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International Business Machines Corporation (IBM), incorporated on June 16, 1911, is an information technology (IT) company. IBM operates in five segments: Global Technology Services (GTS), Global Business Services (GBS), Software, Systems and Technology and Global Financing. GTS primarily provides IT infrastructure services and business process services. GBS provides professional services and application management services. Software consists primarily of middleware and operating systems software. Systems and Technology provides clients with business solutions requiring advanced computing power and storage capabilities. Global Financing invests in financing assets, leverages with debt and manages the associated risks. In May 2012, the Company acquired Varicent Software Incorporated. In May 2012, the Company acquired Vivisimo. In June 2012, the Company acquired Tealeaf Technology, Inc. On August 1, 2012, Toshiba Tec Corporation acquired the retail store solution business from IBM. In September 2012, it acquired Butterfly Software Ltd. In October 2012, it acquired Texas Memory Systems.
In April 2011, the Company acquired TRIRIGA, Inc. In October 2011, the Company acquired i2. In October 2011, the Company acquired Algorithmics. In October 2011, it acquired Q1 Labs Inc. In November 2011, the Company opened in Romania its European site for developing and testing IBM switch and networking hardware and software. In December 2011, the Company completed the acquisition of Curam Software Ltd. In January 9, 2012, the Company acquired Platform Computing. In January 11, 2012, the Company acquired Green Hat. In February 1, 2012, the Company acquired Emptoris Inc. In February 15, 2012, the Company acquired DemandTec Inc. In February 10, 2012, the Company completed the acquisition of Worklight. In March 2012, the Company opened a new branch office in Ludhiana, Punjab, India.
Global Technology Services (GTS)
GTC’s services include Strategic Outsourcing Services, Global Process Services, Integrated Technology Services, Maintenance and GTS Services Delivery. Its Strategic outsourcing Services include IT outsourcing services. IBM integrates its service management, technology and industry applications with new technologies, such as cloud computing, analytics and virtualization. Global Process Services ranges from standardized processing platforms and business process outsourcing, through transformational offerings, that deliver business results to clients through the change and/or operation of the client's business processes, applications and infrastructure, formerly business transformation outsourcing. Integrated Technology Services is a project-based portfolio of services. Maintenance is a line of support services from product maintenance through solution support to maintain the availability of clients' IT infrastructures. IBM's GTS Services Delivery is responsible for the worldwide delivery of IBM's technology- and process-based services.
Global Business Services (GBS)
IBM’s services in this segment include Consulting and Systems Integration, and Application Management Services. Consulting and Systems Integration delivers value to clients through consulting services for Strategy and Transformation; Application Innovation Services; Enterprise Applications and Business Analytics and Optimization. Application Management Services is engaged in application development, management, maintenance and support services for packaged software, as well as custom and applications. Value is delivered through advanced capabilities in areas, such as applications testing and modernization, cloud application security.
Middleware software enables clients to integrate systems, processes and applications across a standard software platform. IBM middleware is designed on open standards, making it easier to integrate disparate business applications, developed by different methods and implemented at different times. The sale of OTC software includes one year of subscription and support. Clients can also purchase ongoing subscription and support after the first year, which includes unspecified product upgrades and technical support.
WebSphere Software delivers capabilities that enable clients to integrate and manage business processes across their organizations. With a services-oriented architecture (SOA), businesses can link together their fragmented data and business processes to extract value from their existing technology. Smarter Commerce software enables interaction between companies, their customers and suppliers throughout the business cycle. Information Management Software enables clients to integrate, manage and use their information. Solutions include advanced database management, enterprise content management, information integration, data warehousing, performance management business analytics and intelligence. Tivoli Software helps clients manage their technology and business assets. With solutions for identity management, data security, storage management, cloud computing, enterprise mobility and the ability to provide automation and provisioning of the datacenter, Tivoli helps build the infrastructure needed to make systems from transportation to water, energy and telecommunications.
Lotus Software enables businesses to connect people and processes. Rational Software supports software development for both IT, as well as complex and embedded system solutions with a suite of Collaborative Lifecycle Management products. Security Systems Software provides clients with a single security intelligence platform. Operating Systems software manages the fundamental processes that make computers run.
Systems and Technology
Systems and Technology provides semiconductor technology, products and packaging solutions for IBM's own advanced technology needs and for external clients. Systems are 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 provide required infrastructure for business and institutions. Also, these systems form the foundation for IBM's integrated offerings, such as IBM Smart Analytics, IBM Netezza, IBM SmartCloud Entry and IBM BladeCenter for Cloud. IBM servers use both IBM and non-IBM microprocessor technology and operating systems. All IBM servers run Linux, a key open-source operating system.
Storage includes data storage products and solutions that allow clients to retain and manage volumes of digital information. These solutions address critical client requirements for information retention and archiving, security, compliance and storage optimization, including data de-duplication, availability and virtualization. The portfolio consists of a range of disk and tape storage systems and software, including the ultra-scalable disk storage system XIV. Retail Store Solutions are provider of solutions that include hardware, software and services for the retail industry, including point-of-sale and self-service systems and peripherals. Microelectronics include 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, software and services. Global Financing include Client Financing, Commercial Financing and Remanufacturing and Remarketing. Client Financing includes lease and loan financing to end users and internal clients for terms generally between one and seven years. Commercial Financing includes short-term inventory and accounts receivable financing to dealers and remarketers of IT products. Remanufacturing and Remarketing includes as equipment is returned at the conclusion of a lease transaction, these assets are refurbished and sold or leased to new or existing clients both externally and internally. Externally remarketed equipment revenue represents sales or leases to clients and resellers. Internally remarketed equipment revenue primarily represents used equipment that is sold or leased internally to Systems and Technology and Global Services. Systems and Technology may also sell the equipment that it purchases from Global Financing to external clients.
The Company competes with Accenture, Computer Sciences Corporation, Fujitsu, Hewlett-Packard Company (HP), CA, Inc., Microsoft Corporation and Oracle Corporation (Oracle), Cisco Systems, Inc. (Cisco), Dell, Inc. (Dell), EMC Corporation and General Electric Company.