Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
MACDONALD J RANDALL
   2. Issuer Name and Ticker or Trading Symbol
INTERNATIONAL BUSINESS MACHINES CORP [IBM] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Senior Vice President
(Last)
(First)
(Middle)
IBM CORPORATION, NEW ORCHARD ROAD		 3. Date of Earliest Transaction (Month/Day/Year)
05/08/2008
(Street)

ARMONK, NY 10504		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 05/08/2008   M   2,631 A $ 0 65,856.4717 D  
Common Stock 05/08/2008   M   3,125 A $ 0 68,981.4717 D  
Common Stock 05/08/2008   M   893 A $ 111.87 69,874.4717 D  
Common Stock 05/08/2008   M   74,107 A $ 111.87 143,981.4717 D  
Common Stock 05/08/2008   F   1,153 D $ 124.46 142,828.4717 D  
Common Stock 05/08/2008   F   1,369 D $ 124.46 141,459.4717 D  
Common Stock 05/08/2008   S   100 D $ 124.6475 141,359.4717 D  
Common Stock 05/08/2008   S   600 D $ 124.65 140,759.4717 D  
Common Stock 05/08/2008   S   1,700 D $ 124.66 139,059.4717 D  
Common Stock 05/08/2008   S   100 D $ 124.665 138,959.4717 D  
Common Stock 05/08/2008   S   100 D $ 124.6675 138,859.4717 D  
Common Stock 05/08/2008   S   1,500 D $ 124.67 137,359.4717 D  
Common Stock 05/08/2008   S   400 D $ 124.675 136,959.4717 D  
Common Stock 05/08/2008   S   100 D $ 124.6775 136,859.4717 D  
Common Stock 05/08/2008   S   2,000 D $ 124.68 134,859.4717 D  
Common Stock 05/08/2008   S   100 D $ 124.6875 134,759.4717 D  
Common Stock 05/08/2008   S   4,100 D $ 124.69 130,659.4717 D  
Common Stock 05/08/2008   S   2,200 D $ 124.695 128,459.4717 D  
Common Stock 05/08/2008   S   1,900 D $ 124.6975 126,559.4717 D  
Common Stock 05/08/2008   S   300 D $ 124.698 126,259.4717 D  
Common Stock 05/08/2008   S   12,325 D $ 124.7 113,934.4717 D  
Common Stock 05/08/2008   S   1,800 D $ 124.705 112,134.4717 D  
Common Stock 05/08/2008   S   200 D $ 124.707 111,934.4717 D  
Common Stock 05/08/2008   S   700 D $ 124.7075 111,234.4717 D  
Common Stock 05/08/2008   S   7,988 D $ 124.71 103,246.4717 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Emp. Stock Option (right to buy) $ 111.87 05/08/2008   M     74,107 07/31/2004(1) 07/30/2010 Common Stock 74,107 $ 0 0 D  
Emp. Stock Option (right to buy) $ 111.87 05/08/2008   M     893 07/31/2004(1) 07/30/2010 Common Stock 893 $ 0 0 D  
Rst. Stock Unit $ 0 (2) 05/08/2008   A(2)   7,010     (2)   (2) Common Stock 7,010 $ 0 7,010 D  
Rst. Stock Unit $ 0 (3) 05/08/2008   M(4)     3,125   (3)   (3) Common Stock 3,125 $ 0 3,125 D  
Rst. Stock Unit $ 0 (3) 05/08/2008   M(4)     2,631   (3)   (3) Common Stock 2,631 $ 0 5,264 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
MACDONALD J RANDALL
IBM CORPORATION
NEW ORCHARD ROAD
ARMONK, NY 10504		       Senior Vice President  

Signatures

 D. Cummins for J. R. MacDonald by power-of-attorney   05/09/2008
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) This grant vested in four equal annual installments; the last installment vested on the date shown above.
(2) Upon lapse of the restrictions, these units are payable in cash or the company's common stock. The restrictions lapse for 2,336 of these units on 05/08/2009, for 2,337 of these units on 05/08/2010, and for the remaining 2,337 of these units on 05/08/2011.
(3) These units were payable in cash or the company's common stock upon the lapse of the restrictions on the transaction date shown.
(4) Release of restricted stock units.
 
Remarks:
Additional sales will be shown on two subsequent Form 4 filings.

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