3. IBM Software Group
Gold Coast
Sydney
Canberra
Singapore
Perth
Yamato
India
Bangalore
Pune
Hyderabad
Gurgaon
China
Beijing, Shanghai
Taiwan
Cairo
Dublin
Haifa
Portland
Seattle
Menlo Park
Burlingame
Cupertino
San Francisco
SVL / San Jose
Agoura Hill
Irvine
Oakland
Santa Cruz
Las Vegas
Canada
Toronto, Ottawa ,Montreal, Victoria
Rome
Paris
Staines
Hursley
Boeblingen
Krakow
Rochester
Boulder
Denver
Lenexa
Tucson
Phoenix
Austin
Pittsburgh
Bethesda
Raleigh
Lexington, KY
Charlotte
Boca Raton
Portsmouth
Lexington, MA
Westboro
Westford
Cambridge
Poughkeepsie
44,000 Employees Worldwide
57 Major* R&D Locations
• 22,000 Developers
Major* R&D Locations
* 163 Additional Smaller R&D Locations
4. We Are a Technology Company
2006 Development Spending
Software Products
Software Patents
Development
IBM Fellows
Distinguished Engineers
Senior Technical Staff Members
Field Technical
Software Certified IT Architects
Certified IT Specialists
Lab Services
Lab Person Years on Customer Engagements
$2.6B
13,206 (600 Product Families)
12,500+
22,000
11
77
257
4,000
350
1,644
3,300
4,000
5. Information
Management
Software
Development
Servers Storage
Linux Unix Windows OS/400 z/OS
Rational
Systems
Management
& Security
TivoliDB2
Transactions,
Messaging &
Integration
WebSphere
Human
Interaction &
Collaboration
Lotus
Evolution Towards Middleware
Processes
Systems
Environment
Applications
Middleware
Environment
6. Linux Unix Windows OS/400 z/OS
Servers Storage
Processes
Systems
Environment
Rational
Applications
Manage BuildRun
Rational
Middleware
Environment
Lotus WebSphere DB2 Tivoli
Middleware Platform – Componentization / Integration
7. IBM is the #1
commercial supporter
Open Operating
System
Choice Includes Linux
IBM contributed
significant technology
to J2EE and helped
form the Apache
Software Foundation
Open Application
Server
J2EE and Apache
IBM led or co-led the
creation of SOAP.
WSDL, UDDI, WS-
Security, BPEL4WS
…
Open Application
Integration
Web Services
IBM donated $40M of
initial technologyOpen Development
Integration Platform
Eclipse
The Open Platform Approach
8. Middleware Opportunity
IBM Ranked #1 or #2 in All Middleware Segments
Development Tools
and Languages
$10B
3% CGR
Systems Management
$26B
6% CGR
Messaging, Collaboration
and e-Learning
$6B
7% CGR
Information Management
$29B
6% CGR
Transaction Management
and Integration
$12B
4% CGR
2006 Opportunity: $84B
CGR 2006 - 2009: 5%
Source: GMV 1H06 / IBM analysis based on Industry Reports / Market Research, 1/06
9. High Growth Product Segments
’06 – ’09
CGR
IBM
Position
Portals and Personalization
Mobile Middleware
Content Management
Information Integration
Storage Management
Relational Database and Tools
AD Lifecycle Management Tools
Security / Identity Management
12%
12%
10%
10%
10%
8%
8%
6%
5%
5%
2006 Middleware
Opportunity = $ 84 B
’06 – ’09 CGR = 5%
41% 59%
Advanced Collaboration
Integration Server
Source: IBM analysis based on Industry Reports / Market Research, 12/05
Investing in High Growth Product Segments
#1
#1
#1
#1
#3
#1
#2
#2
#1
#1
10. Acquisitions Complement Our Organic Growth Strategy
High profile
entry
Leverage IBM
strengths
Complementary
technology buys
Gain time to
market
Leverage IBM
channels
Significant
revenue
streams
Leverage
install base
Achieve cost
and expense
synergies
Market leaders in
growth segments
Strong ecosystems
Large customer
install bases
Command premium
valuations
+ + +
Complementary
Point Products
Bold Market
Entry
Market
Leadership
Opportunistic
Consolidations
11. Acquisitions Complement Our Organic Growth Strategy
High profile
entry
Leverage IBM
strengths
Complementary
technology buys
Gain time to
market
Leverage IBM
channels
Significant
revenue
streams
Leverage
install base
Achieve cost
and expense
synergies
Market leaders in
growth segments
Strong ecosystems
Large customer
install bases
Command premium
valuations
+ + +
Complementary
Point Products
Bold Market
Entry
Market
Leadership
Opportunistic
Consolidations
Tivoli
Rational
Informix
Candle
Ascential
CrossWorlds
Trigo
.....
Lotus
12. Information
Management
Software
Development
Servers Storage
Linux Unix Windows OS/400
z/OS
Rational
Systems
Management
& Security
TivoliDB2
Transactions,
Messaging &
Integration
WebSphere
Human
Interaction &
Collaboration
Lotus
Growth Through Acquisitions
Processes
Systems
Environment
Applications
Middleware
Environment
Tivoli Collation
Unison Micromuse
DBMX
Dascom
Accessible Software
SANergy
Access360
Metamerge
TrelliSoft
Think Dynamics
Candle
Cyanea
Isogon
CIMS Lab
OTI
OpenOrders
CrossWorlds
Holosofx
Gluecode
DataPower
IW Manager iPhrase
Informix SRD
Tarian DWL
Trigo Unicorn
Venetica Ascential
Green Pasture
CrossAccess
Alphablox
Language Analysis Sol
Lotus
DataBeam
Ubique
OneStone
Pathware
Aptrix
Trilog
PureEdge
Bowstreet
PureEdge
z/OS
Wallop
Rational
Information Labs
SystemCorp
BuildForge
13. IBM Software Leadership
87,000+ WebSphere customers
1.1+ million registered WebSphere developers
Over 450,000 Information Management customers
13,000 Business Partners; 40,000 ISV applications
120 million Messaging users – 61,000 sites
8 million Instant Messaging corporate users
2.5 million Workplace users
22,000 Tivoli Systems Management customers
60 million user licenses of Tivoli Access Manager
600,000+ users of Rational Software
More than 18 million Eclipse downloads
