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IBM's New CEO: What CIOs Need to Know About Virginia Rometty

By Don Reisinger on 2012-01-05


IBM CEO Virginia M. Rometty took the helm Jan. 1, 2012, as the 100-year-old company’s first female CEO, replacing longtime CEO Samuel Palmisano, who remains as the company’s chairman. When her appointment was announced in October 2011, Rometty told the New York Times that she does not anticipate changing course abruptly. Yet, Romettty’s first move, on Jan. 3, was to make key management changes in sales, growth markets and services. The next day, the company announced its plans to acquire Green Hat, a software testing company. Is this the pace of change we can expect under her leadership? The New York Times calls IBM "a company so predictable that its financial forecast is packaged as a ‘five-year road map.’". Bloomberg reports that Rometty is trying to reach a goal of $20 billion in new revenue for IBM by 2015. Rometty, who has been with the company since 1981, led the IBM services division for more than a decade before shifting in 2009 to the position of SVP and Group Executive for Sales, Marketing & Strategy. She’s been one of the driving forces behind the expansion of the company’s analytics unit, among other achievements. For years now, IBM has been a trusted enterprise partner that many CIOs have relied upon to get the right products and solutions into their offices. The ascension of a new CEO – even one with Big Blue roots as deep as Rometty’s – is likely to raise questions for enterprise CIOs about the direction the company will take next. With that in mind, here are nine things IT leaders need to know about Rometty.

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What Will Change?


Despite the immediate executive shuffle and corporate acquisition after she took office, Rometty has stated in media interviews that she does not anticipate changing IBM’s course abruptly. If true, that’s good news for CIOs.

What Makes IBM Tick?


Rometty fully understands what IBM is all about. She’s been with the company 30 years, and has been involved in executive-level decision-making for decades. She knows what makes IBM tick -- and she respects that.

Mission: Success


Palmisano leaves his mark as the CEO who turned around an ailing IBM. Rometty is working to meet the company’s goal of $20 million in new revenue by 2015. She has proven herself as a top executive at IBM, and a driving force behind the company’s recent strides in data analytics and the cloud.

What Consumers?


If you’re worried about IBM pulling a Cisco and starting to focus its efforts on consumers, don’t be. IBM will always be an enterprise-focused firm, and it has no desire to change that. Is Rometty likely to try out new products? Of course. But don’t expect them to be detrimental to your business.

Cloud, Cloud, Cloud


The cloud has figured big in IBM’s recent moves, and Rometty will continue to lead that charge as IBM looks to move into cloud computing services. Expect the cloud to be front-and-center of IBM’s strategies under Rometty, a move that observers say is likely to reshape the company’s traditional outsourcing services model.

Enterprise Customers


Rometty’s experience in the sales and services side of the house is good news for enterprise CIOs. She understands the enterprise, and her perspective should only help IBM’s relationships with customers going forward.

Big Blue First


Unlike many other corporations in the tech sector (Apple, Salesforce, Google) IBM’s century-old history of innovation that it bigger than any single individual leader. Rometty appears to have the personality to succeed in such an environment.

Palmisano’s Choice


Rometty was handpicked by Palmisano from among a number of contenders jockeying to take over IBM. Chances are, we can expect her to follow his strategy and keep his legacy going long after he leaves the company. She has Palmisano’s endorsement and IBM’s board clearly knows what it’s doing: Unlike many large enterprises, Rometty is only the ninth CEO in Big Blue’s 100-year history.

Future Vision


For years now, Rometty has been peering into the future and making smart decisions about the products, services and strategy that would be most valuable for enterprise customers. That experience will serve her well in her new role, and should put your mind at ease about where IBM is headed under her leadership.

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