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«Year Pages 2000 2-9 2001 10-19 2002 19-31 2003 31-39 2004 39-52 2005 52-61 February 2006 1406HHX Business Performance IBM revenue climbs to $85.09 ...»

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Texaco awards a five-year, $100 million to IBM Global Services to be its primary information technology (IT) service provider. Aventis, a leading life sciences company, and IBM sign a tenyear, $1.5 billion global IT services agreement under which IBM will manage and run core elements of Aventis’ IT operations. IBM reports that it will provide IT services to The New Power Company, a new energy services company launched by Enron Corporation, under a tenyear agreement valued at up to $1.5 billion. In one of Europe’s largest outsourcing agreements, The Bank of Scotland awards IBM a ten-year, $1 billion contract to manage and operate the Bank’s IT infrastructure. IBM announces a 15-year, $1 billion global technology services agreement with mg technologies ag, an IT company. Westpac Banking Corporation selects IBM to supply its IT services for the next ten years in a $2.3 billion agreement. IBM and Xcel Energy, one of the 10 largest utilities in the United States, announce an 11-year strategic relationship to strengthen the latter’s technology infrastructure while cutting IT costs in 12 states. The total value of the relationship now exceeds $1.2 billion.

1406HHX During its six days of coverage, the Official GRAMMY Webcast, designed and hosted by IBM, registers 119 million hits, 9.6 million page views and two million visits. More tennis fans than ever before enjoy a “virtual seat” at the world-famous Wimbledon tennis Millennium Championships, recording 2.3 billion hits on the IBM-designed and delivered official Web site.

IBM builds and hosts the official American Theatre Wing’s Tony Awards Web site.

Weather.com, one of the top 25 Web sites, announces that it will use IBM technology and services to serve its massive volume of maps and images on the popular Linux operating system.

IBM solutions, including the Netfinity 4000R servers, will become part of the Internet infrastructure for weather.com, The Weather Channel Web site and the world’s leading source of Web-based weather information.

Edison Schools Inc., the leading U.S. private manager of public schools, selects IBM to help build a new model for technology in schools. IBM will provide Edison with a technology solution, including Netfinity Servers, IBM NetVista Desktops, ThinkPads, network infrastructure and Tivoli enterprise network management software for its rapidly growing national network of K-12 schools.

The company introduces IBM Insight at School, a new business intelligence solution for the K-12 market, which provides schools with the technology, consulting and services that will help them make more informed decisions to improve the learning process.

IBM announces the establishment of a $500 million global fund to significantly enhance its Net Generation financing program and expand the company’s support to fast-growing business-tobusiness Internet companies. It introduces Home Page Reader 3.0 for Windows, a low-cost, easy-to-use talking Web browser allowing many visually impaired and blind users to buy, sell or trade on the Web for the first time. IBM sells its information services extended directory assistance solution to, and retains an equity interest in, Information Services eXtended, Inc., a new company formed by Spencer Trask Intellectual Capital Company LLC.

Alliances IBM and retail industry applications leader Retek announce an expansion of their strategic alliance to produce significant benefits for the worldwide retail industry while generating revenues of more than $1 billion by 2003 for the two companies.

IBM joins with Microsoft, Avaya, Arthur Andersen and Hanny Holdings to launch Enfrastructure Inc., the first full-service infrastructure and technology provider.

IBM China Company Limited and China Great Wall Shenzhen Co., Limited announce the formation of Beijing GKI Electronics Co., Ltd. as a joint venture to provide advanced printed circuit board assembles to Nokia joint venture companies.

1406HHX Hitachi, IBM, LG Electronics, Matsushita Electric (Panasonic), Nortel Networks, Seagate Technology, Solectron and Toshiba, along with technology partners Ariba and i2 announce the creation of e2open.com, an independent, global business-to-business e-marketplace for the computer, electronics and telecommunications industries.

Bank of America, The Chase Manhattan Bank and IBM form Viewpointe Archive Services, a new check image archive company to provide Web-based check imaging.

IBM acquires equity in Structural Bioinformatics, Inc., the company’s first equity investment in a life sciences business.

Science & Technology For the eighth consecutive year, IBM receives the most U.S. patents, some 2,886 in all and 850 more than the closest competitor.

IBM is awarded the 2000 U.S. National Medal of Technology for the company’s record of innovation in storage technology. This marks the seventh time that IBM and its scientists have received the nation’s highest award for technological innovation, more than any other company or organization.

IBM scientists say they have discovered a way to transport information on the atomic scale that uses the wave nature of electrons instead of conventional wiring. This new phenomenon, called the “quantum mirage” effect, may enable data transfer within future nanoscale electronic circuits too small to use wires.

IBM’s Almaden Research Center develops the world’s most advanced quantum computer and scientists demonstrate that such devices can solve problems that are impossibly hard for conventional computers.





Company researchers demonstrate breakthrough results in developing a new family of experimental high-speed computer circuits that run at test speeds up to five times faster than today’s top chips. The new circuits employ an innovative design called “Interlocked Pipelined CMOS” to reach speeds of 3.3 to 4.5 billion cycles per second using conventional silicon transistors.

IBM reports that it has developed a new method for building microchips that can deliver up to a 30 percent boost in computing speed and performance. The new technique uses a material known as a “low-k dielectric” to shield millions of individual copper circuits on a chip, reducing electrical “crosstalk” between wires that can hinder chip performance and waste power.

1406HHX IBM begins production of powerful new microchips for servers, communications equipment and pervasive computing products, using the most advanced chip-making technology ever developed.

The new technology -- named CMOS 9S -- unites for the first time IBM innovations in copper wiring, silicon-on-insulator transistors and improved, “low-k dielectric” insulation to build chip circuits nearly 800 times thinner than a human hair.

Scientists in IBM laboratories in New York and California combine nanotechnology with chemistry to make a radically new class of magnetic materials that may allow future computer hard disks and other data systems to store more than 100 times more data than current products.

IBM, Infineon Technologies, and UMC announce plans to jointly develop advanced technologies for use in the production of logic chips with circuit sizes from 0.13 to 0.10 micron. IBM says it is developing a series of chips based on InfiniBand technology to help link multiple computer systems and peripherals such as hard drives to work together as a single high-performance server.

IBM researchers unveil IBM Memory eXpansion Technology that doubles the memory capacity of computer servers, a breakthrough that could save Internet Service Providers and other large technology installations millions of dollars.

IBM announces an initial $100 million investment to develop information technology solutions and partnerships to enable the breakthrough work being conducted to interpret the complex genetic code. IBM and NuTec Sciences, Inc., report they are building the world’s largest commercial supercomputer -- a 7.5-teraflop computing cluster -- which NuTec will use to investigate how genes interact in the human body to cause life-threatening diseases.

Scientists from IBM, Compaq and AltaVista compete the first comprehensive “map” of the World Wide Web and uncover divisive boundaries between regions of the Internet that can make navigation difficult.

IBM ships the world’s clearest computer display -- 12-times sharper than current displays -- ten years sooner than thought possible.

Facilities IBM makes the largest capital investment in its history -- $5 billion -- and announces plans in October to build the world’s most technologically advanced chip-making facility in East Fishkill, New York. The new $2.5 billion facility will combine for the first time anywhere IBM chipmaking breakthroughs such as copper interconnects, silicon-on-insulator and low-k dielectric insulation on 300mm wafers. Planned to begin operations in late 2002, the new facility will add 1,000 new jobs as it reaches full production the following year.

That same month, IBM announces plans to invest $300 million to build an organic chip packaging manufacturing facility in Shanghai, China, to support the company’s growing semiconductor business.

1406HHX Corporate Citizenship IBM contributes more than $126 million to programs around the world that help people in need.

Individual employees add another $49 million through matching grants and donations to nonprofit organizations and educational institutions and volunteer 4 million hours of their time to a broad range of local issues.

Business Performance IBM’s revenue is $85.9 billion, a decline of two percent from 2000, and net income is $7.7 billion, down 4.9 percent from the year before. There are 319,876 employees and 673,967 stockholders at year end.

Organization IBM acquires CrossWorlds Software, Inc., a leading provider of software to automate business processes that integrate multiple applications. The acquisition further strengthens IBM’s business in the fast-growing e-business infrastructure software segment.

IBM acquires Mainspring, a digital business strategy consulting firm in April, and the assets of Informix Software -- the database business of Informix Corporation -- in a cash transaction valued at $1 billion in July.

Nextant, a leading technology and consulting firm in the energy field, purchases IBM’s Chem Systems business unit.

Products & Services The company reports that it has nearly doubled the mainframe’s ability to process highly secure Internet transactions, and says the IBM eServer z900 is the first server to achieve a record 3,850 transactions per second. IBM ships its 1,000th IBM eServer z900 on September 24 to Boscov’s, the largest family-owned department store company in the United States.

In October, IBM announces the eServer p690 (“Regatta”) as the world’s most powerful UNIX server, crowning a five-year effort to deliver a new class of UNIX system that incorporates microprocessor breakthroughs and mainframe technologies. When tackling the most complex problems, multiple p690 servers can be linked together to create supercomputers powered by more than 1,000 processors. Later in the month, IBM reports that “Regatta” sets a world record for processing speed on the important Fluent engineering benchmark. The company begins shipping “Regatta” in volume in December.

The company announces the IBM eServer p660 Model 6M1, the world’s most powerful midrange server. In October, it introduces the IBM eServer p610 as the world’s most powerful entry server, a two-way UNIX system that provides industry-leading performance, wireless manageability features and advanced self-healing technologies.

1406HHX World Access, a global provider of telecommunications services, purchases the largest-ever IBM eServer iSeries system -- the eServer i840 -- to process billings for more than 100 million telephone calls per day.

The Personal Systems Group says it will use “self healing” technology in an online customer service infrastructure to diagnose and resolve common information technology (IT) problems.

IBM unveils plans for the eServer x430, a powerful 64-way server designed to bridge the gap between smaller Intel-based platforms and the mainframe. The x430 will be the first enterprise server designed to take full advantage of the new Linux Application Environment. … The company rolls out the eServer x250 (4-way), eServer x350 (4-way) and the eServer x370 (8way), all with the new Intel 900 MHz Pentium III Xeon processors. … Also introduced are the IBM eServer xSeries 300, a powerful and affordable thin (1.75-inch) server and a new series of server appliances to provide up to a fivefold increase in the speed of delivering Web content to end users. … IBM debuts the IBM eServer x380, IBM’s first Itanium-based server, which, with new IntelliStation Z Pro workstations, will form a new Linux supercluster at the National Center for Supercomputing Applications. … In June, IBM announces eServer xSeries 232 and 342 that include intelligent management features to support IBM’s Project eLiza initiative, a multi-billion dollar program aimed at creating a realm of self-managing servers requiring little or no human interaction. The new systems offer small and medium businesses access to mainframe and selfhealing technologies at entry-level prices. … In August, the company introduces the IBM eServer x200VL, the industry’s most powerful small business server, along with the x200 and x220.

With the IBM eServer Cluster 1300, the company introduces the industry’s first prepackaged Linux clusters integrating best-of-breed components into a single, easy-to-order and -deploy package. The Cluster includes the IBM eServer x330, the industry’s most powerful thin server, and the x342.

IBM rolls out its first Intel-based servers featuring the IA-32 Intel Xeon Processor MP (“Foster” MP) and incorporating IBM’s Enterprise X-Architecture. The new eServer x360 marks the debut of IBM’s XA-32 core chip set (code named “Summit”) that features IBM’s most advanced Copper Chip and Silicon-on-Insulator breakthroughs and mainframe-inspired technologies to help customers consolidate scores of Intel servers and reduce total cost of ownership. The company begins shipping the new server in December.



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