IBM THE MNC

Group No.5 Rakesh DhalBisoi-90

Kunal Banthia-75 Mangesh gade-23

Chinoy Mehata-09 Amit Vishwakarma-04

Prof.Manoj Das

EMBA Batch-13,ITM,Kharghar

Content

About IBM

IBM’s Historuy

Mergers and Acquisitions by IBM

IBM INDIA

Major Competitors

Conclusion

About IBM

International Business Machines Corporation, is a multinational computer technology and IT consulting corporation headquartered in Armonk, New York, United States.

IBM manufactures and sells computer hardware and software (with a focus on the latter), and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology.

It has been nicknamed "Big Blue" for its official corporate color.

IBM has been well known through most of its recent history as the world's largest computer company and systems integrator.

IBM is the largest and most profitable information technology employer in the world.

Has eight research laboratories worldwide.

IBM employees have earned five Nobel Prizes, four Turing Awards, nine National Medals of Technology, and five National Medals of Science.

Revenue – $103.63 billion (2008), $98 billion (May, 2009)

Employees – 3,98,455 (2009)

Main Business - Computer hardware, Computer software, Consultant,

IT service management Fortune 500 Rank – 15 (2009)

Global Footprints - 170 countries

Has more patents than any other US technology company has eight research laboratories worldwide.

As a chip maker, one of the Top 20 Semiconductor Sales Leaders.

About IBM

IBM HISTORY

The company which became IBM was founded in 1896 as the Tabulating Machine Company by Herman Hollerith, in Broome County, New York , where it still maintains very limited operations.

It was incorporated as Computing Tabulating Recording Corporation on June 16, 1911, and was listed on the New York Stock Exchange in 1916 by George Winthrop Fairchild.

CTR's Canadian and later South American subsidiary was named International Business Machines in 1917, and the entire company took this name in 1924 when Thomas J. Watson took control of it.

The beginning of IBM’s involvement in IT services can be traced back at least to 1989 when Eastman Kodak Company and IBM completed an agreement by which IBM designed, built and managed a new state-of-the-art data center for Kodak in Rochester, New York.

Also in 1986, IBM introduced Business Recovery Services, an offering that enables a business to continue operations in the event of an unplanned outage or disaster.

In 2002, IBM Global Services acquired the management consulting and technology services arm of PricewaterhouseCoopers

Since 1999, IBM has made 83 acquisitions.

On July 2, 2001 Informix Corporation Database Software, $100 million.

October 2, 2002, PWC Consulting from PricewaterhouseCoopers, Business Consulting and Technology Services, $350 million

February 21, 2003 Rational Software Corporation, Software Development, $210 million

April 7, 2004 Daksh e-Services India BPO Services, $17 million

October 20, 2006 Internet Security Systems (ISS) Information security, $130 million

October 20, 2006 Palisades Technology Partners, Management consulting

January 31, 2008 Cognos, Business Intelligence, $500 million

July 28, 2009 SPSS Inc. Statistical analysis software, $120 million

Acquisitions by IBM

IBM INDIA Founded - 1992 (re-entry, after an exit in the 1970s)

India Footprints - Bangalore, Delhi, Kolkata, Mumbai, Chennai, Pune, Gurgaon, Noida and Hyderabad

Employees – 1,12,000 (2009)

Estimated revenue - $1 Billion

IBM plans to invest $ 6 Billion in next 3 years in INDIA

IBM India's domestic revenues grew at 60% in 2005-06 making it one of the highest growth areas in the entire IBM portfolio of geographies & businesses.

IBM India is also the biggest domestic IT player in the country, replacing HCL Technologies.

Major India deals: Bharti Airtel - $2 billion.

Datacom Solutions (part of Videocon Industries) - $200 million

IDEA Cellular – 7 Year deal for (50 million clients)

IBM Global Services

IBM Global Services (now split to Business Services & Technical Services) was called the "jewel in the IBM crown" by the Aberdeen group in 2003.

For worldwide IBM, this is the group that contributes to more than half its global revenues presently and growing at a healthy rate.

Half of Global service employees are located in India

IBM’s India Research Lab (IRL) Since its inception in April 1998, the IBM India Research

Laboratory (IRL) – the youngest of IBM’s eight world-class globally integrated research labs - has grown significantly in technical leadership, accomplishments, and size.

IRL has grown so significantly that they have expanded from one location to two - and today, both the sites in New Delhi and Bangalore are focused on delivering real innovations to business and society.

IBM INDIA

IBM INDIA HistoryPre-liberalization

IBM commenced business in India in the 1930s and set up manufacturing there in 1951

The business operated successfully until the mid-1970s, when India’s Foreign Exchange Regulation Act (FERA) required foreign owned companies to reduce their equity ownership to (in IBM’s case) 26%.

IBM was unwilling to take that course of action and in 1978, the company ceased its operations but still continued to conduct business in India as an off-shore entity only, through a small Liaison Office.

Post-liberalization

India was liberalized in 1991, relaxing FDI norms. IBM re-entered the Indian shores in 1992 with a Tata joint-venture, named Tata Information Systems Ltd. Its business interest in India was still focused on product sales.

In 1997, IBM Global Services was set-up. India Research Lab was set-up in the IIT Delhi campus in 1998. In 1999, IBM bought out Tata's stake in the company and IBM India became a fully owned subsidiary of IBM Corporation.

IBM India milestonesYear IBM India milestones

1992 IBM enters Indian market through a joint venture with the Tata Group - christened as Tata Information Systems Limited (TISL).

1995 Accredited ISO Ticket 9001 (recertified to ISO9001:2000 in year 2001).

1997

TISL becomes Tata IBM Ltd.IBM Global Services launched - offers a range of IT services from networking services, outsourcing, education, system integration, consulting to software development and hardware design.Solution Partnership Center set up in Bangalore to help Indian ISVs port application onto proven IBM hardware platforms like AS/400 and RS/6000.

1998

IBM School of Enterprise Wide Computing launched at Indian Institute of Information Technology (IIIT) to offer short-term courses to the public, and credit courses on enterprise-wide computing to graduate and undergraduate students.

IBM India Research Laboratory established in New Delhi, located in the Indian Institute of Technology campus.

IBM India Limited formally launched - after government approves Tata's divestment plan.

IBM India launched a PC manufacturing facility in Pondicherry.

IBM Global Services India achieved CMM Level 5 Rating.

Year IBM India milestones

2000

Global e-business software center set up in Gurgaon to offer IBM customers a range of services including technical consultation, proof of concept and technical presentations, implementation planning, solution architecture, application design and development, deployment, and education and training. IBM Global Financing launched to provide flexible and attractive financing and leasing programs to fund information technology (IT) requirements of Indian customers.

2001

India Software Development Labs established in Pune and Bangalore to develop, enhance and support key IBM products & technologies with a committed investment of US $ 100 million. The state-of-the-art facility plays an important role in IBM's Linux Strategy, working closely with the worldwide Linux Technology Center.

2002

IBM Global Services India recognized as the "Top MNC Software Services Exporter" and "Top Foreign Equity Company" in Karnataka for Year 2001-02 by Software Technology Parks of India (STPI), Bangalore Chapter.IBM Global Services India has also been also recognized as 'Distinguished IT Exporter' for 2001-02 by MAIT.Dataquest, India's leading trade magazine has also rated IGSI as the Top MNC Software Services Exporter for Year 2001-2002.IBM Global Services India Exports Services has also been successfully assessed at People Capability Maturity Level 5 (version 2.0) by SEI, one of the few organizations in the world to gain this achievement.

IBM India milestones

Year IBM India milestones

2003

IBM India Research Labs launched a 'Technology Center' at its facilities to showcase business applicability of cutting edge technologies to organizations in India and ASEAN.

IBM Corporation announced the establishment of a new center in Bangalore to provide technology design services for advanced chips, cards and systems to companies in India and across Asia.

IBM India announced the launch of the 'India Smart Center', a virtual toll-free service center to provide cutting edge services and support to the small and medium businesses in metros and small towns. The center, the first one of its kind, will provide easy to use repair and restoration services for IBM desktops, and notebooks.

2004 IBM acquired Daksh eServices in India.

IBM Linux Competency Center set up in Bangalore.

IBM India milestones

Year IBM India milestones

2005

IBM launched Global Delivery Center in Hyderabad to offer services focused on designing, building, running, transforming, enhancing, and supporting clients' business applications, especially on SAP, mainframe and web technologies. The new facility is part of IBM's integrated global services delivery network of more than two dozen centers located around the world.

IBM Research Lab established Services Innovation and Research Center. The new group will focus on developing technologies and solutions that improve IBM Global Services operational and delivery capabilities in the areas of strategic outsourcing, application services, and business transformation outsourcing.

IBM Daksh opened three new Business Transformation Outsourcing delivery centers in India, significantly expanding IBM's BTO delivery capability to meet the growing domestic and international demand for BTO services. These centers are located in Pune, Chandigarh and Kolkata with a current seating capacity of 2,100 seats across the three centers.

2006

IBM announced a new Global Business Solution Center in Bangalore, enabling IBM to provide clients worldwide with a range of high-value solutions through its global network of delivery centers.

IBM's global network includes consulting delivery centers include Argentina, Australia, Belarus, Brazil and Canada.

2007 India/South Asia became IBM's sixth region within the Asia Pacific. The newly formed region will comprise

India, Sri Lanka and Bangladesh.

IBM India milestones

IBM Competitors

IT Hardware

Sun, HP and some larger rack server vendors like Dell, Intel, Samsung etc.

Software Products

Main offerings of note around database (DB2) and middleware (Websphere) - here Oracle and its acquisitions would be the main competition.

Services

Acting as consultants, system integrators and operators - here major competitors would be HP, Accenture, Unisys, EDS, Atosorigin, CapGemini, Ernst & Young and some parts of Oracle, Google (E-mail services).

Others Areas

Accenture, Deloitte Consulting, Capgemini, Hewlett-Packard, Infosys Technologies, Wipro, HCL Technologies, BearingPoint, Electronic Data Systems, Computer Sciences Corporation, Tata Consultancy Services, Siemens IT Solutions and Services etc.

Conclusion

Global Delivery Approach Multi dimensional – multiple centres Multiple businesses / Applications Multiple project / Program managers Integrated delivery

World Sourcing

Social Responsibility

Thank You