International Business Machines Corp. / IBM
IBM Researcher Max Tahir shows how his spoken Arabic is translated into English. IBM donated 1,000 two-way automatic translation devices to the U.S. government to support better communication in Iraq. (Photo: Courtesy of company.)
About International Business Machines Corp.
New Orchard Rd., Armonk, N.Y. 10504
www.ibm.com
| 914-499-1900
| Founded: 1911
Industry: Information Technology | Category: Top Companies Headquartered Outside Region
IBM took some strategically daring steps last year, particularly with its software business, by offering more than 500 software patents for free for use in the health-care and education industries. Company leaders said they promote so-called open-source software and that instead of making money by tailoring the software to various clients, the firm can make money consulting for those clients. But even as IBM has moved in recent years to push its consulting services, the revenue of some of the consulting units fell below expectations last year. IBM's business also weakened in Europe last year; the company cut 13,000 jobs after sales in France, Germany and Italy were lower than expected.
IBM took steps last year to expand its offerings to business. For $865 million, the company acquired Micromuse Inc., which monitors the computer networks of major firms such as large telecom companies. The acquisition will expand IBM's ability to help manage the increasingly complex networks of voice and video traffic over clients' information technology networks. IBM also acquired 10 smaller software firms to strengthen its portfolio of offerings to clients. In doing so, it made a push to take on Microsoft.
Big Blue is pushing growth in its microelectronics unit. The company is expected to make a splash in the microprocessing business with an innovative new computer chip in the next generation PlayStation 3 video game console that's due out later this year. But, like many of its older corporate competitors, IBM still struggles with workforce-related costs. The company announced it will freeze its U.S. pension plan in 2008, which will help it save billions of dollars. IBM has one of the biggest pension plans in the country.
2007 Financial Data
Total employees: 175,000 | Local employees: 7,300Did You Know
IBM is the nation's second-largest technology company, after Microsoft Corp. Having sold its PC business in 2004 to a Chinese company, the firm's growth has been focused in other areas, mostly consulting services. The company serves as a leader in developing new software and other technology. It provides consulting to hundreds of businesses and government groups, and its technology is used in aerospace, auto, travel, telecommunications and retail.
