Days of "Get Rich Quick" Internet Schemes are Past, IBM Chairman Tells Partners; IBM and Business Partners Redefine "e-Business" at Annual Conference Starting Today In Atlanta.

Business & High Tech Editors

PARTNERWORLD2001, ATLANTA--(BUSINESS WIRE)--February 26, 2001

IBM Chairman and CEO Lou Gerstner today told an audience of some 4,000 IBM Business Partners that the get- rich-quick business schemes are over and it's time to get serious about using the Internet as a real business tool. Speaking at IBM's PartnerWorld 2001 conference, Gerstner said the opportunities will come for firms that can integrate technologies, maintain reliable computing infrastructures and deliver "e-sourcing."

"People have finally come to understand what we've been talking about for five years: that e-business isn't about content, or dot-coms, or any of a thousand get-rich-quick schemes," Gerstner said. "There's a newfound appreciation that e-business is just business. Real business. And for those willing to do the work, the returns are enormous," he said.

Gerstner called Business Partners "vital" in delivering these solutions and to IBM's overall success. In 2000, Business Partners drove approximately a third of IBM's overall revenues -- up from less than 10 percent just four years ago. These partners, ranging from traditional resellers to independent software vendors, service providers, Web integrators and systems integrators, have become IBM's primary conduit for reaching small- and medium-sized businesses, which account for the fastest growth in IT spending. They also deliver as much as 80 percent of some of IBM's servers and more than half of IBM's storage products.

"IBM and our Business Partners are uniquely positioned to provide the hardware, software and services required to support a customer's needs in the next generation of e-business," said Peter Rowley, General Manager, IBM Global Business Partners. "In the past, our focus was defining e-business. Now, we are looking past the term and into the next generation of e-business evolution. We are looking at e-business integration, infrastructure and e-sourcing - three areas that are redefining how companies today use the Internet to gain competitive market advantages."

At PartnerWorld 2001, IBM announced an alliance with BellSouth to deliver a turnkey e-business solution to small and mid-sized companies throughout the Southeast. The alliance extends BellSouth's e-Platform strategy and state-of-the-art hosting centers in Atlanta and Miami, and builds on IBM's leadership in the e-business marketplace to bring reliable and cost-effective hosting and web-enablement solutions to new markets. The alliance includes sales, marketing and development of offerings initiatives that will leverage IBM's distribution channel, giving a significant reach to BellSouth's indirect sales force through IBM's extensive network of distribution partners that sell to businesses in the region.

IBM also announced:

-- A series of new Linux initiatives within the IBM PartnerWorld program to
deliver education, certification, co-marketing, incentives and technical
support.

-- Formation of a Consultants & Integrators unit to support the needs of a
diverse range of e-business consulting and integration firms, including
business management consultants, systems integrators, Web integrators, and
emerging services firms such as mobile integrators.

-- Expansions to its Internet start-up offering, Quick Launch for e-business
Ventures, making it accessible to qualifying Web integrators, hosters and
incubators in addition to qualified resellers who are IBM Business Partners,
from IBM's Net Generation business unit.

-- A new Business Partner initiative from Tivoli Systems Inc. to attract Web
services Business Partners for its fast-growing set of e-business
infrastructure solutions.

-- New lease programs to help the small- and mid-sized customers of IBM
Business Partners invest in the technology needed to grow their business, from
IBM Global Financing.

-- Agreements with five software services companies -- Enterpulse, Eviciti,
MCBA, Rare Medium and Web Emporium -- to meet growing customer demand for
tailored applications built with WebSphere Commerce Suite software; and an
extension of IBM's strategic alliance initiative to create new business
opportunities for independent software vendors (ISVs) in a variety of
industries and markets worldwide.

iNotes Access for Microsoft Outlook and the Total Storage series also were announced. The iNotes eServer software solution allows customers to consolidate multiple Exchange servers onto a single iSeries Domino server, delivering significant cost reduction and vastly improved function, reliability and security. Expanding on its recent Storage Networking initiative, IBM also announced the availability of the Total Storage series. These pre-tested, plug and play storage networking packages help businesses of all sizes more easily consolidate, secure, preserve and share critical business data.

IBM's PartnerWorld Program, a marketing and enablement program developed to enhance IBM Business Partners' e-business revenue opportunities, has consolidated more than 50 unique Business Partner programs across IBM to create a single, consistent framework for doing business with IBM. The program gives Business Partners access to support required to cultivate new revenue streams, expand reach, develop new skills and take advantage of new market opportunities.

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