Commercial Data Servers Launches CDS 2000; Establishing Corporate Computing Platform for Year 2000 and Beyond; CDS 2000 Provides Low Cost Pathway For Mainframe Users Facing Year 2000 Problems.

SUNNYVALE, Calif.--(BUSINESS WIRE)--July 28, 1997--Commercial Data Servers, Inc. today began general availability shipments of the CDS 2000 Enterprise Server, an IBM S/370, S/390 compatible enterprise server focused on mainframe users that face Year 2000-related shutdown.

"There are up to 10,000 S/370 compatible processors out there that won't work after midnight of December 31, 1999," said Kevin Murphy, CDS president. "The CDS 2000 is an integrated solution that can assist in transforming non-year 2000 compliant computing environments into robust engines for the next millennium."

"This new mainframe offers corporate information managers the best opportunity to bring new life to their data, whether it be across the enterprise or within their department for specific applications. The CDS 2000 server offers one of the most cost-effective solutions for year 2000 compliance and IBM S/370, S/390 compatibility," Murphey added.

The CDS 2000 is a fully integrated system environment that includes processors, storage, uninterruptible power, system software and support services. It uses advanced CMOS processors and high-throughput fiber optic I/O technology to combine the performance and stability of a true S/390 architecture running at 5 MIPS with a cost-effective, office friendly footprint unlike any mainframe to date.

Pricing for the CDS 2000 begins at $185,000, completely installed and enabled with its Ready-To-Work software package, including OS/390 Release 3, VSE/ESA Version 2 Release 2, or VM/ESA Version 2 Release 2. The systems are shipped Year 2000 enabled. The company said that the CDS 2000 can be leased to own for under $6,000 a month, making total cost of ownership one of the major benefits of the new enterprise server.

"The CDS 2000 is a good entry-level mainframe. It's an expansion of mainframe capability and, as a year 2000 test bed, it addresses functionality needed in the industry," said Jerry Sheridan, Director and Principal Analyst for Hardware at Dataquest, a leading industry research firm.

Seven units have been shipped so far during the initial beta site testing and evaluation of the system. Customers are using the system to evaluate, test and convert data for Year 2000 upgrades. Because of the system's low price, users can purchase systems at a departmental level and set forward the operating clock to test data conversion in a fully protected environment separate from regular data processing functions.

The self-cooled unit offers features usually associated with desktop server technology including a standard 120-volt, 15-amp power source and the customers' choice of S/390 operating system software that is preconfigured, year 2000-enabled and "ready to work" when the unit is powered-up. The CDS 2000 also features a 30-minute uninterruptible power supply and internal RAID storage system with hot-swappable disk drive capability.

"Commercial Data Servers provides a practical, affordable solution for the mainframe customers whose systems will come to a halt when the clock strikes 12 in the year 2000," said Michael Kahn, President of the Clipper Group, a Wellesley, Massachusetts based consulting company specializing in computing solutions for the enterprise environment. "IBM is fortunate that CDS can deliver an attractive solution to a customer base where it does not offer a competitive alternative and has difficulty providing the on-going care and service that this segment requires."

Murphy said that CDS will sell its new family of CDS 2000 through VARs, system integrators and a network of mainframe savvy agents familiar with S/370 and S/390 architecture and market. The Amdahl Corporation will provide seven day a week, 24-hour-a-day service. Amdahl is a recognized leader in the delivery of outstanding service and support for mainframe operations.

"The low hardware costs associated with off-the shelf components coupled with the price advantages of IBM's ESL (Entry System Level) software program have allowed CDS to set new standards for price and performance," Murphy said.

ITC, one of the largest VARs specializing in IBM P/390 replacement hardware, software and services, said that it has signed an agreement to sell and develop customer solutions based on the CDS 2000 system that began shipping this month. In addition to the marketing agreement, Stan King, chief technical officer at ITC in Falls Church, VA said his company purchased a CDS 2000 system for its own internal use and for development and testing of year 2000-compatible software for its customers. "We were attracted to the CDS 2000 specifically because of its small size and the fact that it operates in the standard office environment. It's compact and it's office friendly but it's also a real mainframe," he added.

ITC also has plans to market a higher performance range of IBM S/390 compatible mainframes to be introduced by CDS next year and which use advanced computer design technology including cryo-cooling. "We're betting on CDS based on its ability to continue to increase the performance and value it offers our customers," King said.

Commercial Data Servers, Inc. said that it has signed an agreement with value added reseller (VAR) AASKI Technology Ltd. to market the CDS line of enterprise servers. Based in Toronto, Canada AASKI said it plans to offer its customers specialized support and development services for running enterprise applications such as Lotus Notes and converting operating and applications code to meet Year 2000 requirements. Office friendly features of the CDS systems are among the biggest selling points, according to Don Robertson, president of AASKI. "The environmental factors are key to our use of the CDS system," he said. "There's no need for air conditioning and there are no raised floors."

"We were looking for VARs that were comfortable and familiar with mainframes," said Ron Hankison, Vice President of Development at CDS. "The other challenge was to get VARs that would be comfortable with CDS. Because the mainframe market is dominated by IBM, most VARs have not become accustomed to working with newer players like CDS," he said.

Hankison said the other major requirement is for VARs to have strong value-added services that would showcase the capabilities of the CDS system. "One of the best value-added propositions is the combination of the year 2000-compliant features of the CDS machine with year 2000 software conversion and testing services."

Commercial Data Servers, based in Sunnyvale, California, develops and markets enterprise servers for the IBM S/370, S/390 commercial computing environment. Its flagship product, the CDS 2000, provides solutions for companies seeking to evaluate, convert, and test applications and data for Year 2000 compliance as well as providing complete enterprise solutions for departmental, application specific and emerging enterprise companies. Corporate and product information is available by contacting the company at www.cdatas.com or by calling (408)-541-8440. -0-

Note to Editors: CDS, Commercial Data Servers, CDS 2000 Enterprise Server, & CDS 2000 are trademarks of CDS. IBM, S/370, System/390, S/390, ESCON, OS/390, VM/ESA, VSE/ESA are trademarks of IBM.

CONTACT: ChipShots, Inc.

David Gould (for Commercial Data Servers)

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