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IBM Corporation (International Business Machines)

Self Description

October 2007:

  • Revenue: $91.4 billion, Net Income: $9.4 billion, Earnings per share: $6.06, Total Assets: $103.2 billion. (2006 year-end from continuing operations) IBM has 355,766 employees worldwide, and serves customers in 170 countries. (2006)
  • In 2006 IBM invested $6.1 billion in Research and Development.
  • IBM's net 2006 cash investment of $3.8 billion for 13 acquisitions — nine of them in key strategic areas of software — was up $2.3 billion year to year.
  • In January 2006, the United States Patent and Trademark Office reported that IBM earned more patents than any other company for the thirteenth consecutive year. In 2005, IBM earned 2,941 patents -- 1,100 more patents than any other company.
  • IBM is the world leader in IT services and consulting. With approximately 200,000 services professionals globally, the company's offerings include data center outsourcing, business transformation services, consulting, systems integration, application management services, infrastructure and system maintenance and Web hosting. (3/2007)
  • The world leader in server sales, IBM has improved its server market position by about 10 points since 2000. IBM leads in supercomputers, with 237 of the top 500 systems including number one, BlueGene/L, and four of the world's top five systems. (11/06)
  • Power Architecture microprocessors, custom designed and manufactured by IBM, run both the Nintendo Wii and Microsoft Xbox 360 game consoles. Sony PLAYSTATION 3 is powered by the Cell Broadband Engine, a nine-core Power Architecture chip manufactured by IBM and designed jointly by IBM, Sony, and Toshiba.
  • IBM procured $36 billion in goods and services globally in 2006. In October, 2006, IBM announced the relocation of its global procurement headquarters to Shenzhen, China as the company continues its strategy to draw more efficiently on its global capabilities and capitalize on emerging market opportunities.
  • Revenue: $91.4 billion, Net Income: $9.4 billion, Earnings per share: $6.06, Total Assets: $103.2 billion. (2006 year-end from continuing operations) IBM has 355,766 employees worldwide, and serves customers in 170 countries. (2006)

May 2004: "IBM is the world's largest information technology company, as well as the world's largest business and technology services provider ($36 billion);and the world's largest IT financier ($35 billion in assets). (3/03)"

Third-Party Descriptions

July 2011: 'An awkward silence ensued. The blue suits did not even confer among themselves. They just sat there, stonelike. Finally, the chief suit responded. “OK,” he said, “maybe you don’t infringe these seven patents. But we have 10,000 U.S. patents. Do you really want us to go back to Armonk [IBM headquarters in New York] and find seven patents you do infringe? Or do you want to make this easy and just pay us $20 million?” After a modest bit of negotiation, Sun cut IBM a check, and the blue suits went to the next company on their hit list.'

April 2010: "Consider the case of IBM versus TurboHercules [1], a tiny open source company trying to make a living selling mainframe emulator software. TurboHercules and its supporters claim that IBM is using its considerable patent muscle to stifle competition and browbeat the little company and, by extension, the open source community. IBM sees TuboHercules as a knockoff artist seeking to cash in on billions of dollars of Big Blue R&D and characterizes it as a Microsoft proxy."

October 2009: "The Department of Justice has started a preliminary investigation into whether I.B.M. abused its monopoly position in the market for the mainframe computers, which remain vital to many of the world’s largest businesses."

July 2009: "For example, a system developed by Singapore's research agency lets advertising screens detect the genders of passers-by: it will soon be able to tell how old they are, too. IBM has worked on systems that can scan a crowd and estimate numbers, demographics, and where people are looking."

June 2009: 'With the explosion of low-cost chips, from Intel's Atom processor to low-power Wi-Fi sensors, just about everything is "getting smart" these days. There are known environmental benefits to this kind of cheap-and-easy digital intelligence, many of them heavily promoted by IBM as part of its Smarter Planet initiative. There's the smart grid, of course, which adds data-rich intelligence to the energy system, but there's also smart water, smart transportation (including rail, electric vehicles, and traffic), and even smart garbage. It's what Intel regularly describes as the "2%, 98%" rule—that operating info tech contributes only 2% of global carbon emissions and can be used to minimize the other 98%.'

April 2009: 'I.B.M. plans to announce Monday that it is in the final stages of completing a computer program to compete against human “Jeopardy!” contestants. If the program beats the humans, the field of artificial intelligence will have made a leap forward.'

April 2009: 'IBM (IBM) is feeling the skills mismatch problem as it changes its focus to services and data analysis. On Apr. 28, Big Blue announced that it plans to add 4,000 specialists in what it calls "analytics." It hopes to get as many as possible by retraining, using some of its $1 billion-a-year training budget. Consultants who install software might learn to help companies spot patterns in their data to improve efficiency. But IBM is still laying off thousands of people who have no place in the new company. "It's really easy to find people that are 50% of what you are looking for," says Jim Spohrer, director of university programs at IBM. "It's really hard to find people that are 90% of what you are looking for. This is a real dilemma." DESCENDING THE ECONOMIC LADDER'

June 2009: 'One measure of how badly the patent system needs reform: IBM, for years the company that's been assigned the greatest number of patents now says too many patents are being granted. IBM is also the leader in "business method" patents that the court could now invalidate. Several justices have doubted that software can be protected by patents. Industries from high-tech to biotech and financial services are watching the case of Bilski v. Doll with intense interest.'

March 2009: "I.B.M. maintains that it bought Platform for the company’s technology and talent, not to kill a competitive product."

February 2006: 'IBM won't reveal how much it spends on analyst services. John Mihalec, IBM's VP of analyst relations, acknowledges in an E-mail interview that research sponsored by vendors and conducted by analyst firms doesn't always sit well with technology buyers, particularly if they perceive that the research is trying to manipulate purchasing decisions. IBM stipulates that any research it commissions be distributed externally only if it contains "funded by IBM" on the cover page, Mihalec says.'

October 2007: "A divided federal appeals court ruled yesterday that a human rights lawsuit filed against 50 major corporations that did business in South Africa under apartheid should be revived and reconsidered by the lower court that dismissed it.... The plaintiffs sued the corporations — among them Citigroup, General Electric, E. I. DuPont de Nemours, I.B.M., General Motors, Shell Oil and ExxonMobil — under the Alien Tort Claims Act..."

August 2007: In the 102-page ruling, the judge, Dale A. Kimball, also said Novell could force SCO to abandon its claims against I.B.M., which SCO had sued. Judge Kimball’s decision in favor of Novell could almost entirely undermine SCO’s 2003 lawsuit against I.B.M.

July 2007: So I.B.M. has moved aggressively to tap the global labor pool, and it is increasingly using software to automate as much traditional services work as possible. Today, I.B.M. employs 53,000 people in India, up from 3,000 in 2002; in India, the salaries for computer programmers are still about a third of those in the United States. Over the same span, the company’s work force in the United States declined slightly, to 127,000 at the end of last year.

June 2007: As part of a $12.5 billion stock repurchase, I.B.M. used a foreign subsidiary to buy back shares through foreign exchanges. The subsidiary then used the shares to pay its corporate parent in America for goods and services.

October 2005: But the downside of giving more to junior employees is that senior employees get less. When I.B.M. converted, it reduced the rate at which some employees of long standing would accrue benefits, touching off a firestorm. The company was sued, I.B.M. lost and the legal status of similar plans remains in doubt. The pension industry has been lobbying Congress to clarify the status of existing cash-balance plans, but neither the administration nor anyone on Capitol Hill has done so.


RoleNameTypeLast Updated
Opponent (past or present) Amdahl Organization May 3, 2010
Founder/Co-Founder of Computer Ethics Institute (CEI) Organization Jan 14, 2011
Status/Name Change from Informix Software Organization Jul 27, 2006
Status/Name Change to Lenovo Group Organization Feb 11, 2008
Status/Name Change from Lotus Organization Feb 27, 2008
Owner of (partial or full, past or present) Object Technology Licensing Corporation Organization Mar 3, 2010
Founder/Co-Founder of Open Invention Network (OIN) Organization May 14, 2007
Owner of (partial or full, past or present) Taligent Organization Mar 3, 2010
Opponent (past or present) TurboHercules Organization Apr 21, 2010
Organization Executive (past or present) Erich Bloch Person Apr 4, 2004
Cooperation (past or present) Opponent (past or present) Roger Bowler Person Apr 21, 2010
Employee/Freelancer/Contractor (past or present) Prof. Lynn Conway Ph.D. Person Aug 24, 2007
Organization Head/Leader (past or present) Louis V. Gerstner Jr. Person Oct 22, 2007
Organization Executive (past or present) Ray Ozzie Person Feb 27, 2008
Employee/Freelancer/Contractor (past or present) Savio Rodrigues Person May 28, 2010
Employee/Freelancer/Contractor (past or present) Mark Russinovich Ph.D. Person Dec 16, 2005
Employee/Freelancer/Contractor (past or present) Alan F. Shugart Person Jul 27, 2006
Organization Executive (past or present) John W. Thompson Person Nov 27, 2005
Employee/Freelancer/Contractor (past or present) Gov. Scott Walker Person Jan 25, 2011
Employee/Freelancer/Contractor (past or present) Dan J. Warmenhoven Person Dec 27, 2008
Organization Executive (past or present) Phil White Person Jul 27, 2006

Articles and Resources

59 Articles and Resources. Go to:  [Previous 20] [Next 19]

Date Resource Read it at:
Nov 08, 2008 Apple Exec Hired From IBM Ordered to Stop Work

QUOTE: IBM contends that Apple will use Papermaster and its stake in P.A. Semi "to design microprocessors for incorporation in a variety of electronic devices, including handheld devices."....Papermaster's lawyers contend the IBM focuses on large enterprise applications for businesses while Apple focuses on consumer electronics.

PC Magazine
May 13, 2008 Supreme Court Won’t Hear Apartheid Lawsuit

QUOTE: [Supreme Court] announced that, because of some 21st-century conflicts of interest, it was unable to consider a lawsuit based on an 18th-century law and involving the bygone 20th-century apartheid era in South Africa.

New York Times
Feb 01, 2008 Refurb Madness

ABSTRACT: A series of consumer advice articles/sidebars explaining how the Refurbished PC industry works and providing a wealth of tips, questions to ask, and overviews of the leading manufacturers' policies.

PC Magazine
Jan 13, 2008 Two Views of Innovation, Colliding in Washington

QUOTE: changing the nation’s patent laws, Congress runs the risk of throttling the little guy — the Stephen Wozniaks and the Steven Jobses — who strike out from their garages with novel ideas that change the world. On the other hand, consumers have clearly benefited from the ability of large technology companies like Intel and Microsoft to use their prodigious market power to drive down prices.

New York Times
Oct 13, 2007 Rights Case Against 50 Companies Is Reinstated

QUOTE: A divided federal appeals court ruled yesterday that a human rights lawsuit filed against 50 major corporations that did business in South Africa under apartheid should be revived and reconsidered by the lower court that dismissed it.

New York Times
Sep 07, 2007 A $50 Billion Windfall from the GSA

QUOTE: The U.S. General Services Administration has arrived at a solution to streamline the process by which it awards technology contracts. But to outsiders, it looks like an insider game.

Aug 11, 2007 Judge Says Unix Copyrights Rightfully Belong to Novell

QUOTE: a federal district court judge in Utah ruled Friday afternoon that Novell, not the SCO Group, is the rightful owner of the copyrights covering the Unix operating system....The ruling could remove the cloud over open-source software like Linux...

New York Times
Jul 05, 2007 At I.B.M., a Smarter Way to Outsource

QUOTE: The debate continues over how much skilled work in the vast service sector of the American economy can migrate offshore to lower-cost nations like India. Estimates of the number of services jobs potentially at risk… range widely from a few million to more than 40 million, which is about a third of total employment in services.

New York Times
Jun 07, 2007 I.R.S. Moves to Close Tax Shelter Shortly After I.B.M. Uses It to Save $1.6 Billion

QUOTE: For the second time in 12 months, the government has moved to block a tax shelter that had been aimed at converting billions of dollars of corporate profits, on which taxes have yet to be paid, into profits that will never be taxed. The move by the Internal Revenue Service came two days after International Business Machines said that it used the technique to avoid paying $1.6 billion in income taxes.

New York Times
Jun 06, 2007 Senators seek to bar H-1B use by firms that lay off workers

QUOTE: The amendment would prohibit companies that have announced mass layoffs from receiving any new visas unless they could prove that overall employment would not be reduced by these layoffs.

May 14, 2007 Microsoft takes on the free world: Microsoft claims that free software like Linux, which runs a big chunk of corporate America, violates 235 of its patents. It wants royalties...

QUOTE: But now there's a shadow hanging over Linux and other free software, and it's being cast by Microsoft. The Redmond behemoth asserts that one reason free software is of such high quality is that it violates more than 200 of Microsoft's patents. And as a mature company facing unfavorable market trends and fearsome competitors like Google (Charts, Fortune 500), Microsoft is pulling no punches: It wants royalties. If the company gets its way, free software won't be free anymore.

Mar 28, 2007 Let's Make a (Bad) Deal

QUOTE: Unfortunately, many American companies are taking a whack at both the pensions and the plans of their employees by converting retirement benefits into schemes known as "cash-balance plans."

Smart Money
Mar 26, 2007 Mr. Gates, tear down this wall: Fruitless persecution of open source achieves nothing but harm

QUOTE: A few giant vendors produce key software for the majority of computers in use today. But at the opposite end of the spectrum, independent developers and hobbyists have made significant contributions in their own right. In between are countless other ISVs of varying sizes. And all that code is constantly intermingling, moving hand to hand, each piece of software complementing the others.

Mar 05, 2007 The Dangers of DNA Testing: Its increasing use opens a Pandora's Box of privacy issues and is unfairly skewed toward certain groups

QUOTE: As Hamlet said, "Aye, there's the rub." Once DNA is collected and stored, future technologies can be retroactively applied against the genetic material, causing unforeseen privacy problems for many years to come.

Sep 01, 2006 California Plan to Cut Gases Splits Industry

QUOTE: While high-technology companies have lined up behind the move, arguing that it will put California at the forefront of alternative energy development, most of those representing basic industries contend that it will retard the economy, force energy-intensive businesses out of state and increase costs for all Californians.

New York Times
Aug 11, 2006 Panel’s Report Urges Higher Education Shake-Up

QUOTE: A federal commission approved a final report on Thursday that urges a broad shake-up of American higher education. It calls for public universities to measure learning with standardized tests, federal monitoring of college quality and sweeping changes in financial aid....Ms. Spellings urged the group to examine access, affordability and accountability, to determine whether colleges were turning out students qualified to compete in the global economy. The answer in too many cases, the panel said, is that they are not.

New York Times
Aug 08, 2006 Court Rules for I.B.M. on Pension

QUOTE: A three-judge appellate panel ruled yesterday that I.B.M. did not discriminate against its older workers when it switched retirement plans in 1999, a long-awaited decision that could help shelter hundreds of companies from possible age discrimination suits.

New York Times
Aug 07, 2006 Data, Data Everywhere

QUOTE: with the rise of XML and Web services, this data is not only in databases, but in file systems, applications and a wide range of personal computing devices. This is making it more difficult to establish a data warehouse where the "one truth" concerning the state of a business process can be found, because data that has a material impact on the results of that business process is basically everywhere.

Aug 06, 2006 Her No. 1 Problem

QUOTE: Women are severely underrepresented in top corporate leadership positions...Lack of access to informal networks inside the company, lack of role models and sex-based stereotyping.

Washington Post
Jul 21, 2006 SCO Claims IBM Tampered With Crucial Trial Evidence

QUOTE: IBM directed programmers to delete from their computers source code that could be used as evidence against the company in its ongoing legal battle with the SCO Group, SCO claims in a new court filing.


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