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International Business Machines
Company typePublic (NYSE: IBM)
IndustryComputer hardware
Computer software
Consulting
IT Services
Founded1889, incorporated 1911
Headquarters
Armonk, New York
,
USA
Key people
Samuel J. Palmisano, Chairman & CEO
Mark Loughridge SVP & CFO
Dan Fortin, President (Canada)
Frank Kern, President (Asia Pacific)
Nick Donofrio, EVP (Innovation & Technology)
Bruno Di Leo, President IOT Northeast Europe
Dominique Cerutti, President IOT Southwest Europe
ProductsSee complete products listing
RevenueIncrease $91.4 billion USD (+4% FY '05 to '06)
1,156,000,000 United States dollar (2022) Edit this on Wikidata
Increase $9.4 billion USD (+18% FY '05 to '06)
Total assets155,971,000,000 United States dollar (2020) Edit this on Wikidata
Number of employees
355,766 (2006)[1]
SubsidiariesADSTAR
FileNet
Informix
Iris Associates
Lotus Software
Rational Software
Sequent Computer Systems
Tivoli Systems, Inc.
Apollo Computers
Websitewww.ibm.com
"IBM" redirects here. For For other uses see IBM (disambiguation) or Big Blue, see IBM (disambiguation).

International Business Machines Corporation (known as IBM or "Big Blue"; NYSE: IBM) is a multinational computer technology and consulting corporation headquartered in Armonk, New York, USA. The company is one of the few information technology companies with a continuous history dating back to the 19th century. IBM manufactures and sells computer hardware, software, infrastructure services, hosting services and consulting services in areas ranging from mainframe computers to nanotechnology.[3]

It has been known through most of its recent history as the world's largest computer company. With over 350,000 employees worldwide, IBM is the largest information technology employer in the world. IBM holds more patents than any other U.S. based technology company.[4] It has engineers and consultants in over 170 countries and IBM Research has eight laboratories worldwide.[5] IBM employees have earned three Nobel Prizes, four Turing Awards, five National Medals of Technology, and five National Medals of Science.[6] As a chip maker, IBM is among the Worldwide Top 20 Semiconductor Sales Leaders.

History

File:Ibm pc xt.jpg
IBM PC XT personal computer.
Main article: History of IBM
See also: Computing Tabulating Recording Corporation (CTR) and Herman Hollerith

The company which became IBM was founded in 1888 as Herman Hollerith and the Tabulating Machine Company. It was incorporated as Computing Tabulating Recording Corporation (CTR) on June 15, 1911, and was listed on the New York Stock Exchange in 1916. IBM adopted its current name in 1924, when it became a Fortune 500 company.

Current projects

Eclipse

Main article: Eclipse (software)

Eclipse is a platform-independent, Java-based software framework. Eclipse was originally a proprietary product developed by IBM as a successor of the VisualAge family of tools. Eclipse has subsequently been released as free/open source software under the Eclipse Public License.

alphaWorks

Main article: alphaWorks

alphaWorks is IBM's source for emerging software technologies. These technologies include:

  • Flexible Internet Evaluation Report Architecture - A highly flexible architecture for the design, display, and reporting of Internet surveys.
  • IBM History Flow Visualization Application - A tool for visualizing dynamic, evolving documents and the interactions of multiple collaborating authors.
  • IBM Linux on POWER Performance Simulator - A tool that provides users of Linux on Power a set of performance models for IBM's POWER processors.
  • Database File Archive And Restoration Management - An application for archiving and restoring hard disk files using file references stored in a database.
  • Policy Management for Autonomic Computing - A policy-based autonomic management infrastructure that simplifies the automation of IT and business processes.
  • FairUCE - A spam filter that verifies sender identity instead of filtering content.
  • Unstructured Information Management Architecture (UIMA) SDK - A Java SDK that supports the implementation, composition, and deployment of applications working with unstructured information.
  • Accessibility Browser - A web-browser specifically designed to assist the visually-impared, to be released as open-source software. Also known as the "A-Browser," the technology will aim to eliminate the need for a mouse, relying instead completely on voice-controls, buttons and predefined shortcut keys.

Extreme Blue

Extreme Blue is a company initiative that uses experienced IBM engineers, talented interns, and business managers to develop high-value technology. The project is designed to analyze emerging business needs and the technologies that can solve them. These projects mostly involve rapid-prototyping of high-profile software and hardware projects. Entry into ExtremeBlue is competitive for both interns and IBM employees.

Gaming

IBM's Wii "Broadway" CPU

Virtually all modern console gaming systems use microprocessors developed by IBM. The Xbox 360 contains the Xenon tri-core chipset, which was designed and produced by IBM in less than 24 months.[7] Sony's PlayStation 3 features the cell microprocessor designed jointly by IBM, Toshiba, and Sony. Nintendo's seventh-generation console, Wii, features an IBM chip codenamed Broadway. The older Nintendo GameCube also utilizes the Gekko processor, designed by IBM.

In May 2002, IBM and Butterfly.net, Inc. announced the Butterfly Grid, a commercial grid for the online video gaming market.[8] In March 2006, IBM announced separate agreements with Hoplon Infotainment, Online Game Services Incorporated (OGSI), and RenderRocket to provide on-demand content management and blade server computing resources.[9]

Open Client Offering

IBM announced it will launch its new software, called “Open Client Offering” which is to run on Microsoft's Windows, Linux and Apple Computer's Macintosh. The company states that its new product allows businesses to offer employees a choice of using the same software on Windows and its alternatives. This means that “Open Client Offering” is to cut costs of managing whether Linux or Apple relative to Windows. There will be no necessity for companies to pay Microsoft for its licenses for operations since the operations will no longer rely on software which is Windows-based. One of alternatives to Microsoft is IBM's Open Document Format software. It is going to be used for several tasks like: word processing, presentations, along with collaboration with Lotus, instant messaging and blog tools as well as an Internet Explorer competitor – the Firefox web browser. IBM plans to install Open Client on 5 percent of its desktop PCs. PSA Peugeot Citroen in January 2007 signed an agreement with Novell to run Linux on its 20,000 desktop PCs and 2,500 server computers. Scott Handy said that the “Open Client Offering” software underpins this deal.[10]

UC2: Unified Communications and Collaboration

UC2 (Unified Communications and Collaboration) is an IBM and Cisco joint project based on Eclipse and OSGi. It will offer the numerous Eclipse application developers a unified platform for an easier work.

The software based on UC2 platform will provide major enterprises with easy-to-use communication solutions, such as the Lotus based SameTime. In the future the SameTime users will benefit from such additional functions as click-to-call and voice mailing.[11]

Lenovo and InfoPrint: recent divestitures and joint ventures

IBM's PC division was bought by Chinese company Lenovo on May 1, 2005 for $655 million in cash and $600 million in Lenovo stock. On January 25, 2007, Ricoh announced purchase of IBM Printing Systems Division for $725 million and investment in 3-year joint venture to form a new Ricoh subsidiary, InfoPrint Solutions Company; Ricoh will own a 51% share, and IBM will own a 49% share in InfoPrint.

Corporate culture of IBM

Big Blue

Big Blue is a nickname for IBM; several theories exist regarding its origin. One theory, substantiated by people who worked for IBM at the time, is that IBM field reps coined the term in the 1960s, referring to the color of the mainframes IBM installed in the 1960s and early 1970s. "All blue" was a term used to describe a loyal IBM customer, and business writers later picked up the term.[12][13] Another theory suggests that Big Blue simply refers to the Company's logo. A third theory suggests that Big Blue refers to a former company dress code that required many IBM employees to wear only white shirts and many wore blue suits.[14][12]

Sales

IBM has often been described as having a sales-centric or a sales-oriented business culture. Traditionally, many IBM executives and general managers are chosen from the sales force. The current CEO, Sam Palmisano, for example, joined the company as a salesman and, unusually for CEOs of major corporations, has no MBA or postgraduate qualification. Middle and top management are often enlisted to give direct support to salesmen when pitching sales to important customers.

Uniform

A dark (or gray) suit, white shirt, and a "sincere" tie[15] was the public uniform for IBM employees for most of the 20th century. During IBM's management transformation in the 1990s, CEO Lou Gerstner relaxed these codes, normalizing the dress and behavior of IBM employees to resemble their counterparts in other large technology companies.

Jams

In 2003, IBM embarked on an ambitious project to rewrite company values. Using its Jam technology, the company hosted Intranet-based online discussions on key business issues with 50,000 employees over 3 days. The discussions were analyzed by sophisticated text analysis software (eClassifier) to mine online comments for themes. As a result of the 2003 Jam, the company values were updated to reflect three modern business, marketplace and employee views: "Dedication to every client's success", "Innovation that matters - for our company and for the world", "Trust and personal responsibility in all relationships".[16]

In 2004, another Jam was conducted during which 52,000 employees exchanged best practices for 72 hours. They focused on finding actionable ideas to support implementation of the values previously identified. A new post-Jam Ratings event was developed to allow IBMers to select key ideas that support the values. The board of directors cited this Jam when awarding Palmisano a pay rise in the spring of 2005.[17]

In July and September 2006, Palmisano launched another jam called InnovationJam. InnovationJam was the largest online brainstorming session ever with more than 150,000 participants from 104 countries. The participants were IBM employees, members of IBM employees' families, universities, partners, and customers. InnovationJam was divided in two sessions (one in July and one in September) for 72 hours each and generated more than 46,000 ideas. In November 2006, IBM declared that they will invest $US 100 million in the 10 best ideas from InnovationJam.[18]

Open source

IBM has been influenced by the Open Source Initiative, and began supporting Linux in 1998.[19] The company invests billions of dollars in services and software based on Linux through the IBM Linux Technology Center, which includes over 300 Linux kernel developers.[20] IBM has also released code under different open-source licenses, such as the platform-independent software framework Eclipse (worth approximately US$40 million at the time of the donation)[21] and the Java-based relational database management system (RDBMS) Apache Derby. IBM's open source involvement has not been trouble-free, however (see SCO v. IBM).

Project Management Center of Excellence

The IBM Project Management Center of Excellence (PM COE) is a program dedicated to defining and executing the steps IBM must take to strengthen its project management capabilities. Functioning as IBM's think tank, the PM COE combines external industry trends and directions with IBM business, organizational, and geographic requirements and insight. Upon this foundation deliverables (such as project management policy, practices, methods, and tools) are developed.

All IBM Project Managers (PMs) on the Project Management track (dimension) must complete either accreditation or IBM certification. Junior PMs (Associate PM and Advisory PM) are accredited after self-assessment and authorization from supervisors. Senior PMs (Senior PM and Executive PM) must go through a stringent IBM certification process. By validating project managers' expertise and skills against consistent worldwide standards, certification helps maintain customer confidence in the high quality of IBM professionals and it recognizes IBM professionals for their skills and experience.

Becoming certified is public recognition of achieving a significant career milestone and demonstrating expertise in the profession. Prior to applying for IBM certification each individual must have:

  1. successfully passed PMI exam (i.e. be a certified PMP).
  2. verifiable documentation and approval for mastery/expertise in a well-defined set of PM skills.
  3. several years of PM experience spanning at least 3 verifiable projects within the immediate 5 years (including specific role, team size, and budget requirements).
  4. verifiable documentation and proof of at least one area of specialty.
  5. demonstrated the use of IBM's Worldwide Project Management Method (WWPMM).
  6. completed extensive classroom and online education and testing.

IBM PM Certification is a well-defined review and verification process with many intricate details. In its most simplified form, it broadly involves:

  1. Candidate preparing a detailed package with proof of above requirements.
  2. Package review, approval, and support by at least two levels of Senior Management.
  3. Package review and re-verification by PM COE expert.
  4. Personal interviews with the PM COE Certification board.
  5. Candidates whose experience, skills, knowledge and education are deemed valid, verifiable and accurate, are certified by the board as either Certified Senior Project Manager (CSPM) or Certified Executive Project Manager (CEPM).

IBM PM Certification is a significant achievement for any IBMer. It is a deliberately long process with multiple checkpoints designed to ensure the integrity, fairness and validity of the certification.

Corporate affairs

Diversity and workforce issues

IBM's efforts to promote workforce diversity and equal opportunity date back at least to World War I, when the company hired disabled veterans. IBM was the only technology company ranked in Working Mother magazine's Top 10 for 2004, and one of two technology companies in 2005 (the other company being Hewlett-Packard).[22][23]

The company has traditionally resisted labor union organizing, although unions represent some IBM workers outside the United States. Alliance@IBM, part of the Communications Workers of America, is trying to organize IBM in the U.S. with very little success.

In the 1990s, two major pension program changes, including a conversion to a cash balance plan, resulted in an employee class action lawsuit alleging age discrimination. IBM employees won the lawsuit and arrived at a partial settlement, although appeals are still underway. IBM also settled a major overtime class-action lawsuit in 2006.[24]

Historically IBM has had a good reputation of long-term staff retention with few large scale layoffs. In more recent years there have been a number of broad sweeping cuts to the workforce as IBM attempts to adapt to changing market conditions and a declining profit base. After posting weaker than expected revenues in the first quarter of 2005, IBM eliminated 14,500 positions from its workforce, predominantly in Europe. On June 8 2005, IBM Canada Ltd. eliminated approximately 700 positions. IBM projects these as part of a strategy to 'rebalance' its portfolio of professional skills & businesses. IBM India and other IBM offices in China, the Philippines and Costa Rica have been witnessing a recruitment boom and steady growth in number of employees.

On October 10 2005, IBM became the first major company in the world to formally commit to not using genetic information in its employment decisions. This came just a few months after IBM announced its support of the National Geographic Society's Genographic Project.

Gay rights

IBM provides employees' same-sex partners with benefits and provides an anti-discrimination clause. The Human Rights Campaign has consistently rated IBM at 100%, the highest score, on its index of gay-friendliness since 2003 (in 2002, the year it began compiling its report on major companies, IBM scored 86%).[25]

Logos

Logos designed in the 1970s tended to be sensitive to the technical limitations of photocopiers, which were then being widely deployed. A logo with large solid areas tended to be poorly copied by copiers in the 1970s, so companies preferred logos that avoided large solid areas. The 1972 IBM logo is an example of this tendency. With the advent of digital copiers in the mid-1980s this technical restriction had largely disappeared.

Board of directors

Current members of the board of directors of IBM are:

  • Brian De Palma (director) (1961). 660124: The Story of an IBM Card (film).
  • CPU Wars
  • Daisy Bell
  • Spencer Tracy, Katharine Hepburn (1957). Desk Set (film). Twentieth Century-Fox.
  • IBM Deep Blue Chess computer
  • Styx. (1983). "Mr Roboto"
  • Models. (1980). "Happy Birthday IBM" from the album Alphabravocharliedeltaechofoxtrotgolf.

See also

References and footnotes

  1. ^ a b "IBM: Company Overview". Reuters. Retrieved 2006-06-27.
  2. ^ a b "IBM 4Q06 Quarterly Earnings Report". IBM. Retrieved 2007-01-18.
  3. ^ http://domino.research.ibm.com/comm/research.nsf/pages/r.nanotech.html
  4. ^ "IBM maintains patent lead, moves to increase patent quality". 2006-01-10. {{cite web}}: Check date values in: |date= (help); Cite has empty unknown parameter: |1= (help)
  5. ^ "Worldwide IBM Research Locations". IBM. Retrieved 2006-06-21.
  6. ^ "Awards & Achievements". IBM. Retrieved 2006-07-01.
  7. ^ "IBM delivers Power-based chip for Microsoft Xbox 360 worldwide launch". IBM. 2005-10-25. {{cite web}}: Check date values in: |date= (help)
  8. ^ "Butterfly and IBM introduce first video game industry computing grid". IBM. 2002-05-09. {{cite web}}: Check date values in: |date= (help)
  9. ^ "IBM joins forces with game companies around the world to accelerate innovation". IBM. 2006-03-21. {{cite web}}: Check date values in: |date= (help)
  10. ^ IBM's New Open Client Offering to Cut Costs
  11. ^ IBM and Cisco: Attempt to Unite the Communication Software Developers
  12. ^ a b Postphenomenology: A Critical Companion to Ihde. State University of New York Press. 2006. p. 228. ISBN 0-7914-6787-2.
  13. ^ Logos, Letterheads & Business Cards: Design for Profit. Rotovision. 2004. p. 15. ISBN 2-88046-750-0.
  14. ^ The Essential Guide to Computing: The Story of Information Technology. Publisher: Prentice Hall PTR. p. 55. ISBN 0-13-019469-7. {{cite book}}: Cite has empty unknown parameter: |1= (help)
  15. ^ Smith, Paul Russell (1999). Strategic Marketing Communications: New Ways to Build and Integrate Communications. Kogan Page. p. 24. ISBN 0749429186.
  16. ^ Samuel J. Palmisano (2004-04-27). "Speeches". IBM. {{cite web}}: Check date values in: |date= (help)
  17. ^ "Leading Change When Business Is Good: The HBR Interview--Samuel J. Palmisano". Harvard Business Review. Harvard University Press. December 2004. {{cite journal}}: |access-date= requires |url= (help)
  18. ^ "IBM to invest $100M in new business areas". 2006-11-14.
  19. ^ "IBM launches biggest Linux lineup ever". IBM. 1999-03-02. Archived from the original on 1999-11-10. {{cite web}}: Check date values in: |date= (help)
  20. ^ Farrah Hamid (2006-05-24). "IBM invests in Brazil Linux Tech Center". LWN.net. {{cite web}}: Check date values in: |date= (help); Cite has empty unknown parameter: |1= (help)
  21. ^ "Interview: The Eclipse code donation". IBM. 2001-11-01. {{cite web}}: Check date values in: |date= (help)
  22. ^ "100 best companies for working mothers 2004". Working Mother Media, Inc. Archived from the original on 2004-10-17.
  23. ^ "100 best companies 2005". Working Mother Media, Inc. Retrieved 2006-06-26. {{cite web}}: Cite has empty unknown parameter: |1= (help)
  24. ^ "IBM settles overtime lawsuit for $65 million".
  25. ^ [1]
  26. ^ "IBM Archives: International Business Machines (1924-1946)." Accessed January 16, 2007.
  27. ^ "IBM Archives: IBM in transition (1947-1956)." Accessed January 16, 2007.
  28. ^ "IBM Archives: IBM continuity (1956-1972)." Accessed January 16, 2007.
  29. ^ "IBM Archives: IBM international recognition (1972- )." Accessed January 16, 2007.
  • Gerstner, Jr., Louis V. (2002). Who Says Elephants Can't Dance? HarperCollins. ISBN 0-00-715448-8.

Further reading

Robert Slater 1999 Saving Big Blue: IBM's Lou Gerstner McGraw Hill
Emerson W. Pugh 1996 Building IBM: Shaping an Industry Massachusetts Institute of Technology
Robert Heller 1994 The Fate of IBM Little Brown
Paul Carroll 1993 Big Blues: The Unmaking of IBM Crown Publishers
Roy A Bauer et al 1992 The Silverlake Project: Transformation at IBM (AS/400) Oxford University Press
Thomas J Watson Jr. 1990 Father, Son & Co: My Life at IBM and Beyond Bantam
David Mercer 1987 IBM: How the World's Most Successful Corporation is Managed [2] Kogan Page
Richard Thomas DeLamarter 1986 Big Blue: IBM's Use and Abuse of Power Macmillan
Buck Rodgers 1986 The IBM Way Harper & Row
Robert Sobel 1981 IBM: Colossus in Transition ISBN 0-8129-1000-1
Robert Sobel 1981 Thomas Watson, Sr.: IBM and the Computer Revolution (biography of Thomas J. Watson) ISBN 1-893122-82-4
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