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IBM Accelerates Investments in Emerging Markets

July 28, 2008

IBM (NYSE: IBM) today announced it has opened three centers of excellence in China, Mexico and India to provide clients with access to the latest technologies and processes in banking, retail and service management arenas.

IBM’s focus on emerging markets — or countries with high economic growth potential — has accelerated. These countries represented 18 percent of IBM’s geographic revenue in the second quarter of 2008, and together grew 21 percent as reported. In addition, the Brazil, Russia, India and China subset grew 31 percent in the second quarter and were led by explosive growth in India.

“These results demonstrate that IBM has the ability to thrive in emerging markets,” said Bruno Di Leo, IBM general manager, Growth Markets. “Our continued investments give IBM a competitive edge; global reach and scale; and services and products that deliver genuine value to clients wherever they do business.”

Worldwide Banking Center of Excellence in China

IBM today announced that it will establish a branch of its Worldwide Banking Center of Excellence in Shanghai to support China’s banking clients and to address their issues in core banking systems and payments. The Banking Center will bring together world-class business and technology experts to design and implement next generation payment and core banking systems for China’s leading banks.

The Banking Center of Excellence in China will be staffed with a worldwide team of banking experts and leverage assets, infrastructures and deep skills from across IBM to develop local banking value-add offerings, form strategy for payment and core system renovation, and improve performance and scalability of existing architecture. The center will offer high-end, banking industry related expertise to tackle critical customer needs and to bring global reach to the local banking clients. IBM’s Worldwide Banking Center of Excellence has already been working with many of the leading banks in China to help modernize their back-office operations.

With the IBM Worldwide Banking Center of Excellence in China and other existing IBM resources such as the China System Center, the local banks will benefit from IBM’s ability to quickly assemble a targeted set of skills, capabilities and business frameworks to meet the clients’ exact requirements — from end-to-end services and technologies, industry expertise, to Independent Software Vendors (ISV) collaboration. Banks will work with experts from IBM and its ISV partners to leverage industry standards including International Organization for Standardization (ISO) messaging formats, Service Oriented Architecture (SOA), IBM’s world-class middleware, and the discipline and models of Information Framework (IFW) to support specific renovation solutions.

The new Banking Center of Excellence in China will join an existing global network of IBM banking centers that were established in 2007. The network includes centers at IBM’s Silicon Valley Lab in California, operated by the IBM High Performance On Demand Solutions (HiPODS) Lab; the IBM Poughkeepsie Lab in New York; the IBM Software Solutions Lab in Seoul, Korea, Hanoi, Vietnam and Johannesburg, South Africa. Together, the centers represent a multi-million dollar investment by IBM as a commitment to help worldwide banking clients become successful.

Guadalajara Retail Innovation Center

IBM today announced the opening of its first retail innovation center in Latin America, a cross-industry facility designed to help companies enhance the shopping experience for consumers. The center provides clients a place to learn about, create and test in-store retail solutions that can help them build advocacy and loyalty for their brands. At the new retail center, IBM will showcase some of its most advanced, industry-leading, point-of-sale and self-checkout technologies in stores, as well as in the mobile and e-commerce space.

The Guadalajara Retail Innovation Center is equipped with a consolidated and experienced team of consultants and professionals specializing in meeting and evaluating client needs to achieve the best solution that allows them to create demand generation and customer strategies. The GRIC has a solutions center with demos, trend maps and solution briefings through IT updates and proofs of concept, designed to provide live demos of software, hardware and services solutions using last generation technology.

IBM Service Management Center of Excellence in India

IBM previously announced the opening of the IBM Service Management Center of Excellence in India which will act as the regional hub for IBM Tivoli service management software and strategy. The Center has been designed to develop specialized focus and skills in high value areas such as telecom, security, automation and asset management. This first-of-its-kind center has been established in Pune.

The Center will be staffed by IBM Service Management experts from around the world and will provide infrastructure and resources for enablement and education; client engagement support to sales team and business partners; and facilities for proof of concept, demos and workshops. It also will offer certification and joint education programs with local universities, access to industry models, best practices and proven methodologies based on IBM’s worldwide service management experience.

IBM’s approach to service management is based on delivering integration of software and services to provide organizations better visibility into IT assets and applications across an entire business, while also enabling better security, compliance management and automation. Service management addresses the uncertainty faced by organizations as they manage faster, broader and more uncertain change. Built on an open, service oriented architecture (SOA), IBM’s approach to service management helps organizations improve IT services and align them with business goals while keeping costs low.

About IBM

For more information, visit www.ibm.com/services or www.ibm.com/itsm.

 Media Contacts: Jenna Gable IBM Communications (917) 472-3512 gablej@us.ibm.com  Mark Guan IBM Communications (914) 766-1658 markguan@us.ibm.com

SOURCE: IBM




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