To remain competitive, meet client demands and drive new business opportunities in emerging and growth markets, IBM has transformed its business with a focus on software and services.
Contributing more than 42% of IBM's business profits, IBM Software has become the profit driver for IBM, and a significant reason behind the company's ongoing transformation. Today more than 65 000 employees, 35 000 software developers and 25 000 sales and technical support professionals are dedicated to the IBM software business around the globe.
In the last decade, software revenue has doubled and its profits tripled — driving more than $8-billion in profits in 2009 alone. These strong results have enabled IBM to invest in new growth areas including Smarter Planet, data centre transformation, cloud computing and business analytics.
Recently, IBM realigned its software business around two key growth areas: Software solutions led by senior vice-president Mike Rhodin, and software middleware led by senior vice-president Robert LeBlanc.
Software solutions focuses on high growth opportunities – like integrated offerings for business analytics, collaboration and industry solutions. Software middleware, including information management, Tivoli, Rational and WebSphere, is number one in all key segments where IBM competes, and Forrester cites IBM as the number one provider of middleware in the marketplace.
Since 2000, IBM has acquired nearly 100 companies, including 65 software companies, to strategically enter new businesses or build out existing ones in order to capitalise on the evolving business landscape.