IBM has turned its attention to software and services to drive new business opportunities in emerging markets. The company has restructured its software business in two key areas: Software Solutions led by Senior Vice President Mike Rhodin, and Software Middleware led by Senior Vice President Robert LeBlanc.
Software Solutions focuses on high growth opportunities, like integrated offerings for business analytics, collaboration and industry solutions, while Software Middleware includes Information Management, Tivoli, Rational and WebSphere. According to Forrester research, IBM is retaining its position as a leading provider of middleware in the marketplace.
IBM’s strategy has diversified to accommodate new growth areas within the software division, such as Smarter Planet, data center transformation, cloud computing and business analytics. The transformation reflects the increased demand for these services.
In the last decade, software revenue has doubled and its profits tripled — driving more than $8 billion in profits in 2009 alone. Furthermore, IBM has acquired nearly 100 companies, including 65 software companies, to strategically enter new businesses or build out existing ones.
The IBM Software division contributes more than 42% to IBM’s profits, with more than 65,000 employees dedicated to the IBM software business around the globe.
