International Business Machines (IBM) (NYSE: IBM) is an American multinational t

echnology and consulting firm headquartered in Armonk, New York. IBM manufacture
s and sells computer hardware and software, and it offers infrastructure, hostin
g and consulting services in areas ranging from mainframe computers to nanotechn
ology.[4]
The company was founded in 1911 as the Computing Tabulating Recording Corporatio
n, following a merger of the Computer Scale Company of America and the Internati
onal Time Recording Company with the Tabulating Machine Company. CTR adopted the
name International Business Machines in 1924, using a name previously designate
d to CTR's subsidiary in Canada and later South America. Its distinctive culture
and product branding has given it the nickname Big Blue.
In 2010, IBM was ranked the 20th largest firm in the U.S. by Fortune and the 33r
d largest globally by Forbes.[5][6] Other rankings that year include #3 green co
mpany (Newsweek), #1 company for leaders (Fortune), #2 best global brand (Interb
rand), #15 most admired company (Fortune), and #18 most innovative company (Fast
Company).[7] IBM employs almost 400,000 employees (called "IBMers" by IBM) in o
ver 200 countries, with occupations including scientists, engineers, consultants
, and sales professionals.[8]
IBM holds more patents than any other U.S.-based technology company and has nine
research laboratories worldwide.[9] Its employees have garnered five Nobel Priz
es, four Turing Awards, nine National Medals of Technology, and five National Me
dals of Science.[10] The company has undergone several organizational changes si
nce its inception, acquiring companies like SPSS (2009) and PwC consulting (2002
) and spinning off companies like SAP (1972) and Lexmark (1991).
Main article: History of IBM
1880-1929

Thomas J. Watson (pictured here in 1917) served as CEO of IBM for 38 years.
Starting in the 1880s, various technologies came into existence that would form
part of IBM's predecessor company. Julius E. Pitrap patented the computing scale
in 1885,[11] Alexander Dey invented the dial recorder in 1888,[12] and a year l
ater Herman Hollerith patented the Electric Tabulating Machine,[13] and Willard
Bundy invented a time clock to record a worker's arrival and departure time on a
paper tape.[14] On June 16, 1911, these technologies and their respective compa
nies were merged by Charles F. Flint to form the Computing-Tabulating-Recording
Company (C-T-R).[15] The New York City-based company had 1,300 employees and off
ices and plants in Endicott and Binghamton, New York; Dayton, Ohio; Detroit, Mic
higan; Washington, D.C.; and Toronto, Ontario. It manufactured and sold machiner
y ranging from commercial scales and industrial time recorders to meat and chees
e slicers, along with tabulators and punched cards.
Flint recruited Thomas J. Watson, Sr., from the National Cash Register Company t
o help lead the company in 1914.[15] Watson implemented "generous sales incentiv
es, a focus on customer service, an insistence on well-groomed, dark-suited sale
smen and an evangelical fervor for instilling company pride and loyalty in every
worker".[16] His favorite slogan, "THINK," became a mantra for C-T-R's employee
s, and within 11 months of joining C-T-R, Watson became its president.[16] The c
ompany focused on providing large-scale, custom-built tabulating solutions for b
usinesses, leaving the market for small office products to others. During Watson
's first four years, revenues more than doubled to $9 million and the company's
operations expanded to Europe, South America, Asia, and Australia.[16] On Februa
ry 14, 1924, C-T-R was renamed the International Business Machines Corporation (
IBM),[7] citing the need to align its name with the "growth and extension of [it
s] activities".[17]
1930-1979
NASA researchers using a IBM type 704 electronic data processing machine in 1957
In 1935, IBM was contracted by the U.S. Government to maintain the employment re
cords for 26 million people pursuant to the Social Security Act. In 1938, the IB
M World Headquarters Building, located at 590 Madison Avenue in New York, New Yo
rk, was dedicated.
In 1952, Thomas J. Watson, Jr., became president of the company, ending almost 4
0 years of leadership by his father. In 1956, Arthur L. Samuel of IBM's Poughkee
psie, New York, laboratory programs an IBM 704 to play checkers using a method i
n which the machine can "learn" from its own experience. It is believed to be th
e first "self-learning" program, a demonstration of the concept of artificial in
telligence. In 1957, IBM developed the FORTRAN (FORmula TRANslation) scientific
programming language. In 1961, Thomas J. Watson, Jr., was elected chairman of th
e board and Albert L. Williams became president of the company. IBM develops the
SABRE (Semi-Automatic Business-Related Environment) reservation system for Amer
ican Airlines.
In 1963, IBM employees and computers helped NASA track the orbital flight of the
Mercury astronauts, and a year later, the company moved its corporate headquart
ers from New York City to Armonk, New York. The later half of that decade saw IB
M continue its support of space exploration, with IBM participating in the 1965
Gemini flights, the 1966 Saturn flights, and the 1969 mission to land a man on m
oon. In 1972, IBM spun off software company SAP.
One of IBM's Blue Gene supercomputers, which were awarded the National Medal of
Technology and Innovation by U.S. President Barack Obama on September 18, 2009
1980-present
This section requires expansion.
IBM has engaged in several M&A activities as well as several divestitures in the
past few decades. In 1991, IBM sold Lexmark, and in 2002, it acquired PwC consu
lting. In 2003, IBM initiated a project to rewrite its company values. Using its
Jam technology, the company hosted Internet-based online discussions on key bus
iness issues with 50,000 employees over 3 days. The discussions were analyzed by
sophisticated text analysis software (eClassifier) to mine online comments for
themes. As a result of the 2003 Jam, the company values were updated to reflect
three modern business, marketplace and employee views: "Dedication to every clie
nt's success", "Innovation that matters - for our company and for the world", "T
rust and personal responsibility in all relationships".[18] In 2004, another Jam
was conducted during which 52,000 employees exchanged best practices for 72 hou
rs. They focused on finding actionable ideas to support implementation of the va
lues previously identified.[19]
In 2005 the company sold Lenovo, and in 2009, it acquired SPSS. Later in 2009, I
BM's Blue Gene supercomputing program was awarded the National Medal of Technolo
gy and Innovation by U.S. President Barack Obama.
In 2011, IBM gained worldwide attention for its artificial intelligence program
Watson, which was exhibitioned on Jeopardy! against game show champions Ken Jenn
ings and Brad Rutter.
Corporate affairs
IBM's headquarter complex is located in Armonk, Town of North Castle, New York,
United States.[20][21][22] The 283,000 square foot IBM building has three levels
of custom curtainwall. The building is located on a 25 acre site.[23] IBM has b
een headquartered in Armonk since 1964.[citation needed]
The company has nine research labs worldwide—Almaden, Austin, Brazil, China, Haifa
, India , Tokyo, Watson (New York), and Zurich—with Watson (dedicated in 1961) ser
ving as headquarters for the research division and the site of its annual meetin
g. Other campus installations include towers in Montreal, Paris, and Atlanta; so
ftware labs in Raleigh-Durham, Rome and Toronto; buildings in Chicago, Johannesb
urg, and Seattle; and facilities in Hakozaki and Yamato. The company also operat
es the IBM Scientific Center, the Hursley House, the Canada Head Office Building
, IBM Rochester, and the Somers Office Complex
IBM's Board of Directors, with 14 members, is responsible for the overall manage
ment of the company. With Cathie Black's resignation from the board in November
2010, the remaining 13 members (along with their affiliation and year of joining
the board) are as follows: Alain J. P. Belda '08 (Alcoa), William R. Brody '07
(Salk Institute / Johns Hopkins University), Kenneth Chenault '98 (American Expr
ess), Michael L. Eskew '05 (UPS), Shirley Ann Jackson '05 (Rensselaer Polytechni
c Institute), Andrew N. Liveris '10 (Dow Chemical), W. James McNerney, Jr. '09 (
Boeing), James W. Owens '06 (Caterpillar), Samuel J. Palmisano '00 (IBM), Joan S
pero '04 (Doris Duke Charitable Foundation), Sidney Taurel '01 (Eli Lilly), and
Lorenzo Zambrano '03 (Cemex).[24]

Corporate recognition and brand

In 2010, IBM was ranked the 20th largest firm in the U.S. by Fortune and the 33r
d largest globally by Forbes.[5][6] Other rankings for 2010 include the followin
g:[7]
• #1 company for leaders (Fortune)
• #2 best global brand (Interbrand)
• #3 green company (Newsweek)[25]
• #15 most admired company (Fortune)
• #18 most innovative company (Fast Company)
For 2010, IBM's brand was valued at $64.7 billion.[26]
Working at IBM
In 2010, IBM employed 105,000 workers in the U.S., a drop of 30,000 since 2003,
and 75,000 people in India, up from 9,000 seven years previous.[27]
IBM's employee management practices can be traced back to its roots. In 1914, CE
O Thomas J. Watson boosted company spirit by created employee sports teams, host
ing family outings, and furnishing a company band. In 1924, the Quarter Century
Club, which recognizes employees with 25 years of service, was organized and the
first issue of Business Machines, IBM's internal publication, was published. In
1925, the first meeting of the Hundred Percent Club, composed of IBM salesmen w
ho meet their quotas, convened in Atlantic City, New Jersey.
IBM was among the first corporations to provide group life insurance (1934), sur
vivor benefits (1935) and paid vacations (1937). In 1932 IBM created an Educatio
n Department to oversee training for employees, which oversaw the completion of
the IBM Schoolhouse at Endicott in 1933. In 1935, the employee magazine Think wa
s created. Also that year, IBM held its first training class for women systems s
ervice professionals. In 1942, IBM launched a program to train and employ disabl
ed people in Topeka, Kansas. The next year classes begin in New York City, and s
oon the company is asked to join the President's Committee for Employment of the
Handicapped. In 1946, the company hired its first black salesman, 18 years befo
re the Civil Rights Act of 1964. In 1947, IBM announces a Total and Permanent Di
sability Income Plan for employees. A vested rights pension is added to the IBM
retirement plan.
In 1952, Thomas J. Watson, Jr., published the company's first written equal oppo
rtunity policy letter, one year before the U.S. Supreme Court decision in Brown
vs. Board of Education and 11 years before the Civil Rights Act of 1964. In 1961
, IBM's nondiscrimination policy is expanded to include sex, national origin, an
d age. The following year, IBM hosted its first Invention Award Dinner honoring
34 outstanding IBM inventors; and in 1963, the company named the first eight IBM
Fellows in a new Fellowship Program that recognizes senior IBM scientists, engi
neers and other professionals for outstanding technical achievements.
On September 21, 1953, Thomas Watson, Jr., the company's president at the time,
sent out a controversial letter to all IBM employees stating that IBM needed to
hire the best people, regardless of their race, ethnic origin, or gender. He als
o publicized the policy so that in his negotiations to build new manufacturing p
lants with the governors of two states in the U.S. South, he could be clear that
IBM would not build "separate-but-equal" workplaces.[28] In 1984, IBM added sex
ual orientation to its nondiscrimination policy. The company stated that this wo
uld give IBM a competitive advantage because IBM would then be able to hire tale
nted people its competitors would turn down.[29]
IBM was the only technology company ranked in Working Mother magazine's Top 10 f
or 2004, and one of two technology companies in 2005.[30][31] On October 10, 200
5, IBM became the first major company in the world to commit formally to not usi
ng genetic information in employment decisions. The announcement was made shortl
y after IBM began working with the National Geographic Society on its Genographi
c Project.
IBM provides same-sex partners of its employees with health benefits and provide
s an anti-discrimination clause. The Human Rights Campaign has consistently rate
d IBM 100% on its index of gay-friendliness since 2003 (in 2002, the year it beg
an compiling its report on major companies, IBM scored 86%).[32] In 2007 and aga
in in 2010, IBM UK was ranked first in Stonewall's annual Workplace Equality Ind
ex for UK employers.[33]
The company has traditionally resisted labor union organizing,[34] although unio
ns represent some IBM workers outside the United States. In 2009, the Unite unio
n stated that several hundred employees joined following the announcement in the
UK of pension cuts that left many employees facing a shortfall in projected pen
sions.[35]
A dark (or gray) suit, white shirt, and a "sincere" tie[36] was the public unifo
rm for IBM employees for most of the 20th century. During IBM's management trans
formation in the 1990s, CEO Louis V. Gerstner, Jr. relaxed these codes, normaliz
ing the dress and behavior of IBM employees to resemble their counterparts in ot
her large technology companies. Since then IBM's dress code is business casual a
lthough employees often wear formal clothes during client meetings.[citation nee
ded]
Research
An anechoic chamber inside IBM's Yamato research facility
In 1945, The Watson Scientific Computing Laboratory was founded at Columbia Univ
ersity in New York, New York. The renovated fraternity house on Manhattan's West
Side was used as IBM's first laboratory devoted to pure science. The lab was th
e forerunner of IBM's Research Division, which today operates research facilitie
s around the world.
In 1966, IBM researcher Robert H. Dennard invented Dynamic Random Access Memory
(DRAM) cells, one-transistor memory cells that store each single bit of informat
ion as an electrical charge in an electronic circuit. The technology permits maj
or increases in memory density, and is widely adopted throughout the industry wh
ere it remains in widespread use today.
IBM has been a leading proponent of the Open Source Initiative, and began suppor
ting Linux in 1998.[37] The company invests billions of dollars in services and
software based on Linux through the IBM Linux Technology Center, which includes
over 300 Linux kernel developers.[38] IBM has also released code under different
open source licenses, such as the platform-independent software framework Eclip
se (worth approximately US$40 million at the time of the donation),[39] the thre
e-sentence International Components for Unicode (ICU) license, and the Java-base
d relational database management system (RDBMS) Apache Derby. IBM's open source
involvement has not been trouble-free, however (see SCO v. IBM).
Selected current projects
developerWorks is a website run by IBM for software developers and IT profession
als. It contains how-to articles and tutorials, as well as software downloads an
d code samples, discussion forums, podcasts, blogs, wikis, and other resources f
or developers and technical professionals. Subjects range from open, industry-st
andard technologies like Java, Linux, SOA and web services, web development, Aja
x, PHP, and XML to IBM's products (WebSphere, Rational, Lotus, Tivoli and Inform
ation Management). In 2007, developerWorks was inducted into the Jolt Hall of Fa
me.[40]
alphaWorks is IBM's source for emerging software technologies. These technologie
s include:
• Flexible Internet Evaluation Report Architecture – A highly flexible architecture
for the design, display, and reporting of Internet surveys.
• IBM History Flow Visualization Application – A tool for visualizing dynamic, evolv
ing documents and the interactions of multiple collaborating authors.
• IBM Linux on POWER Performance Simulator – A tool that provides users of Linux on
Power a set of performance models for IBM's POWER processors.
• Database File Archive And Restoration Management – An application for archiving an
d restoring hard disk drive files using file references stored in a database.
• Policy Management for Autonomic Computing – A policy-based autonomic management in
frastructure that simplifies the automation of IT and business processes.
• FairUCE – A spam filter that verifies sender identity instead of filtering content
.
• Unstructured Information Management Architecture (UIMA) SDK – A Java SDK that supp
orts the implementation, composition, and deployment of applications working wit
h unstructured data.
• Accessibility Browser – A web-browser specifically designed to assist people with
visual impairments, to be released as open source software. Also known as the "A
-Browser," the technology will aim to eliminate the need for a mouse, relying in
stead completely on voice-controls, buttons and predefined shortcut keys.
Virtually all console gaming systems of the latest generation use microprocessor
s developed by IBM. The Xbox 360 contains a PowerPC tri-core processor, which wa
s designed and produced by IBM in less than 24 months.[41] Sony's PlayStation 3
features the Cell BE microprocessor designed jointly by IBM, Toshiba, and Sony.
Nintendo's seventh-generation console, Wii, features an IBM chip codenamed Broad
way. The older Nintendo GameCube utilizes the Gekko processor, also designed by
IBM.
In May 2002, IBM and Butterfly.net, Inc. announced the Butterfly Grid, a commerc
ial grid for the online video gaming market.[42] In March 2006, IBM announced se
parate agreements with Hoplon Infotainment, Online Game Services Incorporated (O
GSI), and RenderRocket to provide on-demand content management and blade server
computing resources.[43]
IBM announced it will launch its new software, called "Open Client Offering" whi
ch is to run on Linux, Microsoft Windows and Apple's Mac OS X. The company state
s that its new product allows businesses to offer employees a choice of using th
e same software on Windows and its alternatives. This means that "Open Client Of
fering" is to cut costs of managing whether to use Linux or Apple relative to Wi
ndows. There will be no necessity for companies to pay Microsoft for its license
s for operating systems since the operating systems will no longer rely on softw
are which is Windows-based. One alternative to Microsoft's office document forma
ts is the Open Document Format software, whose development IBM supports. It is g
oing to be used for several tasks like: word processing, presentations, along wi
th collaboration with Lotus Notes, instant messaging and blog tools as well as a
n Internet Explorer competitor – the Mozilla Firefox web browser. IBM plans to ins
tall Open Client on 5% of its desktop PCs. The Linux offering has been made avai
lable as the IBM Client for Smart Work product on the Ubuntu and Red Hat Enterpr
ise Linux platforms.[44]
UC2 (Unified Communications and Collaboration) is an IBM and Cisco Systems joint
project based on Eclipse and OSGi. It will offer the numerous Eclipse applicati
on developers a unified platform for an easier work environment. The software ba
sed on UC2 platform will provide major enterprises with easy-to-use communicatio
n solutions, such as the Lotus based Sametime. In the future the Sametime users
will benefit from such additional functions as click-to-call and voice mailing.[
45]
Redbooks are publicly available online books about best practices with IBM produ
cts. They describe the products features, field experience and dos and don'ts, w
hile leaving aside marketing buzz. Available formats are Redbooks, Redpapers and
Redpieces.
Internal programs
Extreme Blue is a company initiative that uses experienced IBM engineers, talent
ed interns, and business managers to develop high-value technology. The project
is designed to analyze emerging business needs and the technologies that can sol
ve them. These projects mostly involve rapid-prototyping of high-profile softwar
e and hardware projects.[46]
In May 2007, IBM unveiled Project Big Green, a re-direction of $1 billion per ye
ar across its businesses to increase energy efficiency.
On November 2008, IBM’s CEO, Sam Palmisano, during a speech at the Council on Fore
ign Relations, outlined a new agenda for building a Smarter Planet.[47] In addit
ion, an official company blog exists. Smarter Planet @ IBM
Company logo and nickname

1924–1946
1947–1956
1956–1972
1972–present
IBM s current "8-bar" logo was designed in 1972 by graphic designer Paul Rand.[5
5] Logos designed in the 1970s tended to be sensitive to the technical limitatio
ns of photocopiers, which were then being widely deployed. A logo with large sol
id areas tended to be poorly copied by copiers in the 1970s, so companies prefer
red logos that avoided large solid areas. The 1972 IBM logos are an example of t
his tendency. With the advent of digital copiers in the mid-1980s this technical
restriction had largely disappeared; at roughly the same time, the 13-bar logo
was abandoned for almost the opposite reason – it was difficult to render accurate
ly on the low-resolution digital printers (240 dots per inch) of the time.
Big Blue is a nickname for IBM. There are several theories explaining the origin
of the name. One theory, substantiated by people who worked for IBM at the time
, is that IBM field representatives coined the term in the 1960s, referring to t
he color of the mainframes IBM installed in the 1960s and early 1970s. "True Blu
e" was a term used to describe a loyal IBM customer, and business writers later
picked up the term.[56][57] Another theory suggests that Big Blue simply refers
to the Company s logo. A third theory suggests that Big Blue refers to a former
company dress code that required many IBM employees to wear only white shirts an
d many wore blue suits.[56][58] In any event, IBM keyboards, typewriters, and so
me other manufactured devices have played on the "Big Blue" concept, using the c
olor for enter keys and carriage returns. IBM has also used blue logos since 194
7, making blue the defining color of the company s corporate design, which might
be another, more plausible reason for the term.