive and AI-enabled services to maintain and improve the availability and value of clients’ IT infrastructure (hardware and software) both on-premises and in the cloud. These offerings include maintenance for IBM products and other technology platforms, as well as open-source and cross-vendor software and solution support. Financing Financing segment facilitates IBM clients’ acquisition of information technology systems, software and services through its financing solutions. The financing arrangements are predominantly for products or services that are critical to the end users’ business operations and support IBM’s hybrid cloud and AI strategy. Financing conducts a comprehensive credit evaluation of its clients prior to extending financing. As a captive financier, Financing has the benefit of both deep knowledge of its client base and a clear insight into the products and services financed. Financing comprises the following two business areas – Client Financing and Commercial Financing: Client Financing: Lease, installment payment plan and loan financing to end-user clients for terms up to seven years, and internal loan financing in the support of IBM IaaS service arrangements. Assets financed are primarily new and used IT hardware, software and services where the company has expertise. Commercial Financing: Short-term working capital financing to distributors and resellers primarily of IBM products. The company has an existing agreement with a third-party investor to sell IBM short-term commercial financing receivables on a revolving basis. Strategic Partnerships The company proactively partners with a broad variety of companies, including hyperscalers, service providers, global system integrators, and software and hardware vendors. The company works alongside its partners to deliver end-to-end solutions that address the company’s clients’ complex business challenges while accelerating growth. The company’s strategic partners include Adobe, Amazon Web Services (AWS), Cisco Systems, Microsoft, Oracle, Salesforce, Samsung Electronics, and SAP, among others. Strategy IBM continues to execute its Hybrid Cloud and AI strategy, the two most transformative technologies for business. The company has continually delivered innovation in its software and infrastructure offerings and scaled and enhanced the capabilities of the company’s consulting practices. The company has expanded its partner ecosystem, simplified its go-to-market model, and pursued strategic acquisitions and divestitures. The company’s strategy aligns with the needs of its clients. Its strategies include differentiated value proposition and expanding client engagements and the company’s ecosystem. IBM’s integrated value is amplified by ensuring the company’s existing businesses all advance the hybrid cloud value proposition to the company’s clients. The company strategically embed the Red Hat platform with its offerings: IBM Software’s growing portfolio runs on Red Hat OpenShift Container Platform (OCP), IBM Infrastructure solutions are optimized hybrid cloud deployments for mission-critical workloads, and IBM Consulting is the leading market system integrator with hybrid cloud and Red Hat expertise to help clients transform their business and technology. Research, Development and Engineering The company’s research, development and engineering expenses were $6,567 million in 2022. Competition Software: The principal competitors in this segment include Alphabet (Google), Amazon, BMC, Broadcom, Cisco Systems, Informatica, Microsoft, Oracle, Palo Alto Networks, Salesforce, SAP, Splunk and VMware. Consulting: The company’s broad-based competitors include Accenture and Capgemini. Infrastructure: The company’s principal competitors include Dell Technologies, Hewlett-Packard Enterprise (HPE), Intel, NetApp, and Pure Storage. History The company was founded in 1911. It was incorporated in the state of New York in 1911. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924.

Country
Industry:
Computer programming, data processing, and other computer related services
Founded:
1911
IPO Date:
01/02/1968
ISIN Number:
I_US4592001014
Address:
One New Orchard Road, Armonk, New York, 10504, United States
Phone Number
914 499 1900

Key Executives

CEO:
Krishna, Arvind
CFO
Kavanaugh, James
COO:
Wright, Joanne