International Business Machines's

IBM operates as a globally integrated enterprise within a highly competitive landscape. The company's competitors span various industry segments, ranging from large multinational corporations to smaller, more specialized entities. Across its business divisions, IBM identifies hundreds of competitors worldwide, and as it executes its hybrid cloud and AI strategy, it regularly encounters new competitors.

The principal methods of competition for IBM include technology innovation, performance, pricing, quality, brand recognition, breadth of capabilities, products, and services, talent acquisition, client relationships and trust, ability to deliver business value, and service and support. To maintain leadership, IBM optimizes its portfolio through both organic and inorganic innovations and effective resource allocation. These investments not only drive current performance but also extend IBM's innovation leadership into the future.

IBM's breadth and depth of expertise enable it to integrate various technologies to address the most pressing business challenges of its clients. The company differentiates itself from other providers by leveraging its incumbency with enterprises, deep expertise in technology, industries, and business processes, a broad go-to-market reach including an ecosystem of partners and alliances, and a strong focus on innovation. These attributes position IBM for accelerated growth and prepare it for future business opportunities, such as quantum computing.

Overall, IBM holds a leadership position or ranks among the leaders in each of its business segments. A summary of the competitive environment for each business segment is provided below:

In the software segment, IBM's depth, breadth, and innovation of software offerings, coupled with its global reach, industry expertise, and research capabilities, differentiate its offerings from competitors. Principal competitors include Alphabet (Google), Amazon, BMC, Broadcom, Cisco Systems, Informatica, Microsoft, Oracle, Palo Alto Networks, Salesforce, SAP, Splunk, and VMware.

In the consulting segment, IBM competes in a dynamic market against companies such as Accenture, Capgemini, India-based service providers, management consulting firms, public accounting firms' consulting practices, engineering service providers, and companies focusing on local markets or niche service areas.

In the infrastructure segment, IBM is well positioned in the growing hybrid cloud infrastructure market, offering on-premises and cloud-based server and storage solutions. Principal competitors include Dell Technologies, Hewlett-Packard Enterprise (HPE), Intel, NetApp, Pure Storage, and original device manufacturers (ODMs).

In the financing segment, IBM provides client and commercial financing, competing primarily with non-captive financing entities and financial institutions. Key competitive factors include interest rates, IT product experience, client service, contract flexibility, ease of doing business, global capabilities, and residual values.