IBM System z computers are mainframes that support IBM operating systems as well as a variety of industry standard software, such as Java and Linux. IBM System x (xSeries) computers are Intelbased. IBM BladeCenter systems are rack-mount computers that take up little space and energy compared with conventional computer systems. IBM Unix servers include the IBM System p (pSeries) computers and IBM IntelliStation Power systems, which are 64-bit, IBM Power processor- based systems. IBM Linux servers can run on IBM Power processors, Intel x86 servers, and AMD Opteron-based servers. There are also 32- and 64-bit IntelliStation Pro workstations that run Microsoft Windows and Linux.

IBM Power Systems of computers, introduced in April 2008, are basically the next generation of IBM System i (iSeries) computers mixed with the System p computers. Some history. The iSeries, introduced in 2006, was a rebrand of eServer iSeries, introduced in 2000, which itself was the next-generation IBM AS/400 minicomputers, which were introduced in 1988. The AS/400 only ran the OS/400 operating system. System p computers were the former RS/6000 (for RISC System/6000) computers, which ran only Unix.

IBM cluster systems are scalable, high-performance computing systems that can be powered by AMD Opteron, IBM Power6, or Intel Xion processors (or combinations of the three) and run on IBM AIX, Linux, or Microsoft Windows Computer Cluster Server 2003. IBM cluster software helps in building, managing, and expanding such cluster environments.

IBM semiconductor products include ASICs, the IBM Power Architecture (PowerPC, Power4, Power5, and Power6 processors, which are used in applications ranging from consumer electronics to supercomputers) and custom chips. IBM foundry products include bulk, low-power, and RF CMOS; and silicon-germanium, high voltage, and silicon-on-insulator technologies. The company has two fab plants: 200 mm fab in Burlington, VT, and 300 mm fab in East Fishkill, NY.

Software from IBM provides operating systems, middleware, data and systems integration, software development, and application software for data and content management, business financial and process management (pick any three letters: CRM, EAM, ERP, SCM, SFA, and more), office productivity, commerce (web and otherwise).

This segment includes several software brands gained through acquisitions:

IBM information management software (and services) help implement the infrastructure for IOD, including data and enterprise content management software.

Lotus software (from 1995 acquisition of Lotus Development Corp., a software company known for its business and groupware software, most notably the spreadsheet program Lotus 1-2-3 and-at the time- the messaging program Lotus Notes) helps individual users collaborate through real-time communication and knowledge management using collaborative, messaging, and social networking software.

Tivoli infrastructure software (1996 acquisition of Tivoli Systems for its network system management software) helps customers centrally manage networks, including security and storage.

Rational software (2002 acquisition of Rational Software for its software development and application lifecycle management software) includes integrated tools for developing software for process automation.

WebSphere products include middleware and applications software to create, run, and monitor Web-enabled applications for a wide variety of business processes as well as product lifecycle management software.

Global Financing segment provides commercial financing, lease and loan financing, and trade-in, sale, and lease of used equipment.

Competition

In just about every category of IT, regardless of computer hardware, software (operating system, information management, and business application) and industry IT need, IBM has competitors in terms of installed customer base, industry preference, state-of-the- art technology, market awareness, or a combination thereof. IBM's key competitors include Apple, Dell Computer, EMC, Hewlett-Packard, NCR, Silicon Graphics, and Sun Microsystems. International competitors include Canon, Fujitsu Siemens, Hitachi, and Toshiba.

Chip manufacturers Intel and AMD are both suppliers and competitors to IBM. Likewise, information management and enterprise application software from BMC, CA (Computer Associates), Microsoft, Oracle, and SAP, to name a few vendors, run on IBM systems. These companies are also competitors. In terms of IT implementation/ consulting services, IBM competes with powerhouse IT consulting firms Accennare, Capgemini, and EDS, as well as traditional hardware vendors such as HP and Sun Microsystems, and traditional software vendors such as Microsoft and SAP. In data communications and network systems, IBM competes with Cisco Systems and Nortel. IBM also has competitors depending on market niche, such as BAE systems in the defense and aerospace arena.

Ironically, while "open systems" computing, such as applications based on the Linux operating system, might create competition for certain companies, it doesn't for IBM. IBM has hardware that can run Microsoft Windows, Linux, IBM's own version of Unix, plus various proprietary IBM operating systems-and has the IT infrastructure as well as applicationspecific software to run on those operating systems.

The complete list of IBM services- by industry, business issue, business consulting area, and hardware and software platform:

www.935.ibm.com/services/us/index.wss/allservices.

The focus of a modern major computer company

By industry need

* Business intelligence (BI)

* Customer relationship management (CRM)

* Digital media

* Enterprise resource planning (ERP)

* Financial management * Human capital management

* Product lifecycle management (PLM)

* Security

* Sensors and actuators

* Strategy and change

* Supply chain management (SCM)

By information technology (IT) issue

* Business process management

* Collaboration

* Content management

* Cost management

* Data management

* Disaster recovery

* Distribution management

* Energy efficiency

* Enterprise application integration

* Regulatory compliance

* Security

* Systems management

* Virtualization

* Workforce productivity

How does your company rate on key elements of innovation? The IBM Innovation Assessment Tool asks a series of questions based on a global survey of 750 CEOs in 2006. Your answers are compared to the benchmarks in this survey. Visit

www-935.ibm.com/services/us/gbs/bus/html/gbs ceo_iat.html?re=schome.

by Lawrence S. Gould * CONTRIBUTING EDITOR

Copyright Gardner Publications, Inc. Oct 2008

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