- "Several years ago, we saw change coming.
Value was shifting in the IT industry, driven by the rising tide of global integration, a new computing paradigm and new client needs. These shifts meant the world was becoming not just smaller and “flatter,” but also smarter.
- We remixed our businesses in order to move to the emerging higher-value spaces.
IBM has divested commoditizing businesses like personal computers, and strengthened its position through strategic investments and acquisitions in higher-value segments like business intelligence and analytics, virtualizationand green solutions.
From 2000 to 2008 we acquired more than100 companies to complement and scale our portfolioof products and offerings. This has changed ourbusiness mix toward higher-value, more profitable segments of the industry.
- We became a globally integrated enterprise in order to capture the best growth opportunities and improve IBM’s profitability.
IBM operates in more than 170 countries and enjoys an increasingly broad-based geographic reach.Our non-U.S. operations generated approximately65 percent of IBM’s revenue in 2008. IBM’s Growth Markets unit, which was established in 2008,grew 10 percent last year, and made up 18 percentof our revenues. Revenue increased 18 percent(15 percent in local currency) in Brazil, Russia, India and China.
- As a result, IBM is a higher-performing enterprise today than it was a decade ago.
Our business model is more aligned with our clients’ needsand generates better financial results.
- We have therefore been able to invest in future sources of growth and provide record return to investors…
…while continuing to invest in R&D—more than $50 billion from 2000 to 2008.
- This gives us confidence that we are entering the current economic environment from a position of strength…
In 2008 we made progress toward our 2010 objectivesby growing earnings per share 24 percent. And withthis strong 2008 performance, we are clearly ahead of pace on our road map to $10–$11 of earnings per share.
- …and that we will emerge from it even stronger, thanks to our long-term fundamentals and our agenda for a smarter planet.
All around the world, businesses, governmentsand institutions are investing to reduce costs,drive innovation and transform their infrastructure. The economic downturn has intensified this trend,as leaders seek not simply to repair what isbroken, but to prepare for a 21st Century economy.
Many of their key priorities are in areas whereIBM has leading solutions—such as smarter utility grids, traffic, healthcare, financial systems,telecommunications and cities. We are aggressively pursuing this transformational, global opportunity."
It is good to see that IBM continues to proceed with long-term investments during these tough times!