IBM Recent Developments
In October 2018, IBM launched its blockchain-based food tracking network, Food Trust, after 18 months of testing.
IBM M&A Activities
In October 2018, IBM acquired software company Red Hat for $34 billion, including debt, as it seeks to diversify its technology hardware and consulting business into higher-margin products and services.
The transaction is by far IBM’s biggest acquisition. It underscores IBM Chief Executive Ginni Rometty’s efforts to expand the company’s subscription-based software offerings, as it faces slowing software sales and waning demand for mainframe servers. IBM, which has a market capitalization of $114 billion, will pay $190 per share in cash for Red Hat, a 63 percent premium to Friday’s closing share price.
IBM Overview
Ownership: - NYSE: IBM
Employees: 380000
Functional Market: Analytics and BI, Collaboration, Content Management, Customer Relationship Management, eCommerce, Enterprise Performance Management, ERP Financial Management, ERP Services and Operations Management, Human Capital Management, IT Service Management, Project Portfolio Management, Procurement, Sales Performance Management, Supply Chain Management, Treasury and Risk Management,
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communications, Construction and Real Estate, Consumer Packaged Goods, Distribution, Education, Government, Healthcare, Insurance, Leisure and Hospitality, Life Sciences, Manufacturing, Media, Non Profit, Oil, Gas and Chemicals, Professional Services, Retail, Transportation, Utilities,
IBM Key Enterprise & Cloud Applications
Clearleap, IBM Campaign, IBM Commerce on Cloud, IBM Configure, Price, Quote, IBM Customers Experiene Analytics, IBM Interact, IBM Marketing Cloud, IBM Procurement, IBM WebSphere Commerce, Kenexa, Sterling, Ustream
SCORES Analysis
IBM Strengths
IBM's research and development (R&D) operations differentiate the company from its competitors. IBM annually invests 7 to 8 percent of total revenue for R&D, focusing on high-growth, high-value opportunities.
IBM Research works with clients and the company's business units through global labs on near-term and mid-term innovations. It delivers many new technologies to IBM's portfolio every year and helps clients address their most difficult challenges. IBM Research scientists are conducting pioneering work in artificial intelligence, quantum computing, blockchain, security, cloud, nanotechnology, silicon and post-silicon computing architectures and more—applying these technologies across industries including healthcare, IoT, education and financial services.
In 2017, for the 25th consecutive year, IBM was awarded more U.S. patents than any other company. IBM's 9,043 patents awarded in 2017 represent a diverse range of inventions in artificial intelligence, cloud, cybersecurity and other strategic growth areas for the company.
The company continues to actively seek IP protection for its innovations, while increasing emphasis on other initiatives designed to leverage its IP leadership. Some of IBM's technological breakthroughs are used exclusively in IBM products, while others are licensed and may be used in IBM products and/or the products of the licensee.
As part of its business model, the company licenses certain of its intellectual property, which is high-value technology, but may be in more mature markets. The licensee drives the future development of the IP and ultimately expandhe customer base. This would generate IP income for the company both upon licensing, and with any ongoing royalty arrangements between it and the licensee.
While the company's various proprietary IP rights are important to its success, IBM believes its business as a whole is not materially dependent on any particular patent or license, or any particular group of patents or licenses. IBM owns or is licensed under a number of patents, which vary in duration, relating to its products.
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- Key differentiators
- Domain Expertise
- Product portfolio
- Solution scope
IBM Revenues, $M:
| Type/Year | 2016 | 2017 | YoY Growth, % |
|---|---|---|---|
| Total Revenues, $M | Subscribe | Subscribe | Subscribe |
| Enterprise Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
| Cloud Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
IBM Revenue Breakdown By Type, $M:
| Type | License | Services | Hardware | Support & Maintenance | SaaS |
|---|---|---|---|---|---|
| % of Total Revenues | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe |
| Revenues, $M | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe |
IBM Enterprise Applications Revenues By Functional Markets, $M:
IBM Enterprise Applications Revenues By Verticals, $M:
IBM Revenues By Region, $M
| Region | % of Total Revenues | 2017 Total Revenues, $M | 2017 Enterprise Applications Revenues, $M | 2017 Cloud Applications Revenues, $M |
|---|---|---|---|---|
| Americas | Subscribe | Subscribe | Subscribe | Subscribe |
| EMEA | Subscribe | Subscribe | Subscribe | Subscribe |
| APAC | Subscribe | Subscribe | Subscribe | Subscribe |
| Total | Subscribe | Subscribe | Subscribe | Subscribe |
IBM Direct vs Indirect sales
| Region | Direct Sales | Indirect Sales | Total |
|---|---|---|---|
| Type % | Subscribe | Subscribe | Subscribe |
| Revenues, $M | Subscribe | Subscribe | Subscribe |
IBM Customers
No. of Customers: Subscribe
No. of Enterprise Applications Customers: Subscribe
No. of Cloud Customers: Subscribe
No. of Cloud Subscribers: Subscribe
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- Reference wins across regions
- Customer Size segments
- Customer wins momentum
IBM Opportunities
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- Market Opportunities at the vertical and subvertical levels
- Mergers and Acquisitions (M&A), Funding
- Geo Expansions
IBM Risks
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- Ability to handle internal and external risk and challenges
IBM Ecosystem
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- Health of ecosystem
- Network Effects of BPO, ISV, SI
- VAR Partners
- Direct vs Indirect sales
IBM Cloud Infrastructure Insights
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- Cloud Infrastructure (IaaS)
- Cloud Platform (PaaS)
- Cloud Application delivery (SaaS)
- Data Center (Hosting)
Research Methodology
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
For additional information on our methodologies, here's the link:
https://www.appsruntheworld.com/https://www.appsruntheworld.com/offerings
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