No. 16: IBM builds on its success

New leader focuses government unit on transformative projects

IBM Corp.

Top 100 Revenue: $1.6 billion

2007 Revenue: $98.7 billion

2007 Net Earnings: $10.4 billion

2006 Revenue: $91.4 billion

2006 Net Earnings: $9.5 billion

Employees: 356,000

IBM Corp. started 2008 with a new leader at
the helm of its public-sector practice. Todd
Ramsey, who has worked at IBM for 36 years
? most recently as the company's general manager
of global government industry ? took over
from Anne Altman as managing director of its
U.S. federal business in early January.

Ramsey said his course for continued growth
in government markets is to build on success,
going after organizational transformation and
green opportunities.

Doing more with less is a key goal of the government
because flat budgets are expected at
federal agencies during the next several years,
he said.

The company excelled in 2007, doing
$1.8 billion in prime contracting business to
come in at No. 16 on Washington Technology's
Top 100 list of federal contractors.

"Anytime the government's
spending is constrained,
it's a concern,"
Ramsey said. "But in this
particular case, it will help
our customers become more
creative and thoughtful
about how to save operating
costs in the future."

IBM's focus is on making
sure that its offerings can
achieve the savings the government is seeking
and that it has the contract vehicles to deliver
them, he said.

IBM's commitment to helping government
make the most of technology kicked into high
gear last year. For example, the company
recently acquired a number of firms with tools
and technologies designed to optimize
infrastructure, including Cognos ULC, a
provider of business intelligence tools in
public-sector agencies.

IBM also established the Service
Oriented Architecture Institute to help
federal agencies identify new ways to
build and use information technology systems
to gain greater efficiencies and
enhanced flexibility and reduce costs for
management, application development
and operations.

Ramsey said he plans to use his global
experience to introduce federal agencies
to solutions that have already been
proven to work for other governments,
including pricing systems that are reducing
traffic jams and road maintenance
expenditures in Stockholm and London
and case management systems to help
fight fraud and abuse in health care and
social services.

Packaging solutions
for reuse "enables our customers
to be much more
efficient in how quickly?
and successfully they can
implement," Ramsey said.

IBM also enjoyed several
other successes during the
past year. A crucial win
from the Air Force in April
will bolster IBM's presence in the growing
health IT arena, Ramsey said. The $51 million,
four-year knowledge management and training
sustainment contract is part of a Defense
Department initiative to provide service members
and their families with lifelong electronic
medical records.

One black mark for the company, though,
was IBM's weeklong suspension in March from
new government work because of alleged
improprieties involving an Environmental
Protection Agency contract. The suspension
was lifted, but the investigation is continuing.

In other wins, IBM captured in February the
highly sought-after $9.4 million High
Assurance Platform program from the National
Security Agency, which lets the company partner
with NSA on the next generation of high-assurance
workstations, servers and pervasive-computing
technology. The project is also
important, Ramsey said, because it will tackle
the issue of integrating networks handling different
levels of security.

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