IBM Corporation Future Shape of Industry / University / Government Research Partnerships Innovation and the Journey of e-Business on Demand

I/UCRC | January 8, 2004 © 2002 IBM Corporation Corporate University Relations Page 2 University partnership goals: build relationships of mutual value, with top priority placed on technical talent ● ● Common worldwide goals ● ● improve access to IBM offerings for skill development ● ● collaborate on research with selected institutions ● ● accelerate recruiting the best talent ● ● increase sales

I/UCRC | January 8, 2004 © 2002 IBM Corporation Corporate University Relations Page 3 AP leads in number of science/engineering students Higher Education StudentsHigher Education Students in Science & Engineering Source: UNESCO 2000 Total Student Population: 88.2 million Students in Science & Engineering: 23.6 million

I/UCRC | January 8, 2004 © 2002 IBM Corporation Corporate University Relations Page 4 IBM’s University Relations Programs support research IBM Scholars university product portal Easy access to IBM’s offerings for academia which support skill development in software, hardware, and servicesEasy access to IBM’s offerings for academia which support skill development in software, hardware, and services IBM Ph.D. Fellowships Attract and hire exceptional Ph.D. students, nominated by facultyAttract and hire exceptional Ph.D. students, nominated by faculty IBM Faculty Awards Focus on strategic opportunities with recognized leaders, nominated by IBMersFocus on strategic opportunities with recognized leaders, nominated by IBMers Shared University Research (SUR) Awards Support collaborative research in areas of mutual interest through equipment donations and other support, nominated by IBMersSupport collaborative research in areas of mutual interest through equipment donations and other support, nominated by IBMers IBM Scholars university product portal Easy access to IBM’s offerings for academia which support skill development in software, hardware, and servicesEasy access to IBM’s offerings for academia which support skill development in software, hardware, and services IBM Ph.D. Fellowships Attract and hire exceptional Ph.D. students, nominated by facultyAttract and hire exceptional Ph.D. students, nominated by faculty IBM Faculty Awards Focus on strategic opportunities with recognized leaders, nominated by IBMersFocus on strategic opportunities with recognized leaders, nominated by IBMers Shared University Research (SUR) Awards Support collaborative research in areas of mutual interest through equipment donations and other support, nominated by IBMersSupport collaborative research in areas of mutual interest through equipment donations and other support, nominated by IBMers

I/UCRC | January 8, 2004 © 2002 IBM Corporation Corporate University Relations Page 5 Research focus areas support innovation in e-business on demand, which requires the fusion of: Business insight: services and software to improve business performance Advanced business integration (data integration, product lifecycle management, e-learning, e-supply chain)Advanced business integration (data integration, product lifecycle management, e-learning, e-supply chain) Infrastructure: hardware, software and services integrated into an open computing environment Deep computing (bio-informatics, distributed/parallel algorithms, visual analysis)Deep computing (bio-informatics, distributed/parallel algorithms, visual analysis) Computing infrastructure (grid, security, autonomic, storage, nextgen Web)Computing infrastructure (grid, security, autonomic, storage, nextgen Web) Linux enhancementsLinux enhancements Exploratory computing technologies (nano, Si, STI)Technology components: Exploratory computing technologies (nano, Si, STI) Business insight: services and software to improve business performance Advanced business integration (data integration, product lifecycle management, e-learning, e-supply chain)Advanced business integration (data integration, product lifecycle management, e-learning, e-supply chain) Infrastructure: hardware, software and services integrated into an open computing environment Deep computing (bio-informatics, distributed/parallel algorithms, visual analysis)Deep computing (bio-informatics, distributed/parallel algorithms, visual analysis) Computing infrastructure (grid, security, autonomic, storage, nextgen Web)Computing infrastructure (grid, security, autonomic, storage, nextgen Web) Linux enhancementsLinux enhancements Exploratory computing technologies (nano, Si, STI)Technology components: Exploratory computing technologies (nano, Si, STI)

I/UCRC | January 8, 2004 © 2002 IBM Corporation Corporate University Relations Page 6 Diversity is a business priority Inclusiveness Accessibility Ongoing commitment Inclusiveness Accessibility Ongoing commitment

I/UCRC | January 8, 2004 © 2002 IBM Corporation Corporate University Relations Page 7 Future directions… Innovation is needed to fuel economic growth Innovation in the 21 st century transcends traditional definitions of research and development Services-driven global economy Intersections between industries, disciplines, … Collaboration between industry, universities, and government is a critical in developing the required technical talent Innovation is needed to fuel economic growth Innovation in the 21 st century transcends traditional definitions of research and development Services-driven global economy Intersections between industries, disciplines, … Collaboration between industry, universities, and government is a critical in developing the required technical talent