IBM and VMware Simplify Consolidation of Intel Processor-Based Servers

Firms expand relationship; IBM to offer and support VMware ESX Server

ARMONK, N.Y., July 29, 2002 — IBM and VMware today announced an expansion of their relationship designed to make it easier for customers to reduce cost and complexity by consolidating workloads onto powerful IBM eServer[tm] Intel[r] processor-based systems.

Building on a joint development agreement announced earlier this year, the two companies today announced an agreement to address customer demand for cost-effective, quick-to-deploy server consolidation solutions.

Under the agreement, IBM will offer VMware ESX Server virtual machine software with dynamic logical partitioning with select eServer systems. IBM will offer worldwide support for VMware ESX Server software and Microsoft[r] Windows[r] and Linux[r] operating systems running within VMware ESX Server virtual machines. This support will be available as a special bid under IBM Global Services' SupportLine for Microsoft Windows and SupportLine foLinux, providing customers with single, integrated support services for eServer systems, VMware ESX Server software and operating systems.

"IBM eServer systems and VMware ESX Server are proving to be an ideal combination for server consolidation," said Clint Parrish, systems architect and lead system administrator at Saks Inc., one of the premier retail enterprises in the U.S. "We plan to run as many as 32 virtual machines on a single eServer x440 and expect to significantly lower total cost of ownership as a result."

As Intel processor-based servers take on more demanding business-critical workloads, customers are looking to increase capacity, consolidate workloads and improve server management, while reducing costs. Together, IBM and VMware offer virtualization and partitioning capabilities that can help customers improve return on investment and lower total cost of ownership by increasing resource utilization, expanding computing capacity and simplifying software lifecycle management.

"Customers are looking for complete solutions to consolidate workloads and reduce IT costs," said Deepak Advani, vice president, IBM eServer xSeries. "This expansion of the IBM and VMware relationship makes it even easier for customers worldwide to benefit from server consolidation on eServer systems, backed by comprehensive, end-to-end support from IBM."

Today's move follows the announcement in February of an IBM and VMware joint development agreement in which VMware integrated its VMware ESX Server software to operate on IBM eServer industry-standard servers. VMware ESX Server achieved IBM ServerProven validation[r] in December 2001.

"The timing couldn't be better for extending our relationship with IBM to include sales and support of VMware ESX Server," said Diane Greene, president and chief executive officer of VMware. "Our efforts are coming just as enterprise server customers are demanding more powerful and cost-effective ways to do more with less. Virtualized computing with logical partitioning is proving to be the right solution at the right time."

Introduced earlier this year, the eServer x440 is the result of a three-year development effort to build an exceptionally powerful Intel processor-based server that meets the performance, reliability and scalability requirements of corporate data center customers. Powered by ground-breaking IBM Enterprise X-Architecture[tm] technology, the x440 offers a highly reliable, "building block" approach that allows customers to pay for computing power incrementally as they need it, and is designed to support from fouto 16 processors.

About IBM

IBM offers a full line of 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. For more information, visit http://www.ibm.com/eserver.

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IBM, eServer X-Architecture, xSeries ServerProven and x440 are trademarks or registered trademarks of International Business Machines Corporation. VMware and the VMware boxes logo are trademarks of VMware, Inc. Intel is a registered trademark of Intel Corporation. Microsoft and Windows are registered trademarks of Microsoft Corporation. Linux is a registered trademark of Linus Torvalds. All other trademarks, registered trademarks and service marks are the property of their respective owners.