3.7 IBM: The World's Top Provider of Computer SPSS sPss Dats File ices Hardware, Software, and Serv International Business Machines (IBM, www.ibm.com) had IBM acquired PricewaterhouseCoopers: consulting and IT been dubbed the proverbial "sinking ship" in the early services unit, PWC Consulting, for an estimated $3.5 billion nineties, but since then, due to the competent leadership of its in cash and stock. Presenting IBM with a significant integra- management team, IBM has made a successful comeback. tion challenge, the transaction also served the dual purpose of IBM, with $91.13 billion in revenue in 2005, is the world's augmenting IBM's standard array of outsourcing, mainte top provider of computer hardware, software, and services. nance, and integration services, while moving the company to U.S. sales. Among the leaders in almost every market in IBM has largely used acquisitions to become a leader Microsoft. A pioneer in server operating system software, Roughly a third of IBM's revenues in 2005 can be attributed into high-end management consulting. which it competes, IBM makes mainframes and servers. in yet another market software-where it trails ol storage systems, and peripherals in its hardware product stream. IBM's service arm is the largest in the world. It is also IBM made an early move into m its acquisitions of Lotus Development (1995) and Tivoli (1996). Its software operations now focused primarily on e-commerce infrastructure, IBM has continued push beyond OS software, purchasing the database opera- tions of Informix (2001) and application integration products from Cross Worlds Software (2002). In 2003, IBM acquired one of the largest providers of both software (ranking number BM has tradi- agement software with two, behind Microsoft) and semiconductors. I tionally used acquisitions to augment its software businesses, while streamlining its hardware, software, and service and service its IBM has seen significant changes in recent years. It reorganized laptop operations to concentrate on its leading enterprise server and storage products. Early in 2004 IBM announced that it would also combine its technology (microchips) and systems (servers, storage) groups. Late in 2004, IBM ended the year with an agreement to sell its PC business-a segment and software products. that has yielded little profit for the company in recent years- development tool maker Rational Software for $2.1 billion in cash, and it also acquired supply chain software developer d its hardware business, merging its desktop and Trigo Technologies early in 2004 IBM is one of the top Fortune 500 companies. Roughly half of IBM's revenues and profits come from its hardware In order to compete with Microsoft, IBM, along with o China's Lenovo. IBM plans to retain a 19 percent stake others like Sun, has supported the Linux platform in a big in the expanded Lenovo, and it.will serve as the preferred way. Also, the open source initiative that IBM and others have spearheaded is seen as an effective means of cornering Dervice and financing provider for the company IBM's growing services business now accounts for Microsoft. To gain support in the developer community, IBM t half of its sales, even though it is traditionally seen as has fully supported Java in its flagship middleware software provider of mainframe hardware. Looking to extend its lead, platform, Websphere, and also in its other parallel products IBM Annual Revenues & Profits 120.00 100.00 80.00 a Revenues (billions) Gross Profits (billions) 40.00 20.0 0.00 3.7 IBM: The World's Top Provider of Computer SPSS sPss Dats File ices Hardware, Software, and Serv International Business Machines (IBM, www.ibm.com) had IBM acquired PricewaterhouseCoopers: consulting and IT been dubbed the proverbial "sinking ship" in the early services unit, PWC Consulting, for an estimated $3.5 billion nineties, but since then, due to the competent leadership of its in cash and stock. Presenting IBM with a significant integra- management team, IBM has made a successful comeback. tion challenge, the transaction also served the dual purpose of IBM, with $91.13 billion in revenue in 2005, is the world's augmenting IBM's standard array of outsourcing, mainte top provider of computer hardware, software, and services. nance, and integration services, while moving the company to U.S. sales. Among the leaders in almost every market in IBM has largely used acquisitions to become a leader Microsoft. A pioneer in server operating system software, Roughly a third of IBM's revenues in 2005 can be attributed into high-end management consulting. which it competes, IBM makes mainframes and servers. in yet another market software-where it trails ol storage systems, and peripherals in its hardware product stream. IBM's service arm is the largest in the world. It is also IBM made an early move into m its acquisitions of Lotus Development (1995) and Tivoli (1996). Its software operations now focused primarily on e-commerce infrastructure, IBM has continued push beyond OS software, purchasing the database opera- tions of Informix (2001) and application integration products from Cross Worlds Software (2002). In 2003, IBM acquired one of the largest providers of both software (ranking number BM has tradi- agement software with two, behind Microsoft) and semiconductors. I tionally used acquisitions to augment its software businesses, while streamlining its hardware, software, and service and service its IBM has seen significant changes in recent years. It reorganized laptop operations to concentrate on its leading enterprise server and storage products. Early in 2004 IBM announced that it would also combine its technology (microchips) and systems (servers, storage) groups. Late in 2004, IBM ended the year with an agreement to sell its PC business-a segment and software products. that has yielded little profit for the company in recent years- development tool maker Rational Software for $2.1 billion in cash, and it also acquired supply chain software developer d its hardware business, merging its desktop and Trigo Technologies early in 2004 IBM is one of the top Fortune 500 companies. Roughly half of IBM's revenues and profits come from its hardware In order to compete with Microsoft, IBM, along with o China's Lenovo. IBM plans to retain a 19 percent stake others like Sun, has supported the Linux platform in a big in the expanded Lenovo, and it.will serve as the preferred way. Also, the open source initiative that IBM and others have spearheaded is seen as an effective means of cornering Dervice and financing provider for the company IBM's growing services business now accounts for Microsoft. To gain support in the developer community, IBM t half of its sales, even though it is traditionally seen as has fully supported Java in its flagship middleware software provider of mainframe hardware. Looking to extend its lead, platform, Websphere, and also in its other parallel products IBM Annual Revenues & Profits 120.00 100.00 80.00 a Revenues (billions) Gross Profits (billions) 40.00 20.0 0.00