Capital Expenditures and Investment in IBM


CapitalExpenditures and Investment in IBM

CapitalExpenditures and Investment in IBM

TheIBM (International Business Machines Corporation) has been one of themost successful companies in the United States and across the globe.Founded in 1911, it primarily undertakes the manufacturing andmarketing of computer software and hardware, while also offeringconsulting services, hosting and infrastructure in aspects such asmainframe computers and nanotechnology among others.

Oneof the key research projects that IBM is currently undertaking is onSkin Cancer Analysis, where it is investigating the cognitivecomputing pertaining to skin cancer image analysis. It involves thebuilding of a chip whose technological design is inspired by humanbrain. It is a component of the cognitive software and hardwareecosystem that introduces new grounds for distributed supercomputingand sensor applications, integrating brain-like abilities to devisesso as to solve problems such as multi-sensory fusion, audition andvision.

Oneof the programs in which IBM has collaborated with researchers is inaugmented reality for retail app. The application offers shoppers apersonalized shopping experience including real-time productcomparisons, as well as special offers as they go across the store.Images of the product would be captured, accurately identified andinformation about it displayed alongside ranks of the products inline with criteria such as nutritional value and prices and otherincentives available.

Inacademic collaboration, there is the IBM Academic Initiative, aglobal program providing no-charge access to resources so as toassist faculties in enhancing their educational programs so that thestudents would have the capacity to compete in any industry’s jobmarket.

Asa technology company, research is a fundamental element of IBM’sexpenditure. According to the financial statements for the year ended2013, the company spent $6.2 billion in research, development andengineering. This was a 1.2% decrease from the previous year, achange that can be attributed to lower bases spending and partialoffsetting by acquisitions.

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