IBM invests E22m in software unit

THE Government yesterday approved an IDA grant aid package to support IBM’s E22 million investment in the development of a world-class knowledge centre and software development facility in Dublin.

Following a cabinet meeting Tánaiste and Enterprise, Trade and Employment Minister, Mary Harney announced that IBM is making the investment to develop its Irish R&D software facility IBM Dublin Software Laboratory (DSL) in Santry, Dublin.

IBM, who employ more than 4,000 people in Ireland, believe the E22m investment will enable it to maintain its market leadership position in the middleware software market.

The level of IDA investment in projects of this type is formally 25%, so a E5m state investment is understood to be involved.

"This investment will create a world-class knowledge centre and software development facility in Dublin to complement other IBM global labs. It will result in a major enhancement of the capabilities at IBM's Dublin Laboratory," Ms Harney said.

"The introduction of new competencies in software research, for leading-edge technologies, will move it into critical core development work for IBM's global software business," the Tánaiste said.

Ms Harney said the development was in line with the IDA's and the Government's policy for the growth of R&D in Ireland.

The Dublin Laboratory will develop components for the new IBM Lotus Workplace, a software product designed to help customers collaborate more productively using a variety of integrated, server-managed functions for email, instant messaging, document management and team collaboration.

IBM's director of Lotus workplace collaborative learning, Elaine Stephen said: "Due to excellent work by the management and staff at the Dublin lab in building a world-class software development capability we decided to make this strategic investment there.

"Our decision was influenced by the availability of the necessary skills, the growing emphasis on scientific research by Science Foundation Ireland and the strong support of IDA Ireland."

IBM entered the Irish market in 1956 with a sales operation. It now employs over 4,000 people in manufacturing, eprocurement, sales and marketing, software development, consultancy, services, and customer support treasury.

IBM employs 315,000 people worldwide. In 2003 the company had revenues of $89 billion, an almost 10% increase on 2002, and a net profit of $7.6 billion, an increase of 112% on 2002.