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IBM India

IBM Confidential © 2008 IBM Corporation

IBM Overview

© 2009 IBM Corporation2

IBM India / SA

Agenda

IBM Corporation – Brief history, Structure

IBM in India/South Asia – brief history & structure

Key Business Metric used in achieving objectives

Overall IBM India Structure

Brands

– STG , SWG, GTS, GBS, IGF


IBM India / SA

IBM Corporation History

1911 Computing- Tabulating- Recording Company (C-T-R).

1924, C-T-R's name was formally changed to International Business Machines Corporation.

1930s Great Depression IBM managed to grow. Thomas J. Watson, Sr., took care of his employees.

1960’s, IBM introduced the System/360, the first large "family" of computers to use interchangeable software and peripheral equipment.

1970’s. An IBM-built fare collection system is installed for BART, the San Francisco Bay Area Rapid Transit system.

1981.Birth of the IBM Personal Computer or PC, the IBM brand began to enter homes, small business and schools.

1992. The arrival of ThinkPad. Its an immediate hit and collects more than 300 awards for design and quality

1995, IBM acquires Lotus Development Corporation, and by acquisition makes IBM the world's largest software company.

2001 IBM extracted service operations into profit centers independent of selling hardware. Evolves into Services domain.

2002, for the 10th Consecutive year, IBM leads the world in generating the most U.S. patents -- with 3,288

2006 IBM announces Blue Gene/L -- the world's fastest computer.

Ongoing. Smarter Planet —enabling the world’s physical and digital networks to converge.

http://www-03.ibm.com/ibm/history/history/history_intro.html


IBM India / SA

..

Advisor to the Chairman, President, and CEO

CommunicationsSenior VP

FinanceSenior VP

& Chief Financial OfficerMark Loughridge

Human ResourcesSenior VP

LegalSenior VP

Legal & Regulatory Affairs& General Counsel

Marketing & StrategySenior VP

IBM is organized to leverage global opportunities

Board of Directors

Chairman, President & Chief Executive OfficerSam Palmisano

Innovation & TechnologyExecutive VP

GlobalBusiness Services

Senior VP

GlobalTechnology Services

Senior VP

Integrated OperationsSenior VP

Sales& Distribution

Senior VP& Group Executive

Software GroupSenior VP

& Group Executive

Systems & Technology Group

Senior VP & Group Executive

Enterprise On DemandTransformation

Senior VP

Research &Intellectual Property

Senior VP

Services DeliverySenior VP

Development &Manufacturing

Senior VP

IBM Global FinancingGeneral Manager


IBM India / SA

IBM is the 2nd largest IT company in the world, the 15th largest US company, and the 44th largest company worldwide

Americas43% Asia Pacific

21%

EMEA36%

2008 Revenue

Growth Markets 18% YTY growth in BRIC countries 10% YTY growth in 50+ other growth countries 18% of total geographic revenue


IBM India / SA

IBM Sales and Distribution delivers growth consistent with IBM’s strategy. A single view of client opportunity is shared by all brands. IBM Industries are organized to leverage global opportunities.


IBM India / SA

04: IBM acquires Daksh eServices 04: First-of-its-kind Global Service Delivery

Centre launched04: Landmark ‘Bharti’ Deal05: IBM India acquires Network Solutions

Ltd06: 1st ever analyst meet outside the US,

commit of $6 B to India07: 85000+ employees, 2nd largest

population outside the US 07: India/SA becomes a new region in Asia

Pacific 07: Telecom success continues with Idea,

Vodafone, and BSNL deals

07: Leader in India’s domestic IT market 08: Exceed $1B rev in Domestic business

IBM India/SA : Long History, Deep Roots

1951-197851: IBM sets up manufacturing unit in India 62: IBM in Sri Lanka was established

1992 - 1998

92: IBM re-enters Indian Market; JV with TATA

97: TISL Becomes Tata IBM Ltd, IGS launched

98: IRL Launched

1999 - 2003

99: IBM India Limited formally launched

00: IGF Launched01: ISL Launched03: IRL launched

Technology Center03: IGS India achieves SEI

CMMI Level 5

2004-2008


IBM India / SA

IBM India Structure

S&D GBS IRL ISL

IBM India - Global MissionsIBM India - Domestic

Shared Infrastructure Support : Finance & Operations, Controls, Procurement, HR, IT, Real Estate, Legal, Marketing,

Strategy, C&N, and Communications

ITD

NetSol BTO - Daksh

Global Delivery Labs

E&TS

Regional General ManagerRegional General Manager

STGSWGGBSGTSS e c t

o r

S e c t o r


IBM India / SA

Key Financial MetricsMetrics

TCV, Rev, GP, SG&A , PTI, Cash/DSO.

Revenue RecognitionProducts

Ts & Cs – ROL , AR, BP / End User POD Multiple element arrangements Gross Vs. Net on OEM equipment

Services POC Billing milestones & delivery schedules Installation reports & Customer signoffs

Customer Buying Total cost of Ownership : Financial estimate to help Customers assess direct &

Indirect Costs Solutions vs. Products Buying Options – Capex vs. Opex


IBM India / SA

About IBM BRANDS– STG, SWG, IGF

– GTS

– GBS


IBM India / SA

System & Technology Group ( STG )


IBM India / SA

IBM Systems & Technology Group (STG)

MissionProvide business solutions via advanced

computing power and storage capabilities.

Offerings include semi-conductor

technology and products, packaging solutions, engineering technology services.

Did you know…

IBM is the largest supplier of servers worldwide

IBM Retail Store Solutions is a market leader in the area of point-of-sale (POS) technology

Our chips are used by the three major video game providers: Sony Playstation, Microsoft Xbox and Ninentdo Wiii.

The memory chip used in Apple’s iPod was patented by IBM and sold to Apple

Key Competitors

Hewlett PackardSun Microsystems

EMCDell


IBM India / SA STG Products Overview

System i

System z

System p

System x BladeCenter

Z series are Mainframes : • Process large volume of transactions.• Multiple users over wide area network. • Crash proof (resilient), impervious to viral attacks.

Ex. : Reservation system (Air India/ Indian Airlines), Banking (RBI Clearing ) , Credit Card application (HDFC), Training to employees, vendors (Infosys, TCS, ELCOT, Anna University)

P & I Servers for super fast , powerful, flexible and reliable computing.• Real time analysis of huge number of variables. • Multiple users over Local / wide area network.• Investment and uptime requirements are lower than Z Series.

Ex. : Extensively deployed in Core Banking (Axis Bank, Canara Bank, Syndicate Bank), Insurance (Tata AIG, NIC), Weather Forecasting , R&D (TIFR, IISC – Blue Gene), Industrial Segment (HPCL, Hero Honda, ITC Ltd)

X series are Standard x86 Architecture servers deployed across Large, medium and small enterprises. • Low investment and running cost with minimum set up time. • Flexible using industry standard platforms (Intel ®and AMD ®)• Standard off the shelf applications deployed typically


IBM India / SA STG Products Overview

System Storage

IBM storage technology for data storage ( 160GB to Petabytes capacity ) as in Network access storage. • Disk access storage, Storage area network & Tape products.• Deployed in Industry where it is mandatory for records retention : like Banking, Insurance• Email hosting, Security systems at Airport for rapid scanning and imaging of passengers, luggage and storing of information for checking for terror threats

Retail Store Solutions Products are for deployed to large to medium sized retail chains to provide error free billing and fast check out of customers – STAR and Westside (Tata Group), Aditya Birla Group Retail, Metro use IBM Retail Store Solution Products

RSS ( Retail store solutions) Products


IBM India / SA

STG – Key Customers

Reserve Bank of India

• Helps in settlements : RTGS and NEFT• Paperless transaction processing

HDFC Bank

• Consolidation and enhancement of Corporate Core Banking and Cash Management.

• First India commercial bank to embrace Z series ( Mainframe ) for credit card applications

Bajaj

• Helps to speedily manage Customer demand, Inventory and production on a real time basis and at multi-locations

Tata Consultancy Services

• Helps in scheduling and utilizing resources ( employee strength of over 130,000 ) across projects and assignments.


IBM India / SA

Software Group ( SWG )


IBM India / SA

IBM Software Group (SWG)Mission

IBM software plays across the entire software spectrum which includes operating systems, middleware and enterprise applications. IBM is the middleware market share leader and at its heart remains a middleware company.

Did you know…

IBM has the second largest software business worldwide

IBM Software’s revenue driven primarily by Middleware

IBM is the foremost provider of open integration software products.

50% of Software employees were acquired through company acquisitions

IBM acquired 70 software companies since 2001

Key Competitors

OracleBMC

Computer Associates


IBM India / SA

SWGIBM Software BrandsFive middleware product lines designed to work together

Business Process Flexibility

Information On Demand

Service-Oriented Architecture (SOA)

Service Management

Empowering People

Software Lifecycle

Management


IBM India / SA

SWG – Key Customers

State Bank of India

• Second largest user of Lotus notes ( 4000+ users ) other than IBM India itself !

Cognizant technology solutions

• Largest user of Rational tools

• Enables seamless communication between Business and IT & Improves quality and customer satisfaction

Aeronautical Development agency

• PLM software technology is used to build the Light combat aircraft - Tejas

Mahindra and Mahindra

• PLM software technology is used for design of Scorpio - Xylo


IBM India / SA

SWG – Key Customers

Tata sky

• Digital television management system – backend operations , on line recharge, vendor management, on demand customer relationship services

ICICI

• User of – All 5 brands

• Cash management/Vendor management/Bank account opening system/online payment gateway.

Center for railway information system ( CRIS )

• Online reservation system

• Indian railways has about 40,000 coaches to manage. How to integrate & manage ? IBM’s Software is used in Integrated coach management

Reliance life insurance

• Entire customer management

• Ondemand portal – Customer’s login services and Insurance agents’ login services


IBM India / SA

IBM Global Financing ( IGF )


IBM India / SA

IBM Global Financing (IGF)

Mission

Generate strong return on equity and facilitate clients’ acquisition of IBM hardware, software and services.

IGF Lines of BusinessClient FinancingProvides financing (leases and loans) for the acquisition of IT solutionsGlobal Asset Recovery Services (GARS)Offers comprehensive services for used hardware, including resale and disposalCommercial FinancingProvides short term working capital for IBM Business Partners and suppliers

Did you know…

IBM reuses 88% of hardware buybacks; In

the past three years IGF recycled over 52,969 metric tons of materials

IGF represents 4% ($4B) of IBM’s revenue and 9% ($1.4B) of IBM’s pre-tax income

IGF has a total asset base of $38B (48% of IBM’s Total Assets)

Key CompetitorsClient Financing

Dell FinancialCIT

HP FinancialCommercial Finance

GE FinancialCIT

TextronDeLage Landen


IBM India / SA

What is IGF ? The world’s largest provider of IT financing

Serves 125,000+ customers

Operates in 50+ countries

Over 20 years in business

Financed close to $40 billion in IT assets since 2001.

Employs 3000 people worldwide which is less than 1% total IBM employee strength.

IBM assets make up approximately 89 percent of what IBM finances (OEM assets make up 11 percent).

IGF provides I/T financing for 91 of the 100 biggest US companies


IBM India / SA

Global Technology Services ( GTS )


IBM India / SA

IBM Global Technology Services (GTS)

Mission:IBM Global Technology Services (GTS) helps clients reduce costs, improve productivity, and assert competitive advantage with a comprehensive, world-leading portfolio of assessment, outsourcing, infrastructure, and systems integration services

Did you know… GTS integrates IBM's HW and SW into business solutions and

delivers them to our clients GTS develops and installs state of the art sports scoring systems;

GTS develops and integrates technology to allow passenger check-in on the web, by mobile phone or in the airport.

GTS serves clients such as:

– Major League Baseball teams:: web-based software application allows scouts to quickly collect, store and access information on prospects and players

– Fox Broadcasting: NCAA, NFL, NASCAR and "American Idol" - Fox now has the ability to quickly transmit digitally compressed live HD broadcasts straight into a production archive at its LA studio headquarters

– National Geographic: Gather, manager, secure, store and analyze hundreds of thousands of genetic samples from all over the world. Reveals mankind's migratory history.

Key Competitors:Accenture

CSCDeloitteInfosys,

Tata Consultancy Services (TCS)Wipro

https://www.borderstateselectric.com/wps/wcm/resources/image/4686cf4075f33d7d/suits_handshake.jpg


IBM India / SA

GTS

GTS (Global Technology Services)

SO (Strategic Outsourcing) • IBM takes ownership to run the customers IT operations for a defined/agreed scope

• Usually includes HW/SW/MA & Labour.

• We are able to deliver better results at lower cost.

• Ensures reasonably steady stream of Revenue & so a fixed/known budget to customer

ITS (Integrated Technology Services)

ITS delivers IT Infrastructure Solutions for Organizations by Architecting, building, managing and maintaining their IT

MTS (Maintenance and Technical Support)

MTS offers break fix for the IT hardware both on IBM & third party products


IBM India / SA

GTS – Key Customers

SDP (Service Delivery Platform) for Bharti

• Helps client deliver a wide range of content: SMS, MMS, video, customized value-added services to its customers

• Brings significant revenues for the client

Video Surveillance for Kolkata Police’s traffic management

• Video Surveillance and monitoring of all Traffic Junction

• GIS based tracking of vehicles and movement of traffic

Digital Video Surveillance for DLF

• Based on IBM’s Smart Surveillance System (S3)

• Enables real-time analytics and ensures greater security for client’s infrastructure

Sales Force Automation for a large FMCG company

• Replaces error-prone manual system and reduce duplication of effort and data entry

• Helps increase customer-facing time for salesmen


IBM India / SA

GTS – Key Customers

Networking for new T3 Terminal - Delhi International Airport for 2010 Commonwealth Games

• IT system Integrator for Networks. Operate & Maintain Airport Communication network

• Helps to manage Cargo, Hangers, Multi level car Parking & interface to Delhi metro railway corporation

Data Integration Project - Central Board of Direct Taxes

• Integration of all Income Tax Data across the nation – Improves speed of serviceability

• Real time PAN Migration for assesses moving out of one Jurisdiction to another

Tata motors

• On demand Portal for Customer’s product/services offerings

• On demand Infrastructure solutions for SAP/Siebel applications

• IT service desk ( Daksh )

BSNL

• Centralized Order Management & Provisioning system

• ‘Zero-touch Installation’ and Telemetry Integration with call center


IBM India / SA

Global Business Services ( GBS )


IBM India / SA

IBM Global Business Services (GBS)

Mission

GBS is focused on being the trusted business partner unmatched in driving lasting economic advantages for our clients by fusing business insight with technology.

Did you know…

GBS is the world’s largest consulting services

organization GBS often assumes the responsibility of integrating

IBM’s capabilities IBM is a market leader in application outsourcing

services. IBM is a leader in Business Intelligence, Performance

Management and CRM Services.

Key Competitors

AccentureHP/EDS

TataSipro

Infosys


IBM India / SA

GBS

Provides services around project prioritization, project portfolio management resource management, risk management, communications, change control, quality management, management reporting

Market leaders in PMO operations

Program Program ManagementManagement

Ability to structure and deliver large and complex System Integration projects across industries

Strong innovation focus

System Integration System Integration and Application and Application ManagementManagement

Strong consulting capabilities supported by a team of experienced consultants across

– Strategy and Change, Supply Chain, Financial Management, Customer Relationship Management and HCM

Consulting Consulting ServicesServices

Leader in SAP services in India Strong foothold in Oracle Applications Large delivery capabilities with global experience Experience in multiple sectors, advance solutions and upgrades

ISV servicesISV services


IBM India / SA

GBS – Key Customers

World wide Consulting/ Management of services from India• Master Services Agreement

signed with Saint Gobain to be delivered out of India

Development of SDP for Bharti

RFID implementation for HPCL

• RFID/Pervasive ePedigree solution architecture

• Graphical user interface to track progress/results of RFID/Nano-Tag verification process over the web.

Anti-Counterfeit Drug Detection and Pharma Track-and trace

• Implementation across 13 countries managed from India with simultaneous “ Go – Live”

• IBM helped to fundamentally transform its business, increase profits, elevate service levels, offer innovative new products and maintain a competitive edge

• Country’s largest Radio Frequency Identification Device ( RFID ) implementation

• Tracks LPG cylinders through its entire Supply Chain preventing unlawful diversions

RFID implementation for HPCL

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IBM India / SA

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