IBM at JP Morgan Conference Notes

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Martin Schroeter – SVP and CFO

Productivity for clients is a revenue reduction for us

“In order to deliver productivity, and consistently, right, productivity for our clients is a revenue reduction for us, right, and we know that, that’s the business furor and that money then goes in to fuel these new areas”

The appeal of the cloud is agility

” hybrid cloud is a feeling, Cloud is a feeling for clients, there’s certainly an economic element to this. But it’s really about agility. So when we looked at how we delivered softwares for years and years as an example. And I’m not a technical, but think about the kinds of work we do for our clients, we run their most important processes and so every six months, we would say, all right we’ve got to all those new function. So we’ll take your servers down on Sunday, we’ll put it all in and by Monday you’ll be running the new versions again. That’s kind of the old world, you don’t do that twice a year any more now, with our clients and the hybrid environment, we’re delivering new functions every day. And that’s why clients find that cloud that model so appealing.”

We don’t see cognitive technologies automating anything away

“we don’t see the application of cognitive technologies as replacing or automating anything away. What it really does is it provides a better basis by which people can make decisions”

We’ve had to acquire data in order to demonstrate the benefit of cognitive

“”we’ve always been an inquisitive company, alright, we’ve bought a 150 companies over the last 15 years or so, and we’ve always used acquisitions as a way to either advance a lead we have some place as a way that is just on the edge of where we play today, so we can expand if you will the opportunities we have with our clients, and what we noticed particularly in the cognitive world, what we noticed is that, in order to realize the benefit of cognitive and to expand in to some of these new industries, you really do need to bring some data to the table, and I think healthcare is a good example of an industry where data is vital to these enterprises, they are not all that keen to share their data with one another as you would expect, and they’re not all that keen quite frankly to bring in someone who doesn’t contribute to this, and have their data working alongside nothing.”

Cloud is very real

“the world of cloud, cloud it’s very real, it’s here now and our clients are using it and our clients are asking over and over again, help us get to this agile environment. It really is that again from my perspective being technical, the discussions I have with our clients are really about, I want that agility, I want that agility.”

Infrastructure is important but more and more the battle is around the platform layer

“So at the beginning an infrastructure layer, and that infrastructure layer is important, it’s important to us, I think it’s important to AWS as well, but more and more as we layer services on to of this the competition the battle is really around that platform layer and it’s around the kinds of services you can put on top of your infrastructure. So we have now an infrastructure that is capable of, think of it as bare metal. So any of our clients can take their entire software stack and put it right on to our cloud.”

Bluemix allows our customers to move existing systems into the cloud

“we have Bluemix as our platform. Bluemix with now all relevant IBM software available in that model, what Bluemix now does is it allows our clients to take their billions and billions of investment and their existing systems, their middleware systems, their systems of record and take all of that and move it in to a cloud environment, and now you start to see with both the infrastructure as well as the platform together you start to see ability of our clients to take advantage of that agility that I talked about.”

We’re not having any problems attracting people

“And so as leaders in so many areas of technology, as leaders in so many areas of the way the world works, we’re not having any problems attracting people. We know it’s a battle out there for great talent, that’s no different that it’s ever been. But we’re not having any problems attracting the best people. So when someone graduates and wants to go work on IT security, there are a few places you can go, but a lot of the leading work is still at IBM.”