This is my last annual letter to you. By the time you read this, Sam Palmisano will be our new chief
executive officer, the eighth in IBM’s history. He will be responsible for shaping our strategic direction as well
as leading our operations. . . . I want to use this occasion to offer my perspective on what lies ahead for our
industry. To many observers today, its future is unclear, following perhaps the worst year in its history. A lot
of people chalk that up to the recession and the “dot-com bubble.” They seem to believe that when the economies
of the world recover, life in the information technology industry will get back to normal. In my view, nothing
could be further from the truth.