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Member Profile: IBM
Smart Card Talk spoke with Mike Weekes, Associate Partner, IBM Global Services' Global Smart Card Solutions and Smart Card Alliance Board Member. In his ten-year involvement with smart card and related technology, Mike Weekes' work has included payment systems, authentication systems, digital ID, smart card management and other multi-application chip projects. Mike leads IBM's participation with Visa International's "Visa Smart Vendor" program as well as the MasterCard International, "MVP," vendor initiatives. He is IBM's principal member and on the Board of Directors of the Smart Card Alliance. He and his team are also full members of GlobalPlatform and regular contributors to GlobalPlatform initiatives and specifications.
What are IBM Global Services' main business profile and offerings?
The world's largest information technology services and consulting provider, IBM Global Services generated record revenue and signings in 2003 of $42.6 billion and $55.5 billion, respectively. Some 180,000 professionals in more than 160 countries help clients integrate information technology with business value - from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. IBM Global Services' offerings include:
- Application Management Services - Enables the enhancement, maintenance, support, migration and hosting of existing computer applications, and the rapid development of new ones.
- Business Consulting Services - Integrates the breath of IBM technical solutions and superior industry expertise to implement total on demand business solutions to clients.
- e-business Hosting Services - Runs data and applications over the Internet from IBM data centers around the world; also develops variably-priced services that allow clients to pay only for what they use.
- Integrated Technology Services - Provides services to enable, integrate, optimize and manage on demand business infrastructures, that increase the business value of IT for clients.
- Networking Services - Delivers intelligent network infrastructure that allows businesses to manage their IT investments and support their business objectives.
- Strategic Outsourcing - Enables clients to off-load the operation of IT systems and processes in order to focus on core business functions.
What role does smart card technology play in supporting IBM's products and services?
As the demand for smart card solutions escalates across industries, IBM Global Services increasingly is playing the roles of smart card consultants and system integrators. We also are heavily involved in smart card application development and security architectures. We have the unique advantage of industry expertise in our consulting arm, and the enormous depth of our research team, who are improving the security of card operating systems, developing tools to simplify the development of card applications, and working directly with standards organizations. IBM developers in Research and other areas of the business have numerous patents awarded over the past 24 years, many directly related to smart card technology. In addition, IBM's software group owns and licenses chip operating systems to smart card industry suppliers. Today, our JCOP (Java Card) and MFC OS (Multi Function Card OS) versions are branded under the IBM WebSphere name and licensed by several silicon manufacturers.
What do you see are the key drivers for smart card technology in the market?
Security, security, security - for access control, authentication, identification and payments. Contactless smart cards are also coming into their own and will grow because they can directly address the cardholder's concern for privacy and be implemented with minimal infrastructure upgrades. Because of the contactless smart card's additional attributes, the value proposition is extended to all stakeholders ... issuer, acceptor, and cardholder. Consumers are getting so sophisticated about security and privacy - as they should - and we have the answers in smart card technology.
What trends do you see developing in the market that IBM hopes to capitalize on?
We see smart cards, in all form factors, starting to solve real problems. Look at the problem of identity theft for example. It is not just my concern as a consumer. Bankers, retailers, civil servants, doctors, insurers, and first responders, all have a financial and/or liability stake in the problem that needs to be resolved. Access control to top-secret facilities, dangerous chemicals, and explosives is crucial - we're living in a world where heightened security is critical.
What obstacles to growth do you see that must be overcome to capitalize on these opportunities?
The establishment of ubiquitous standards which resolve interoperability issues and allow the widespread deployment of an acceptance infrastructure. For example, in some organizations that use smart cards today, we still see someone walking down the hall wearing a "necklace of cards." Reducing that necklace of cards down to a manageable few requires new standards at the application interface level (for example, in presenting userids and passwords), business agreements and risk models on sharing computing resources, and security assurances about the cards themselves.
What do you see are the key opportunities and issues for systems integration in the smart card systems being deployed now?
We believe the business issues or problems are geographically driven by each industry sector. For example, the problem of bank card fraud is addressed by the EMV technology migration in countries where the bank card associations have recognized and mandated the need for change. The issues of fraud, national security and identity theft are three big drivers that span geographic boundaries and industry sectors. The smart card technologies which can help address those problems are mature in 2004 and become the core business of successful systems integrators.
How do you see your involvement in the Alliance helping IBM become successful?
The Smart Card Alliance provides a forum for all of us involved in the sector to actually collaborate on the resolution of larger industry problems. It both sharpens our focus on specific technologies and gives us a unique chance to view the bigger picture where smart card technologies are converging. I like the example of convergence in the payment and transit sectors, with industry-standard contactless payments being processed and cleared within the existing payment processing networks.
What's ahead for IBM?
Continued melding of industry expertise and Research and close collaboration with customers, partners, and the Alliance. We have tremendous smart card talent and experience at IBM, but it's collaboration that will move this important technology forward.

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