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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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Science & Technology IBM earns 3,415 U.S. patents in 2003, breaking the record for patents received in a single year and extending its run as the world's most innovative company to eleven consecutive years. Led by growth in patents that fuel the company's latest on demand computing and services offerings, IBM eclipses the nearest company by more than 1,400 patents. During the past eleven years, IBM innovations have generated more than 25,000 U.S. patents -- nearly triple the total of any U.S. IT competitor during this time and surpassing the combined totals for Hewlett-Packard, Dell, Microsoft, Sun, Oracle, Intel, Apple, EMC, Accenture and EDS. IBM is the only company to receive 3,000 patents from the United States Patent and Trademark Office in a single year, passing that milestone each of the past three years.

IBM says it will provide the Arctic Region Supercomputing Center with a powerful new supercomputer that will help researchers gain new understanding of the complex environmental relationships that support marine life in the Gulf of Alaska. The supercomputer -- dubbed “Iceberg” -- will contain 92 IBM eServer p655 systems, each with eight POWER4 microprocessors, and two IBM eServer p690 systems, each with 32 POWER4 microprocessors, running AIX, IBM’s UNIX operating system.

The U.S. National Weather Service activates its most powerful, weather forecasting supercomputer ever. The first phase of the installation consists of a cluster of 44 IBM eServer p690 servers supported by 42 terabytes of IBM TotalStorage FAStT500 Storage Server disk storage -- doubles the Service’s computing power. IBM will expand the system to reach a peak speed well in excess of 100 teraflops by 2009. It would take one person with a calculator more than 80 million years to tabulate the number of calculations a 100 teraflop supercomputer can handle in a single second.

1406HHX An initial small-scale prototype -- roughly the size of a 30-inch television -- of IBM’s Blue Gene/L supercomputer is ranked as the 73rd most powerful supercomputer in the world. The prototype is roughly 1/20th the physical size of machines of comparable computing power.

When completed, Blue Gene/L is expected to operate at a peak performance of about 360 teraflops (360 trillion operations per second) and occupy 64 racks -- taking up only about the same space as half of a tennis court.

IBM and the European Organization for Nuclear Research (CERN) announce that IBM is joining the CERN openlab for DataGrid applications to collaborate in creating a massive datamanagement system built on Grid computing. IBM’s innovative storage virtualization and file management technology -- Storage Tank -- will play a pivotal role in this collaboration, which aims at creating a data file system to help CERN scientists understand some of the most fundamental questions about the nature of matter and the universe. By 2005 the CERN openlab collaboration with IBM is expected to be able to handle up to a petabyte (a million gigabytes) of data, which is the equivalent to the information stored in 20 million four-drawer filing cabinets or 500 million floppy disks or 1.5 million CD-ROMs.

IBM, United Devices and Accelrys announce a project supporting a global research effort to develop new drugs that could possibly combat the smallpox virus post infection. The project will be powered through a massive computing “Grid” that will enable millions of computer owners worldwide to contribute idle computing resources with the goal of developing a wide collection of potential anti-smallpox drugs.

IBM and China’s Ministry of Education announce they have begun using grid technology to enable universities across the country to collaborate on research, scientific and education projects. This is one of the world’s largest implementation of Grid computing -- which takes untapped application, data and computing resources from different computing systems and makes them available where and when they are needed, resulting in a single, virtual system.

IBM creates the world’s smallest solid-state light emitter. This research breakthrough -- the first electrically-controlled, single-molecule light emitter -- demonstrates the rapidly improving understanding of molecular devices. The results also suggest the unique attributes of carbon nanotubes may be applicable to optoelectronics, which is the basis for the high-speed communications industry.

Scientists from Columbia University, IBM and the University of New Orleans announce the first three-dimensional assembly of magnetic and semiconducting particles only billionths of a meter across.

IBM researchers develop an innovative chip design that can improve performance fourfold or reduce power consumption fivefold in wireless devices compared to the state-of-the-art thinsilicon bipolar technology.

1406HHX IBM reports that a team at the University of Texas at Austin and IBM’s Austin Research Laboratory will collaborate to produce an adaptive, high-performance microprocessor that could revolutionize computing by providing supercomputer performance on a single chip.

Grady Booch, Dr. Donald Chamberlin, Dr. George Galambos, Rod Smith and Charles Webb are named as IBM Fellows, the company’s preeminent technical distinction. Only 175 individuals -including 56 active employees -- have earned this designation in the company’s history.

Japan’s largest national research organization orders an IBM eServer Linux supercomputer that when completed will deliver more than 11 trillion calculations per second, making it the world’s most powerful Linux-based supercomputer. The system with a total of 2,636 processors will include 1,058 eServer 325 systems with 2,116 AMD Opteron processors.





Facilities In January, IBM announces that Sanmina-SCI will acquire or lease IBM manufacturing equipment and buildings in Guadalajara, Mexico and Greenock, Scotland that support IBM NetVista desktop systems, ThinkPad notebooks and eServer xSeries systems. This is part of an agreement to outsource to Sanmina-SCI a significant portion of IBM’s manufacturing of low and midrange xSeries and IntelliStation workstations for customers in the Americas, mainland Europe, the Middle East and Africa. Similarly, Solectron will acquire a significant portion of the manufacturing operations of Global Asset Recovery Services, an offering of IBM Global Financing that restores end-of-lease PCs and other information technology equipment for resale.

Solectron will acquire the IBM refurbishing center that supports this operation in Research Triangle Park, N.C.

The company starts up its first facility designed to deliver supercomputing power to customers over the Internet. The new deep computing facility is located in IBM’s Poughkeepsie, New York, plant and is initially equipped with a cluster of IBM eServer xSeries Intel-based Linux systems with related disk storage. GX Technology Corporation, which produces high resolution subsurface images from large volumes of seismic data, is one of the facility’s first users.

IBM establishes a new center in Bangalore, India, to provide technology design services for advanced chips, cards and systems to companies in India and across Asia. The center is part of IBM’s Engineering & Technology Services division.

In April, the company opens a new center in London for the financial sector, the latest of nine new IBM Linux competency centers IBM has across four different continents.

In July, IBM establishes a new center in Haifa, Israel to provide technology design services for other companies that need advanced chips.

Corporate Citizenship IBM introduces a first-of-its-kind initiative -- the IBM On Demand Community -- to encourage and sustain corporate philanthropy through volunteerism. The program will arm employees with 1406HHX valuable IBM technology tools targeted for non-profit community organizations and schools in 91 locations around the world.

U.S. Secretary of Labor Elaine L. Chao announces that IBM is receiving a 2003 New Freedom Initiative Award from the U.S. Department of Labor in recognition of its training and mentoring programs for the disabled. In addition to its equal opportunity hiring practices, the company is also recognized for its dedication to making technology products and services available to people of all abilities, as well as its commitment to research in this area through the IBM Accessibility Center.

IBM expands its Asset Recovery Solutions, services providing small and medium businesses with a cost-effective, environmentally-responsible and easier way to deal with IT systems -- such as PC servers, notebooks, desktop PCs, monitors and printers -- they no longer need.

Business Performance IBM revenue from continuing operations increases eight percent over the year before to $96.5 billion, while income from continuing operations increases 11 percent to $8.4 billion. There are 329,009 employees and 660,628 shareholders at year-end.

Organization In January, the former Systems Group and Technology Group are combined into a new Systems and Technology Group.

Lenovo Group Limited -- the leading Personal Computer brand in China and across Asia -- and IBM announce in December a definitive agreement under which Lenovo will acquire IBM’s Personal Computing Division to form the world’s third-largest PC business. The move brings IBM’s leading enterprise-class PC technologies to the consumer market and gives Lenovo global market reach beyond China and Asia. Lenovo will be the preferred supplier of PCs to IBM, enabling IBM to offer a full range of personal computing solutions to its enterprise and small and medium business clients. IBM will have an 18.9 percent ownership share in the Lenovo Group.

Approximately 10,000 current IBM employees -- more than 40 percent of whom already are in China and less than a quarter of whom are in the United States -- will join Lenovo. IBM will receive at least $650 million in cash and up to $600 million in Lenovo Group common stock, subject to a lock-up period expiring periodically over three years. The transaction is expected to be completed in the second quarter of 2005.

IBM agrees to acquire Trigo Technologies, Inc., of Brisbane, Calif., a leading provider of product information management middleware. The transaction is completed in April, and Trigo Technologies is integrated into IBM as part of the WebSphere brand, a strategic component of the IBM Software Group.

1406HHX IBM acquires Candle Corporation, a privately-held company based in El Segundo, Calif. Candle, which offers a broad range of solutions to help customers develop, deploy and manage their enterprise infrastructure, is integrated into IBM Software Group.

IBM agrees to acquire the Business Continuity Services unit of Schlumberger. With operations in Europe and the United States, SBCS offers IT infrastructure and data recovery services in case of unplanned events or outages, and will become an organization within IBM Global Services.

IBM completes an agreement to acquire Alphablox Corporation, based in Mountain View, Calif.

Its software technology enables customers and business partners to embedded analytics -- such as customer buying trends -- into existing business processes. Alphablox’s operations will be integrated into IBM’s Information Management software business and Alphablox products will be available from IBM and its Business Partners.

In July, IBM agrees to acquire Cyanea, of Oakland, Calif., a leading provider of software that monitors and manages the performance of Web-based applications. Cyanea’s operations will be integrated into IBM’s Tivoli systems management software business and its products will be available from IBM.

IBM acquires Venetica, a privately held company based in Charlotte, N.C. Venetica is a leading provider of enterprise content integration software that enables organizations to access unstructured information such as business documents, still images, digital media and Web pages, and integrate it into existing business processes. In October, Venetica’s business operations and employees are integrated into the IBM Information Management Software division, and its VeniceBridge technology is integrated into IBM’s DB2 Information Integrator family of products.

IBM acquires Systemcorp A.L.G. Ltd., a leading provider of Project Portfolio Management software that provides organizations with a comprehensive view of IT projects across the enterprise. Systemcorp’s operations will be integrated into IBM’s Rational software development business.

IBM and RBC Insurance report in November that IBM has agreed to acquire Liberty Insurance Services Corp., the U.S. business process services and solutions operations of RBC Insurance.

This acquisition will establish IBM as a leader in life insurance and annuity processing and administration, both in North America and globally. Following the acquisition, LIS will become an IBM subsidiary.

In December, IBM completes its acquisition of the Danish companies Maersk Data and Dmdata.

The acquisition represents a multi-billion dollar emerging market opportunity as IBM moves aggressively into the Business Transformation Services arena. IBM also says that it has completed new contracts worth in excess of $1 billion with A. P. Moller - Maersk, one of the world’s largest container shipping companies and Danske Bank, one of the largest banks in the Nordics for the provision of consulting and IT services.

1406HHX

IBM launches the Center for Business Optimization, combining management consulting, advanced mathematical research, business performance management software capabilities and deep computing power to help solve some of the most complex problems facing businesses and government agencies around the world. The Center will draw on the analytical resources of IBM Research, which hosts the largest population of management scientists, mathematicians and computer scientists in the industry. It also will work closely with IBM’s business strategy and business intelligence consultants of IBM Business Consulting Services, and the business performance management experts of the IBM Software Group. In addition, the Center for Business Optimization will use the computing power of IBM’s global network of on demand supercomputing centers, including those in Poughkeepsie, N.Y.; Houston, Tex.; and Montpellier, France.

LGIBM PC Co. announces that the joint venture will be dissolved into its separate parent companies, LGE and IBM Korea, effective January 1, 2005. LGIBM PC Co. was established in November 1996 and had become a leader in the Korean computer marketplace.



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