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30 Reasons Why Software Rules at IBM
by Darryl K. Taft
IBM - The Software Company
IBM is the world's second-largest software company by revenue with $22 billion in revenue last year.
IBM Reaps Big Profits from Software
Software accounted for more than 42 percent of IBM's profits last year.
IBM - The King of Middleware
IBM is the market leader in middleware products, according to Forrester Research.
The IBM Software Army
IBM Software Group has 50,000 employees.
More than 25,000 Developers and Counting
IBM Software Group has 25,000 software developers building and maintaining IBM's software portfolio.
The Software Marketing Team
IBM Software Group employs more than 15,000 sales employees to get its software out to the market.
Aligning Software Solutions with Middleware
Early in 2010 IBM created two umbrella organizations: IBM Software Solutions Group and IBM Software Middleware Group, to align its industry and analytics growth plays.
Smarter Planet Strategy Built on Software
IBM Software Group is essential to the company's Smarter Planet strategy, particularly the Tivoli brand, which helps manage complex systems that characterize "Smart" environments.
Smarter Planet Automates Global Infrastructures
Smarter Planet is about modernizing and automating the world's physical infrastructures—from railroads to water management, to food traceability and health-care modernization.
IBM's Software Shopping Spree
Since 2000, IBM has acquired nearly 100 companies, including more than 60 in the software space such as Cognos, Filenet, Telelogic, Micromuse and MRO Software.
IBM Software Follows the Money
IBM is investing in high-growth markets such as the business integration software market, which IDC estimates will grow nearly 15 percent annually over the next few years to reach $3 billion by 2013.
The Analytics Business Opportunity
IBM has invested significantly in its business analytics offerings by acquiring companies such as SPSS. The business analytics market is estimated to be a $100 billion opportunity, growing at 8 percent annually, analysts say.
Tivoli a Leader in Asset Management
IBM has proven asset management technology in its Tivoli software, and IDC estimates that asset management solutions represent a $122 billion IT opportunity today.
The WebSphere Transaction Pipeline
At least $5 trillion worth of application investments currently reside on IBM systems and software, and nearly 80 percent of all transactions pass through IBM's WebSphere software, IBM says.
IBM Built Big Business on SOA
IBM is the market leader in SOA (service oriented architecture) with more than 8,000 customers and more than 53 percent of the SOA market, according to analyst firm Wintergreen.
IBM Tops BPMS Market
IBM is ranked No. 1 in the BPMS (business process management systems) market, according to both Gartner and Forrester.
IBM's Rational Tools Keep Developers Happy
IBM's Rational tools suite took first place in the 2009 Evans Data Software Development Platform User Satisfaction survey.
IBM Leads in Application Integration
IBM is No. 1 in application integration market share, according to Gartner.
Another IBM Cash Cow - IT Operations Software
IBM is No. 1 in IT operations software based on total revenue, according to Gartner.
Software Profits Nearly Triple in 10 Years
IBM Software Group profit has grown from $2.8 billion in 2000 to $8 billion in 2009.
IBM Invests Billions in Research
In 2009, IBM invested nearly $6 billion in research and development and IBM's Software Group draws heavily from IBM Research for innovations.
Photo: Dr. John E. Kelly III, senior vice president and director of IBM Research
IBM Tops in Patent Filings
For the 17th year in a row, IBM led all companies in U.S. patents with more than 4,900 in 2009. A significant number of those patents were for software.
IBM Invests $10 Billion in Business Analytics
Since 2005, IBM has invested $10 million in its business analytics push, including 14 acquisitions.
Project Vulcan Makes Inroads on Collaboration Systems
IBM is making inroads in the collaboration software space. IBM says its Lotus division's Project Vulcan is the first expression of the advanced properties needed to create next-generation collaboration systems. IBM Project Vulcan is designed to exploit the convergence of cloud and on-premise systems; collaborative services business applications and social networks; and desktops, netbooks and mobile devices. The capabilities of IBM Project Vulcan will be delivered in future releases of products such as LotusLive, Lotus Notes and Domino, Lotus Connections, Quickr and WebSphere Portal.
LotusLive Labs Focuses on Collaboration in the Cloud
IBM Research and Lotus are joining forces to deliver new innovation on the Web through the creation of LotusLive Labs—a proving ground for advances in business-driven collaboration in the cloud.
Lotus Collaboration Software Goes Mobile
IBM recently announced an expansion of Lotus collaboration software and delivery of enterprise secure mail for Android, iPhone and Nokia smartphones, and plans to expand its enterprise mobile messaging offering in a future release of Lotus Traveler.
Automating Traffic Systems Around the World
IBM Software helps run Smarter Traffic and Rail Systems in Brisbane, London, Singapore and Stockholm.
Software Manages Water Resources in Nation's Capital
IBM Software is helping Washington, D.C., better manage its water and sewage via a Smart Water System powered by IBM.
IBM Wins Cloud Service Accolades
In a 2009 Evans Data survey, developers selected IBM as having the strongest private cloud services technology for providing the most secure cloud environment and also rating highly in reliability and ability to execute.
The Hand Driving the Software Machine
IBM Software Group is run by the iron hand of Steve Mills, who says: "My story has never changed: I just work hard." The tireless Mills has led IBM Software Group since its inception in 1995.
Photo: IBM senior vice president and group executive Steve Mills
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Once the neglected stepchild of IBM's colossal services business and systems unit, IBM Software is now a huge profit driver for Big Blue. Indeed, IBM's Software Group now competes with IBM Global Services as the top money maker for the company. Over the past decade, IBM has transformed its business model as the company shifted to higher value areas of software, improved efficiencies of its business and invested in long-term opportunities. This slide show identifies 30 reasons why software is big business at IBM.