NASA/IBM Partnership Milestones

1944 1962 1970 1982-85 1993 1997 2006

IBM Helps design and build the Automatic Sequence Controlled Calculator for Harvard University.

IBM technology supports flights of the Space Shuttles Columbia, Challenger, Discovery, Atlantis and Endeavour.

Astronaut John Glenn four-hour, three-orbit flight is monitored in real-time by IBM computers.

computers assist flight controllers in the rescue of the Apollo 13.

IBM ThinkPad 750C first notebook in space

NASA’s Pathfinder, equipped with IBM RS/6000 lands on Mars.

IBM software develop the software and systems that will operate the James Webb Space Telescope.

3

Our world is becoming smarter

Instrumented

Interconnected

Intelligent

4

IBM Research

94%

CIOs spend an impressive 55 % of their time on activities that spur innovation

Of CIOs say it is imperative to integrate Business and Technology to innovate

78% Percentage of CIOs who want to improve the way they use and manage their data

78% of CEOs put more focus on insight and intelligence of information to realize their strategy.

69%Of CEOs will achieve better business results through more collaboration and information sharing

60%Of CEO’s agree IT complexity will continue to rise

5

The real value arrives when the software capabilities are delivered in an industry context through IBM Industry Frameworks

Supply chain

Marketing andcustomermanagement

IT systemsand operations

Merchandisingand productmanagement

Store andchannels

Business and financeadministration

Accelerate solution design Retail-specific assets

Reduce project risk Reusable implementation patterns and support for industry standards

Flexibility Choice of business applications and services from IBM and IBM Business Partners

Return on investment (ROI)Build a differentiated retail capability and business value—one project at a time

IBM Retail Industry Framework

Supply chain

Marketing andcustomermanagement

IT systemsand operations

Merchandisingand productmanagement

Store andchannels

Business and financeadministration

Information & Analytics

Business Processes

People

Product & Service Innovation

Security

Operations

IBM provides a comprehensive framework that delivers accelerates solution deployment

The framework provides a banking-specific software platform with…

• Banking extensions and pre-built solution accelerators to speed deployment

• Best practices and business- specific usage patterns to lower risk

• Support for adoption of open and industry standards

• A choice of business applications from IBM business partners

• An approach to align technology with business needs

The framework gives you speed, flexibility and choice in deploying solutions while

reducing cost and risk!

Integrated RiskManagement

Customer

Care and Insight

IntegrationOptimization

AnalyticsCollaboration

SecurityResiliency

Core Banking Transformation

Paymentsand

Securities

IBM Banking Industry Framework

6

Government Services, particularly social security and social services, are key services

and a major budget factor for all governments.

GOVERNMENT

Manage Resources Effectively

Strengthen National Security and Public Safety

Improve Citizen & Business Services

Ensure a Sustainable Environment

Improve Citizen & Business ServicesOutcomes-based Social ServicesCitizen-centered designIntegrated Case Management

7

8

Software is key to addressing these challenges, transforming the planet and making businesses smarter

Smarter energy and utilities

Smarter government

Smarter healthcare

Smarter solutions for retail

Smarter banking Smarter insurance Smarter telecommunications

Smarterchemical and

petroleum

Smarter electronics

Smarter transportation

Software

Data everywhereAs the world becomes moreinstrumented, the challenge isto get more out of the wealthof new information—from managingdata to developing insights.

Differentiation through peopleAs always, it’s the capabilities andingenuity of the people in businessthat deliver results. But today, it’sabout more than just those on yourpayroll—the greater opportunityis how well you can engage aworldwide ecosystem of employees,partners, suppliers, and customersto help create new value.

New expectations for valueCustomer expectations have never been higher: Personalizedservice, delivered flawlessly.

Global integration and connectivityAs the world becomes moreinterconnected and as theparadigm of the organization shiftsfrom multinational corporationto globally integrated enterprise,businesses can no longer afford tooperate as islands. More than ever,they need to find ways to connectboth internally and externally.

Security risksTechnology has allowed workto move beyond physical locationsand brand offices.It now exists on virtual platforms,across dispersed teams andplayers. But the more data andinformation organizations makeavailable to their internal audience,the greater the risk.

But with new models and ways of working come new challenges...

Business

9

10

IBM software delivers virtually unmatched capabilities, integrated into industry solutions that yield quantifiable business benefits while making the planet smarter.

11 Segment pretax Income

How is IBM software helping deliver better business outcomes? Massive investments, leading innovations

IBM changed the mix of the business

Hardware/financing

42%

42%

16%

40%

37%

23%

25%

40%

35%

2000 2006 2009

Software Services

IBM investment has shifted the company toward software

• More than US$8 billion in acquisitions and US$9 billion in research and development (R&D) from 2007–2009

• US$20 billion in future acquisitions

• 53 software acquisitions since 2001

• 40 innovation centers, 80 R&D labs, 33,000 developers, more than 30,000 IBM Business Partners

• Focus on software solutions and business process transformation

Backup – notes slide 3Backup – notes slide 3