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IBM Australia looks to 'high value' solutions amid strong profits Featured

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IBM is transforming its Australian business by focussing on high-value solutions following on from what the company’s CFO describes as a solid financial result in 2012 when local profits increased to $351 million.

The company's Chief Financial Officer for Australia, Sara Watts, told iTWire that IBM was continuing to deliver solid results in Australia by “continuing to transform our business, re-mixing to high-value solutions and creating new clients and markets.”

“Our technology and services are helping to transform Australia’s business and government enterprises to compete more successfully on a global stage."

Watts says IBM is responding to the changing needs of Australian clients and placing significant investment in the high growth areas of cloud computing, business analytics, mobility and social business.

In its Australian financial statement for 2012 just lodged with the Australian Securities and Investments Commission (ASIC), IBM reports that the company made a  “substantial contribution” to the Australian economy in 2012, with exports of around $532 million, as well as a broad range of business and community investments.

While 2012 was a flat year-on-year compared with 2011 in Australia for IBM, the company reported revenues of $4.527 billion for last year and an increase in profits of 13% to $351 million.

Watts also gives due recognition to the market shift, both in Australia and globally, to the cloud and in its report to ASIC, the company highlights the partnership with National Australia Bank to develop a private cloud that will host the bank’s infrastructure, software and related services “to deliver services more rapidly and with greater efficiency.”

According to IBM, in the mid-market its “continued relevance to the mid-market in 2012” was affirmed by strong demand from Managed Services Partners who acquired clients and prospects through IBM PureFlex, business analytics and IBM SmartCloud solutions.

IBM says it continued to diversify its client base in 2012, highlighting a number of new contracts last year including the Northern Territory Government’s selection of the IBM zEnterprise 114 mainframe server to host a range of governmental business applications, the Australian Bureau of Statistics commitment to the IBM Lotus platform as it continued its seven-year transformation program to 2017, and contracts with federal government departments including the Department of Defence, Australian Customs and Border Protection Service, Australian Taxation Office and Department of Human Services.

And, in its 81st year in 2012 operating in the Australian market, IBM says it worked in conjunction with researchers at the IBM Research Collaboratory for Life Sciences - Melbourne, scientists from St.Vincent’s Institute of Medical Research, the University of Melbourne and Victorian Life Sciences Computation Initiative, to create the first 3D simulation of a common cold virus using the IBM Blue Gene/Q supercomputer and paving the way for new drug development.


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Peter Dinham


Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).