International Business Machines marks its 120th anniversary this year. It is the world's largest computer-based company and its financial health is stunning. Last week it reported 2007 figures that showed $98 billion in revenues and $10 billion in profits.
It has made the shift from computer maker to software and services juggernaut. In fact, its computer-manufacturing arm is the only area that's losing money.
According to a list in Wikipedia, IBM has snapped up more than 50 companies since the year 2000 and Ottawa has been a favourite hunting ground. Included in that list of Ottawa firms are: Rational Software, Tarian Software, Object Technology International, Watchfire and, most recently, Cognos.
Since 2003, IBM has operated a software lab in Ottawa that added more than 100 employees last year. Software is the most profitable part of IBM's operations and along with business services the two sectors account for 80 per cent of the firm's profits.
Last year IBM marked 90 years in Canada and its track record is that it spends money on the firms it buys. IBM plans to double Cognos' current sales of $1 billion a year and do that within three years.
IBM also spends a lot of money to better understand its customers. Last month, IBM released its results of talking to nearly 17,000 consumers. Some of what they learned includes:
70 per cent of customers said that environmental considerations are an important factor in choosing products;
66 per cent of teens text message friends for advice while they are out shopping;
60 per cent spend between one and four hours per day on the Internet. That's just a little less than the time they spent watching television;
69 per cent have little trust over food industry claims re: health and wellness
IBM says in 2007 the "Omni Consumer" came to the forefront: people who are skeptical, empowered and connected by technology. We are demanding and seeking more information about the products we buy.
In the late '60s, IBM gained the nickname Big Blue. It's not clear where it came from, whether it was the colour of its logo, a dress code that leaned towards blue suits, or the blue covers on their mainframe computers.
One thing is clear. Big Blue really is big and promises to get a lot bigger.
