RULE 424(b)(3)
                                                      REGISTRATION NO. 333-40669

                              PRICING SUPPLEMENT NO. 23
                        TO PROSPECTUS DATED December 10, 1997
                         (As supplemented December 12, 1997)

                     INTERNATIONAL BUSINESS MACHINES CORPORATION

                                 MEDIUM-TERM NOTES
                                (Floating Rate Note)
                     (Due One Year or More from date of issue)

Designation: 
Floating Rate                                     Original Issue Date:
Medium-Term Notes                                 October 22, 1998
due October 22, 1999

Principal Amount:  $100,000,000                   Maturity Date:
                                                  October 22, 1999

Issue Price (as a percentage of                   Regular Record Dates:
Principal Amount):  100%                          Fifteenth calendar day
                                                  whether or not a
Interest Rate Base: LIBOR (3 MONTH)               Business Day prior to
                                                  the corresponding
Spread: MINUS 3.5 basis points                    Interest Payment Date
(-0.035%)

Initial Interest Rate:  5.15344%

Interest Payment Dates: January 22, 1999, April 22, 1999, July 22, 1999 and the
Maturity Date.

Commission or Discount (as a percentage of Principal
Amount):  0.00%
                                                  Interest Reset Dates:
                                                  Each Interest Payment
CUSIP:  459 20Q BQ6                               Date (other than the
                                                  Maturity Date)
Index Maturity:  3 month


Designated LIBOR Page:                            Interest Reset Period:
Telerate Page 3750                                Quarterly


Interest Determination Dates: Second London Banking Day preceding  each Interest
Reset Date

Form of Note:[X] Book-Entry




             [ ] Certificated

     This is a Pricing Supplement.  It adds to, or 'supplements' the description
of the Notes referred to in the accompanying Prospectus Supplement and
Prospectus.  It provides specific pricing and other information that prudent
investors want to know about the Notes.  The Pricing Supplement also amends the
Prospectus Supplement and Prospectus to the extent its terms differ from those
already described in the Prospectus Supplement and Prospectus.

INTEREST

     The Notes will bear interest at a rate which is reset on the Interest Reset
Dates which have been listed above. The interest rate in effect from the
Original Issue Date to the first Interest Reset Date for the Notes will be the
Initial Interest Rate.  Thereafter, the interest rate per annum on the Notes for
each Interest Reset Period will be determined at the rate for Three (3) month
LIBOR MINUS a Spread of three and one-half basis points (0.035 %).

     Interest on the Notes will be calculated based on the actual number of days
elapsed over a year of 360 days. The Calculation Agent for the Notes will be The
Chase Manhattan Bank.

     If any Interest Payment Date or any Interest Reset Date would otherwise be
a day that is not a Business Day, such date will be postponed to the next day
that is a Business Day.  However, if that day falls in the next calendar month,
the Interest Payment Date or Interest Reset Date will be advanced to the first
day before that date which is a Business Day. 

     A "Business Day" means any day on which commercial banks and foreign
exchange markets settle payments in The City of New York, and is a day on which
dealings in deposits in U.S. Dollars are transacted in the London interbank
market (a 'London Banking Day').

     We have capitalized other terms in this document.  If they are not defined
specifically here, those terms have the same meanings we have already given to
them in the Prospectus Supplement and Prospectus.

PLAN OF DISTRIBUTION

     We are selling the Notes to Chase Securities Inc. In turn, Chase Securities
Inc. will be reselling the Notes to one or more investors at varying prices. 
Those prices may depend on market conditions at the time of resale.


Dated: October 19, 1998