About IBM

About the Business of Technology*

IBM uses advanced information technology to provide customer solutions. The company operates primarily in a single industry using several segments that create value by offering a variety of solutions that include, either singularly or in some combination, technologies, systems, products, services, software and financing. Organizationally, the company's major operations comprise two hardware product segments-Technology and Enterprise Systems; a Global Services segment; a Software segment; a Global Financing segment and an Enterprise Investments segment. The segments are determined based on several factors, including customer base, homogeneity of products, technology and delivery channels.

The Technology Segment produces peripheral equipment for use in general-purpose computer systems, including storage devices, networking components and display devices. In addition, the segment provides components such as semiconductors and High-Density Drives for use in the company's products and for sale to original equipment manufacturers (OEM). Major business units in this segment include Microelectronics and Storage Technology.

The Enterprise Systems Segments produces the company's disk storage products, which include the Enterprise Storage Server known as "Shark," tape subsystems and the company's storage area networking program, and networking products. The segment also produces powerful multi-purpose computer servers that operate many open-network-based applications simultaneously for multiple users. They perform high-volume transaction processing and serve data to personal systems and other end-user devices. The servers are the engines behind the bulk of electronic business transactions, including e-commerce. Brands include the zSeries mainframe servers, the heart of the e-business infrastructure for mission-critical data and transaction processing, the IBM pSeries servers, the most powerful technologically advanced UNIX servers, and the IBM iSeries mid-range servers, integrated mid-range business servers that run sophisticated business applications.

The Personal & Printing Systems business unit produces general-purpose computer systems, advanced printing systems, retail point-of-sale solutions and some system and consumer software that operate applications for use by one user at a time (personal computer clients) or as servers. Major brands include the Aptiva home personal computers, NetVista and ThinkPad mobile systems.

The Global Services Segment is the world's largest information technology (I/T) services provider, supporting computer hardware and software products and providing professional services to help customers of all sizes realize the full value of information technology. The segment provides value through three primary lines of business: Strategic Outsourcing Services, Business Innovation Services and Integrated Technology Services. Strategic Outsourcing Services creates business value through long-term strategic partnerships with customers by taking on responsibility for their processes and systems.

Business Innovation Services provides business/industry consulting and end-to-end e-business implementation of such offerings as Supply Chain Management, Customer Relationship Management, Enterprise Resource Planning and Business Intelligence.

Integrated Technology Services offers customers a single I/T partner to manage multi-vendor I/T systems' complexity in today's e-business environment including such traditional offerings as Product Support, Business Recovery Services, Site and Connectivity Services, and Systems Management and Networking Services. Learning Services supports the three primary lines of business and helps customers design, develop and deploy curricula to educate their employees. The Global Services segment is uniquely suited to integrate the full range of the company's and key industry participants' capabilities, including hardware, software, services and research. The Software Segment delivers operating systems for the company's servers and e-business enabling software (middleware) for IBM and non-IBM platforms.

The segment's business offerings align with key customer opportunity areas-transformation and integration, leveraging information, organizational effectiveness and managing technology. In addition to its own development, product and marketing effort, the segment supports more than 35,000 Independent Software Vendors to ensure that the company's software and hardware offerings are included in those partners' solutions.

The Global Financing Segment is the world's largest provider of financing services for I/T. The segment provides lease and loan financing that enables the company's customers to acquire complete I/T and e-business solutions-hardware, software and services-provided by the company and its business partners. Global Financing, as a reliable source of capital for the distribution channel, also provides the company's business partners with customized commercial financing for inventory, accounts receivable and term loans, helping them manage their cash flow, invest in infrastructure and grow their business.

The Enterprise Investments Segment provides industry-specific information technology solutions, supporting the hardware, software and services segments of the company. The segment develops unique products designed to meet specific marketplace requirements and to complement the company's overall portfolio of products.

* From IBM's Year 200 Annual Report

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