2010 IBM STG Analyst Meeting - Sponsored Whitepaper

IBM’s STG growth hinges on its ability to deliver

value to clients through integration and innovation

Nov. 15 – 17, 2010 Authors: Chris Foster, TBR Vice President of Operations Greg Richardson, TBR Hardware Analyst John Spooner, TBR Hardware Practice Manager

TBR Perspective IBM is taking the emphasis off the pure horsepower of its systems and directing its efforts and resources toward addressing specific business needs. To that end, IBM is offering to answer customers’ key question of “How do IBM systems add value to core business processes?” TBR believes IBM’s Systems and Technology Group (STG) is positioned to sustain revenue and profit growth by leveraging hardware as pieces of purpose-built solutions that are differentiated with software and services. By utilizing the assets of its software and services portfolio in combination with System z, Power and System x hardware, IBM is designing solutions that target key customer needs. The focus on bundled solutions was evidenced by a paradigm shift at IBM, which led to the appointment of Steve Mills to oversee both IBM’s hardware and software businesses. TBR believes Mills’ new role points to a company commitment to drive synchronized growth and a unified strategy between IBM’s hardware and software business units. During his opening keynote address at the 2010 IBM STG Analyst Meeting, Rodney Adkins, senior vice president of IBM’s STG, stated that IBM’s strategic transition is a response to two changing demands in the market place: IT designed to meet specific business needs, data that can be analyzed, consumed, and utilized by an increasing number of individuals within an organization. IBM SVP and Group Executive of Sales, Marketing, and Strategy, Ginni Rometty, demonstrated that IBM’s shifting strategy is a result of customer demand for IT products that help drive “innovation through integration;” addressing the need for IBM customers to expand globally and work with individuals with the best skill sets worldwide; and a shrinking gap between customer demand for high-value and low-cost solutions. TBR believes IBM will increasingly rely on its ability to leverage multiple pieces of its portfolio, enabling the company to be dynamic and meet changing customer needs, leading to continued growth opportunities.