2017 IBM Annual Report

Dear IBM Investor:

The businesses of the world are changing the way they work. We have prepared your company for this moment.

This is smart at work.

It’s a business remaking itself on platforms infused with digital intelligence. An enterprise whose operations and processes are designed to learn with intelligent systems. A company of experts whose knowledge is augmented by systems that learn.

This is smarter business—a new era, brought to the world by a new IBM.

Collage of various business applications

IBM Cloud

The platform for smarter businesses

Many types of clouds exist, but only the IBM Cloud is built for the enterprise, is able to handle all kinds of data and applications, and provides seamless integration of artificial intelligence, world-leading security and the ability to evolve over time.

To support innovation, the public cloud allows businesses to quickly create, deploy and manage new cloud-native apps; they can also easily isolate specific computing workloads to ensure performance and security. IBM’s private cloud offerings let leading enterprises re-architect critical applications for the cloud, while maintaining regulatory compliance and security on their own premises.

The IBM Cloud team

IBMers deliver the IBM Cloud’s broad array of services and expertise.

They help the world’s smarter businesses transform their processes, assimilate new technologies and capabilities, and pivot quickly to new market opportunities.

AI to surface new insights and augment decision-making

Vivian Lee,
IBM Watson Development

Cloud-based services to manage IT complexity and capitalize on the speed of innovation

Twannia Arnold,
Global Technology Services

Security to help protect all data and ensure regulatory compliance

Cameron Will,
IBM Security

Data Science Experience to help data scientists learn, create and collaborate in a single workspace

Armand Ruiz Gabernet,
Watson Machine Learning

The Internet of Things to capture data and insights from the physical world

Lisa Seacat DeLuca,
IBM Watson IoT

NVIDIA GPUs to boost artificial intelligence and deep-learning workloads

Glen Wiedemeier,
IBM Systems

Video streaming to deliver high-quality content to audiences of any size, anywhere

Arpad Kun,
IBM Cloud Video

Quantum computing to tackle business and scientific problems that are intractable with classical computers

Jerry Chow,
IBM Research

Blockchain to digitize transactions through a highly secured, shared and replicated ledger

Noi Sukaviriya,
IBM Blockchain Solutions

VMware implementation to easily deploy workloads from on-premises to the cloud

Camilla Sharpe,
Global Technology Services

SAP implementation to bring optimized business operations to the cloud

Bridget Jones,
Global Business Services

Workday implementation for workforce insight and HR management

Mickey Patel,
Global Business Services

Storage to provide consistent, highly secure and fast data delivery

Sam Werner,
IBM Systems

Developer tools to rapidly build, deploy and manage cloud services

Remko De Knikker,
IBM Industry Platforms

A single, integrated architecture for all the needs of smarter businesses

IBM Cloud is the most flexible and intelligent cloud for business—a fully managed, unified platform built on secure containers across public and private clouds, with 170+ services for developers to build, deploy and manage cloud-native applications, as well as the capacity to easily integrate new products and offerings.

Interior of IBM z14 mainframe

z14 pervasively encrypts data at scale, all the time.

The z14, the world’s most powerful transaction system, is the first that can encrypt every piece of data at the silicon level, without requiring changes to applications or downtime. Open and connected in the cloud, the z14 is capable of running 12.5 billion fully encrypted transactions per day.

Exploded view of IBM POWER9 server

POWER9 is built for data-intensive workloads, including AI and scientific discovery.

POWER9 systems and software cut deep learning training times by at least 4x, unleashing mission-critical insights from massive data sets. POWER9 servers with NVIDIA GPUs substantially boost AI accuracy and accelerate the performance of AI frameworks.

IBM's prototype 50 qubit quantum computer

Quantum computing will solve the previously unsolvable.

Quantum computers encode information in quantum bits, or qubits, which can represent tremendous amounts of data, and can interact with one another in ways classical bit-based computers cannot. They may help solve problems that require exploring exponential possibilities—like drug discovery and financial risk optimization. Available via the IBM Cloud, the IBM Q Experience is being used by 75,000+ early adopters who are exploring its implications for science and business.

Two engineers at a cloud data center

IBM Cloud Private runs on a company’s own infrastructure.

This scalable cloud platform offers the benefits of the public cloud but gives customers the power to address proprietary data, regulatory requirements and security threats on-premises.

IBM Services and Solutions

Making smarter real, industry by industry

The leading businesses and institutions of the world are going on offense, moving from the disrupted to the disruptors. To do so, they rely on the deep industry and technology expertise of IBM Services and solutions professionals and consultants around the world. These IBMers—experts in industries ranging from healthcare, to financial services, to retail and more—help organizations transform at scale and become smarter.

Stack of mangoes

Walmart uses blockchain to provide traceability from “farm to fork” and to improve transparency, efficiency and food safety.

Two builders review documents next to a cement mixer

CEMEX’s digital transformation provides its customers with real-time tracking and analytics that help them make better decisions and improve their supply chains.

Stock market graph

London Stock Exchange Group and the Santiago Stock Exchange are building blockchain solutions to take cost and complexity out of trading and settlement.

Blue shipping container in a stack of red containers

Maersk’s blockchain platform eliminates millions of pieces of paperwork, reduces fraud and increases transparency for global shipping.

View of front nose of Boeing 787

Japan Airlines’ custom mobile app frees up engineers’ time, improves its aircraft quality and on-time arrivals and has eliminated 3.3 million paper documents in one year.

Gold nugget

Goldcorp is using AI to sift through drilling logs, geological surveys and other data to pinpoint where to explore next.

Red foam finger

Mercedes-Benz Stadium’s technology infrastructure and mobile apps create personalized game-day experiences for fans in Atlanta.

ABB's YuMi robot

ABB applies artificial intelligence and the Internet of Things on factory floors to quickly identify defects not always picked up by the naked eye.

Medical researcher looking through a white microscope

Toronto Western Hospital’s Movement Disorders Clinic has reviewed thousands of drugs to identify medications that might be repurposed for Parkinson’s disease.

Adult and young grey rhinos in a grassy landscape

Welgevonden Game Reserve uses the Internet of Things and predictive analytics to track animal movements and protect endangered rhinos.

Shipping cranes at the Port of Rotterdam

The Port of Rotterdam is fully digitizing—with artificial intelligence and IoT—to maximize cargo loads and speed shipping traffic.

Pile of shredded pieces of blue plastic waste

Plastic Bank’s blockchain-based system turns trust into sustainability, as recyclers in developing countries earn credits, helping to alleviate poverty and reduce ocean waste.

IBM Watson

Empowering professionals
with AI

IBM Watson’s enterprise-strength artificial intelligence is transforming the way people work in nearly every industry. It helps organizations derive insight from complex and unstructured information. And it allows professionals to scale their expertise and focus their efforts on higher-value work.


We trained Watson Virtual Agent in Brazilian Portuguese so it can answer customers’ questions in seconds. ”
Jacqueline Pessoa Ferreira


Watson speeds up how we find important patterns—and ones we didn’t know to look for. ”
Pat Doyle


We trained Watson Virtual Agent in Brazilian Portuguese so it can answer customers’ questions in seconds. ”
Jacqueline Pessoa Ferreira


Watson speeds up how we find important patterns—and ones we didn’t know to look for. ”
Pat Doyle

Jacqueline Pessoa Ferreira, Digital Channels Analyst and Trainer at Banco Bradesco, sits in front of a view of Sao Paulo

Jacqueline Pessoa Ferreira,
Digital Channels Analyst and Trainer, Banco Bradesco

Customer service representatives at Banco Bradesco use Watson Virtual Agent to answer questions quickly, which boosts customer satisfaction.


We trained Watson Virtual Agent in Brazilian Portuguese so it can answer customers’ questions in seconds. ”

Jacqueline Pessoa Ferreira

Lisnerva Nuez, a kindergarten teacher, sitting down in an elementary classroom

Lisnerva Nuez,
Kindergarten Teacher, New York City

Elementary school instructors are using Teacher Advisor With Watson to tailor high-quality instructional resources to the specific needs of their students.

Carlos Aguilera, a Security Expert at IBM, stands in an IBM security operations center

Carlos Aguilera,
Security Expert, IBM

Working with Watson for Cyber Security allows experts to identify threats up to 60 times faster than traditional methods.

Pat Doyle, Supply Chain Expert at Kraft Heinz, stands in front of an agile working team

Pat Doyle,
Supply Chain Expert, Kraft Heinz Company

AI, machine learning and analytics are allowing Kraft Heinz experts to evaluate thousands of variables in real time and address previously unsolvable problems, leading to reductions in food loss.


Watson speeds up how we find important patterns—and ones we didn’t know to look for. ”

Pat Doyle

Aleksi Seppänen, a Data Scientist at KONE, with a bright, interactive screen displaying real-time information in the background

Aleksi Seppänen,
Data Scientist, KONE

Watson helps KONE’s data scientists provide technicians with real-time information from elevators and escalators around the world, to predict maintenance issues and help keep people moving.

Gloria Bridges, a Tax Professional at H&R Block, stands in front of a legal library

Gloria Bridges,
Tax Professional, H&R Block

Trained by H&R Block on millions of customer conversations and returns, Watson helps tax pros engage with their clients in new ways.

A smarter future does not belong to the few. It belongs to all of us.

The coming era offers vast new opportunities to change the way the world works—but it will take more than technology and more than business. At IBM we are working to build new levels of trust and new forms of collaboration across all sectors of society.

Gabriel Rosa and Maria Arbusto talk in a café

Gabriel Rosa, a 2015 graduate of P‑TECH, now works in IBM’s Digital Business Group, following an internship guided by Maria Arbusto, who still acts as his mentor.

Gabriel Rosa (left), Front-End Engineer, and Maria Arbusto, Director, Marketing

Data and AI: Only an economy where data is protected will produce a society where data is trusted. In 2017, IBM issued principles for AI and for Data Responsibility, ensuring that wherever our cognitive technology is used, we will be transparent about how it was trained and clear about who owns its data and insights.

Jobs: To build the “new collar” skills required for the future of work, we are pioneering new models of education, including P‑TECH, a six-year high school and community college program that enables students to earn an associate degree. From its roots in 2010 with one school in Brooklyn, New York, P‑TECH is on track to serve more than 60,000 students on four continents, and build upon partnerships with more than 430 other companies.

Workforce inclusion: New technology can lift everyone up—and it must. We have led in inclusion for more than a century, hiring our first women and African American employees in 1899. And in 2005, IBM became the first company to protect employees’ genetics privacy. We are committed to extending that legacy into the future.

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