IBM software for everything you have to do

The Jakarta Post ,  Jakarta   |  Mon, 10/30/2006 11:20 AM  |  Life

Budi Putra, Contributor, Jakarta, bp@budiputra.com

Do be aware that today IBM is not just a hardware company anymore. It has sold its PC Division already to a Chinese computer maker Lenovo. Yes, you got right: the Big Blue has shifted its mission and vision. Just consider.

In its latest round of acquisitions, IBM continues the battle for ownership of the best software and content companies in the world.

Why does IBM want to be a service company? Is it true that the future of IT will much rely on software, content, business consulting and service? Could the other big boys deal with the IBM way?

I met Erwin Sukianto, Country Manager, Software Group, PT IBM Indonesia in his office recently. He shared his valuable insights on the company's maneuver to make sure that the company is already on the right track.

""The reason is clear. We want to offer a high value business, instead of a high volume business,"" he revealed. That's why, he explained, ""IBM is totally a service company now.""

Answering my question on the acquisition, he said that IBM tries to group all things. The outcome is almost perfect.

""Other competitors all had products, features and services like we have. IBM's latest deals already leapfrog those things.""

IBM's software business itself is growing and profitable. ""Acquisitions play a key role in IBM's software business,"" Sukianto added.

There are at least two primary reasons behind it: To get a jump-start into emerging markets and to fill gaps in its existing technology portfolio.

Through acquisitions, IBM seeks to fill decisive, missing pieces of technology into its portfolio; increase market share; and greatly spread out the reach of acquired middleware to new customers.

IBM is positioning itself for the long-term by connecting acquisitions to the high-value, innovation segments of the IT industry, such as Service Oriented Architecture, Information on Demand and Systems Management.

""So don't miss out on IBM software for everything you do. The IBM software portfolio is a comprehensive and integrated set of solutions based on open standards,"" Sukianto said. There are five brands offered: DB2, Lotus, Tivoli, WebSphere and Rational.

IBM software portfolio

DB2 Universal Database is the database management system that delivers a flexible and cost-effective database platform to build vigorous on demand business applications.

The DB2 Universal Database family also includes solutions tailored for specific needs like data warehousing or high-volume transaction systems.

Based on collaboration and human interaction, Lotus Software offers Application Development and Portal, Learning Software, Messaging, Real-time and Team Collaboration, E-forms, documents and Web Content Management and Mobile Messaging. Got Linux? You can run your messaging and collaboration on Linux with Lotus Domino.

Tivoli Software offers Security, Availability, Application Management, Business Service Management, Orchestration & Provisioning Management, Storage & Optimization and zOS. Use IBM Tivoli Composite Application Managers, for instance, for WebSphere to help manage your WebSphere applications.

Unlock the power of SOA with WebSpere easily and seamlessly. This application serves Application and Transaction Infrastructure, Application Transformation, Business Integration, Commerce, Mobile and Speech Middleware, Portals and Product Information Management.

You can use IBM Rational Method Composer to create your organization's unique SOA governance framework. Rational Software offers applications like Requirements & Analysis, Design and Construction, Software Quality, Process and Portfolio Management and Software Configuration Management.

According to Sukianto, the five major portfolios are built to cover and manage three main areas: Namely people, process and information.

""IBM realizes that no sooner do you undertake one pressing problem than another takes its place. That's why we never stop working on developing software that helps you endorse the business priorities you have today and the ones you'll face tomorrow,"" stated Sukianto.

IBM's latest round of acquisitions

IBM recently announced it has completed its acquisition of FileNet Corporation, a publicly held company based in Costa Mesa, California, in an all-cash transaction at a price of approximately $1.6 billion, or $35 per share.

According tech reporter Sarah Lacy of Business Week, the FileNet acquisition diverges from IBM's recent buying spree. This deal brings IBM key customers and market share, according to Jim Murphy of AMR Research.

IBM is the third biggest player in the document management market, frequently competing against FileNet or EMC's Documentum division for deals. With one $1.6 billion move, IBM will gobble up the number two player to jump ahead of EMC. According to IDC Research, last year EMC had 11.3% of the $3.2 billion market. FileNet and IBM combined make up some 18%.

With the recent announcement, IBM has completed 20 strategic acquisitions in support of its cross-company Information on Demand effort. Since 2001, IBM's Software Group has acquired 36 companies.

IBM also announced recently it has completed its acquisition of MRO Software, Inc., a publicly held company based in Bedford, Mass. IBM announced a definitive agreement to acquire MRO on August 3, 2006. MRO's operations will be integrated into IBM's Tivoli software business.

MRO's asset and service management software and consulting services are used by many of the world's top companies to effectively manage how they buy, maintain and retire assets in a wide variety of industries including utilities, manufacturing, energy, pharmaceutical and telecommunications.

This acquisition builds upon IBM's strategy to leverage business consulting, IT services and software to develop repeatable tools that help clients optimize and transform their businesses.

In last August, IBM and Internet Security Systems, Inc. also announced the two companies have entered into a definitive agreement for IBM to acquire Internet Security Systems, Inc., a publicly held company based in Atlanta, Georgia, in an all-cash transaction at a price of approximately $1.3 billion, or $28 per share.

This reinforces IBM's position in the rapidly growing area of Managed Security Services - the acquisition is subject to Internet Security Systems, Inc. shareholder and regulatory approvals and other customary closing conditions.

ISS provides security solutions to thousands of the world's leading companies and governments, helping to pro-actively protect against Internet threats across networks, desktops and servers. ISS software, appliances and services manage network vulnerabilities and exploits and rapidly respond in advance of potential threats.

Previously, IBM announced it had acquired Webify Solutions, an Austin, Texas-based, privately held provider of industry-specific software and services for building SOA.

This acquisition builds upon IBM's strategy to take advantage of its strengths in business consulting, IT services and software to develop high-value, repeatable tools that help companies optimize and transform their businesses.

Webify technology will be immediately integrated into IBM Software Group under the WebSphere brand -- which has experienced 32 consecutive quarters of revenue growth and double-digit revenue growth for the first two quarters of 2006. It will also be available through IBM Global Services offerings.

That's why IBM software could fill all customer needs. Everything.

The writer is journalist and author. He can be reached at his blogs theasiatech.com and 3gweek.net.

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