IBM Transforms Mid-Market eServer with Integrated Software, On/Off Capacity by the Day; Introduces New iSeries Servers, Dramatic Price Improvements.

Business Editors/High-Tech Writers

ARMONK, N.Y.--(BUSINESS WIRE)--Jan. 20, 2003

In response to customer demand for easy-to-deploy and flexible e-business solutions, IBM today announced the broadest transformation of its IBM eServer iSeries in more than a decade, delivering pre-packaged software, On/Off Capacity Upgrade on Demand by the day and price/performance improvements of up to 80% for mid-market customers.

The relaunch is part of a two-year, $500 million initiative to re-energize one of the industry's most popular servers. Used by more than 200,000 customers around the world, IBM eServer iSeries is one of the industry's customer satisfaction leaders, according to IBM surveys. New IBM eServer iSeries models feature IBM's lineup of state-of-the-art e-business software, allowing customers to add capacity on the fly, and run up to 10 Linux partitions on a single processor for server consolidation.

"This is the most comprehensive reinvention of the product line since its inception more than a decade ago," said Al Zollar, general manager, IBM eServer iSeries. "With its integrated software, capacity by the day, and dramatic price improvements, the IBM eServer iSeries now offers customers all the tools they need to respond to the world of on-demand business."

New Servers & Technology

IBM announces the creation of four powerful new servers tailored to the specific needs of customers of all sizes:

-- Up to 32-way, POWER4-based enterprise servers -- The new IBM eServer iSeries 825 and IBM eServer iSeries 870 join the IBM eServer iSeries 890 at the high-end of the iSeries family. These servers feature IBM's game-changing POWER4 chip. IBM's POWER family of microprocessors can be found in Nintendo game consoles, Apple computers and some of the world's most powerful supercomputers and storage systems. All three models are capable of running OS/400, Linux in a logical partition and Windows on the Integrated xSeries Server;

-- On/Off Capacity Upgrade on Demand -- Available on the i825, i870 and i890, this new technology allows customers to activate processors when they need them, and turn them off when they don't. Customers can now choose from Temporary or Permanent Capacity Upgrade on Demand options, offering the ultimate flexibility to meet the changing needs of their businesses; and

-- New servers for small to medium businesses -- The 1- and 2-way IBM eServer iSeries 800 and IBM eServer iSeries 810 are the new low-end additions to the iSeries family. The iSeries 800 is a new single processor model -- starting at $9,995 for a "value edition"

-- for customers seeking exceptional value in an integrated, e-business server. Both models are capable of running OS/400, Linux in a logical partition, and Windows on the Integrated xSeries Server.

New Workloads

Among the advanced features of the new iSeries, IBM introduces:

-- WebSphere Application Server - Express -- IBM's industry-leading

middleware to help small and medium businesses build and manage

dynamic Web sites is now supported on all iSeries models.

WebSphere - Express features autonomic, self-configuring "install

wizards," available only on iSeries;

-- Linux -- iSeries offers mid-market customers advanced Linux

virtualization capabilities and the ability to run up to 10 Linux

partitions on a single processor;

-- Windows -- With iSeries, customers can centrally manage their

Windows applications using IBM's integrated xSeries technology;

and

-- Transaction Processing -- With the enterprise edition software

option, iSeries customers running traditional On-line Transaction

Processing (OLTP) workloads now have access to the entire

processing power of the server, eliminating OLTP interactive

limits and levels and delivering outstanding price performance. In

addition, for traditional applications modernized for the Web with

the IBM WebFacing Tool of WebSphere Development Studio Client,

interactive performance charges are eliminated on the new models

and enhanced i890.

iSeries Standard/Enterprise Edition Software

IBM introduces simplified packaging and software options targeted specifically for the unique demands of e-business:

-- The standard edition, starting at $12,000, supports e-business

applications and includes the capability to run multiple operating

systems, Capacity Upgrade on Demand and dynamic logical

partitioning; and

-- The enterprise edition, starting at $78,000, supports e-business

and traditional applications and includes IBM Lotus QuickPlace and

Sametime, WebSphere - Express, Tivoli and DB2 database software,

as well as education and services for rapid deployment of

e-business solutions. The package also includes a processor

activation for Linux on the iSeries 870 and iSeries 890, and an

Integrated xSeries Server for Windows integration.

"The newest capabilities and options in the IBM eServer iSeries provide outstanding flexibility and price performance for J.D. Edwards customers," said Les Wyatt, senior vice president and chief marketing officer, J.D. Edwards. "IBM's new Temporary Capacity Upgrade on Demand feature augments the existing open architecture solutions in J.D. Edwards 5 and maximizes the value that our software and services deliver to our customers."

IBM's storage portfolio complements the iSeries. For those situations that require external storage, IBM's Enterprise Storage Server (code-named "Shark") offers 24x7 reliability, cross platform support, manageability and return on investment. In addition, flexible financing from IBM Global Financing can further reduce up-front costs and help customers match expenses to solution benefits by spreading payments across the life of an iSeries implementation.

The new IBM eServer iSeries models will be available on February 21, 2003.

About IBM eServer

IBM offers a full line of data transaction, Web application and appliance servers that embrace industry standards. Powered by breakthroughs such as microprocessors with copper wiring and Silicon-on-Insulator technology, IBM servers have captured industry leading benchmarks that measure transactions, Web serving capabilities and performance in software applications. The IBM eServer line is an integral part of customized, flexible and scalable Internet solutions for companies of all sizes. Linux is capable of running on IBM's entire eServer line.

Information on IBM eServer is available at http://www.ibm.com/eserver. IBM news releases and fact sheets are available at http://www.ibm.com. The IBM eServer brand consists of the established IBM e-business logo with the following descriptive term "server" following it. The following are either trademarks or registered of International Business Machines Corporation in the United States or other countries or both: IBM, the IBM e-business logo, iSeries, xSeries, WebSphere, OS/400, Lotus, Tivoli and DB2. Linux is a registered trademark of Linus Torvalds. All others are trademarks or registered trademarks of their respective companies.