Today's announcement is the latest action we have taken in recent years to reposition IBM for leadership in a rapidly changing industry. For some time we have said that there are two ways to create long-term value for clients and shareholders in the IT industry： Invest heavily in R&D and be the high-value innovation provider for enterprises， or differentiate by leveraging vast economies of scale， high volumes and price.

　　IBM is an innovation company. We are committed to being the premier IT solutions partner for enterprises of all sizes， in all industries. This business model requires that we continuously create intellectual capital and that we reinvent everything we do —— our technologies， products and services， our culture and our portfolio of businesses. This has been the hallmark of our company and has enabled IBM to grow and to lead countless product and technology cycles over many decades.    ()