International Business Machines (IBM) announced a $200 million software agreement with Consist Software Solutions Inc., a leading provider of information technology applications to large and medium-sized companies throughout Latin America. The company chose IBM to help clients transform their businesses and reduce operational costs.
Consist Software Solutions have agreed to standardize all of its products to run on IBM technology, including its DB2 database and Websphere family of middleware products. Consist will provide its clients in the financial services, telecommunications, energy and utilities, government and healthcare industries with new software applications that embed IBM’s software portfolio to support new IT infrastructure projects.
This deal is one of the largest for IBM in emerging Latin American markets such as Brazil, and shows that emerging markets remain a notable bright spot for the technology industry.
IBM continues to expand its operations in emerging markets. With the strength of its global on-demand model (responding to customer demand with flexibility and speed) IBM is experiencing strong revenue growth in all geographies, with robust growth in emerging markets worldwide.
The emerging countries of Brazil, Russia, India and China (BRIC) together grew 18.0% (15.0% when adjusted for currency) in 2008. Revenue was also driven by double-digit growth in potential markets, such as India and China, which were up 10.0% in 2008. IBM expects these markets to drive revenue and increase growth beyond 2009.
We maintain our Neutral rating on IBM.
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