I.

Introduction of IBM
International Business Machines Corporation (IBM) is an American multinational technology
corporation headquartered in Armonk, New York, with operations in over 171 countries. The
company began in 1911, founded in Endicott, New York, by trust businessman Charles Ranlett
Flint, as the Computing-Tabulating-Recording Company (CTR) and was renamed "International
Business Machines" in 1924. IBM is incorporated in New York.
IBM produces and sells computer hardware, middleware and software, and
provides hosting and consulting services in areas ranging from mainframe
computers to nanotechnology. IBM is also a major research organization, holding the record for
most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years.
Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk
drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC
barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by
the System/360, was the dominant computing platform during the 1960s and 70s.
IBM is one of 30 companies included in the Dow Jones Industrial Average and one of the world's
largest employers, with over 282,100 employees as of December 2021.

II. Two biggest opportunities of IBM

1. Expanding product portfolio, diverse opportunity areas like cloud, business consulting,
sustainable business projects etc.
IBM has been trying endlessly to expand its services, one such service is IT consultancy. If a big
name like IBM ventures into something of this sort and puts money into it, it can pay off really well
in the long run. IBM already has an established reputation that people can catch onto very quickly.
IBM can take advantage of its strong competency in acquisition for the diversification of
opportunity sectors, including the cloud, business consultancy, and sustainable business ventures,
etc. A firm makes an acquisition when it buys the majority or all of the shares of another company
in order to take over that business. The acquirer can make choices about newly acquired assets
without the consent of the target company's other shareholders if they buy more than 50% of the
target company's shares and other assets. Since IBM acquires or investes in other companies, they
can own these firms’ products which helps IBM expand product portfolio and participate in other
potential markets.
IBM has made 157 acquisitions and 28 investments. The company has spent over $ 69.53B for the
acquisitions. IBM has invested in multiple sectors such as IT Operations, Cybersecurity, Business
Intelligence and more. Since 2001, IBM has acquired more than 160 firms, paying somewhere from
a few hundred thousand dollars to several billions of dollars for each one. The great majority of such
transactions turned out to be strategically pointless, and/or IBM incorporated the purchased
technology so thoroughly into its own products that they were either rendered invisible or of no
longer of use to the target audience. IBM has acquired companies in strategic areas including
analytics, cloud, security and commerce. This has led to substantial growth in software and
consulting offerings from IBM and established the company as a leading software and consulting
provider for enterprises. IBM also expects to invest $20 billion over the next two years on
acquisitions to strengthen its product portfolio even further. Company’s competence in successful
acquisitions is the key advantage other companies, like HP, currently lack.

IBM has the opportunity to acquire more companies and to partner with many others. This can
prove to be a very good option considering the current situation. Previous acquisitions have
benefitted IBM significantly and contributed majorly to improving its market share. IBM provides
various services (cloud, security and infrastructure) and enterprise solutions (servers, networking
and storage), which are the most profitable IBM’s businesses at the moment. The company should
focus on growing these divisions as they promise better growth opportunities and higher profit
margins.
2. Data Analytics
The big data and analytics market reached a value of nearly $73,287.6 million in 2020, having
increased at a compound annual growth rate (CAGR) of 10.2% since 2015. The market is expected
to grow from $73,287.6 million in 2020 to $135,706.1 million in 2025 at a rate of 13.1%. The
market is then expected to grow at a CAGR of 13.2% from 2025 and reach $252,361.3 million in
2030.
The dashboard and data visualization sector, self-service tools, data mining and warehousing,
reporting, and other analytics tools comprise the analytics tools market for big data and analytics.
When the big data and analytics industry was broken down into analytics tools, the reports market
accounted for 31.3 percent of the whole market in 2020. The market for big data and analytics is
predicted to develop at a CAGR of 15.7% between 2020 and 2025, with the self-service tools
category expected to have the greatest growth.
The big data and analytics market is divided into on-premise and cloud deployment modes. In terms
of big data and analytics market segments by deployment mode, the on-premise market accounted
for 69.4% of the total in 2020. The BFSI, retail, manufacturing, IT and telecom, government,
healthcare, utilities, and other end-use sectors are the market segments for big data and analytics.
With a share of 25.5 percent in the overall big data and analytics market in 2020, the other end-use
industries market was the largest subsegment. The healthcare category is anticipated to see the
greatest growth going ahead in the big data and analytics market, with a CAGR of 14.5 percent
between 2020 and 2025. With 22.6 percent of the total in 2020, the risk and credit analytics market
accounted for the majority of the big data and analytics market by application. In the big data and
analytics market split by application, the consumer analytics sector is anticipated to develop at the
quickest rate going ahead, with a CAGR of 15.4% from 2020 to 2025.
The customer analytics, supply chain analytics, marketing analytics, pricing analytics, geographical
analytics, workforce analytics, risk & credit analytics, transportation analytics, and other
applications categories make up the big data and analytics market.
To take advantage of the opportunities, IBM should focus on big data-as-a-service (bdaas), hybrid
clouds, investing in edge computing, establish operations in emerging markets, provide
competitively priced offerings in low-income countries, partnerships with end-users, increase
visibility through websites, leverage social media to maximize reach and focus on industries.
II. Two biggest threats to IBM
1. The price of software products and services is quite high compared to competitors
With the goal of providing quality products and solutions with perfect support services, IBM always
holds the view that price is not a competitive advantage. IBM's products and solutions are always
perceived by customers as being rarely inferior to competitors. However, this is easily the reason
why IBm loses its competitiveness compared to other low-cost software companies in some
developing markets. IBM faces high competition in the software segment from low-cost companies
that are also able to offer high quality products. In this regard, the company can lose its
competiveness in the software segment if it is not able to lower its costs.
In IDC's 2013 report, IBM achieved revenue of $2.97 billion and closely followed HP with 23.6%
market share. IBM's revenue fell more than 10% year-over-year on the threshold of a technology
refresh cycle, and within more than two years, IBM's server revenue fell more than 19%. Servers
accounted for about 15% of IBM's total revenue in 2012.
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2. An increase in cyber crime
Cybercrime is a crime that involves a computer and a network. The computer may have been used
in the commission of a crime, or it may be the target. Cybercrime may harm someone's security and
financial health. An increase in cyber crime introduces new problems into the industry. It also
exposes weaknesses in the information infrastructures. Cyber crime is a dangerous threat to
information technology companies. Cyber assaults are estimated to cost firms up to $400 billion
annually by the British insurance company Lloyd's, including direct damage and post-attack
interruption to regular operations. According to some vendor and media estimates, the cost of
cybercrime might reach $500 billion or more. According to the World Economic Forum (WEF), a
sizable fraction of cybercrime remains unreported, especially industrial espionage, where access to
private papers and data is hard to detect.
The 2022 report describes how manufacturing, which was 2021's most attacked industry (23
percent), dethroned financial services and insurance after a long reign as the industry with the
highest rate of attacks. Ransomware actors attempted to "fracture" the backbone of global supply
chains with these attacks. Attackers bet on the cascading impact that disruption on industrial
businesses would have on their downstream supply chains, forcing them to be pressured into paying
the ransom. This industry has seen more ransomware assaults than any other industry. Assaults
against the industrial sector accounted for a startling 47% of attacks, with the victims' businesses
unable or unwilling to fix the vulnerabilities that led to the attacks. This underscores the necessity
for enterprises to give vulnerability management first priority.
Ginni Rometty, IBM Corp.’s Chairman, President and CEO, had the following to say at the IBM
Security Summit in New York City earlier this year, “We believe that data is the phenomenon of our
time. It is the world’s new natural resource. It is the new basis of competitive advantage, and it is
transforming every profession and industry. If all of this is true – even inevitable – then cyber crime,
by definition, is the greatest threat to every profession, every industry, every company in the world.”
Cyber incidents will damage their reputations – which can have a negative impact on revenues,
company valuation when raising capital, customer acquisition and retention, and their ability to
recruit top talent. For example, cloud platform products expose the firm and its clientele to potential
cyber attacks and related risks.
Cybercrime will lead to a huge losses to firms, especially technological companies such as IBM.
IBM customers will have their information leaked or stolen. Therefore, customers will gradually
lose faith in the products of that company. This will reduce the company's sales revenue, adversely
affect the company's reputation.
"Cybercriminals usually chase the money. Now with ransomware they are chasing leverage," said
Charles Henderson, Head of IBM X-Force. "Businesses should recognize that vulnerabilities are
holding them in a deadlock – as ransomware actors use that to their advantage. This is a non-binary
challenge. The attack surface is only growing larger, so instead of operating under the assumption
that every vulnerability in their environment has been patched, businesses should operate under an
assumption of compromise, and enhance their vulnerability management with a zero trust strategy."

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