we are facing a number of significant short-term issues, including an uncertain global economic environment, ongoing weakness in some parts of Asia and Latin America, and continued price pressures in semi conductors.

This weakness in an environment of price shocks, fuel volatility and regulatory uncertainty is the recipe for continued boom and bust cycles in the power industry.

In each instance, Sam has done far more than manage operations effectively, ... He has made it both his personal mission and that of IBM to become the number one competitor in each of these markets. Sam's unique mix of strategic vision, passion and discipline, combined with his intimate understanding of IBM, make him the right person to become IBM's next CEO.

Computers are magnificent tools for the realization of our dreams, but no machine can replace the human spark of spirit, compassion, love, and understanding.

Services is clearly the largest and fastest-growing portion of the information technology industry, and we continue to extend our leadership position each quarter, ... Our software business continues to gain momentum.

[IBM itself is very positive about the recent quarter.] We achieved good earnings results despite a number of challenges, ... We have been able to deliver consistent financial results because of the breadth and diversity of our overall business portfolio, which is unmatched in our industry.