IBM eServer and VMware to Consolidate Multiple "Virtual Servers" on a Single Server to Lower Costs for Businesses

Launch Joint Development to Exploit IBM Technology in High-End industry-Standard Systems

Armonk, NY, February 19, 2002 -- IBM and VMware(TM) today announced they are delivering tools designed to run more than 20 virtual servers on a single IBM eServer*, dramatically lowering costs and consolidating workloads. In addition, IBM will work with VMware to exploit IBM eServer technology on its next generation of Intel(R)-based servers.

Under the joint development agreement, products developed by IBM and VMware will provide IBM eServer xSeries** systems with dynamic logical partitioning capability - a virtual machine technology first introduced on IBM mainframes in the 1970's. IBM will offer virtualization capabilities on IBM eServer xSeries 360, its first Intel(R)-based servers featuring the IA-32 Intel Xeon(TM) ProcessoMP and incorporating IBM's Enterprise X-Architecture(TM) technology.(1)

"Helping customers reduce their total IT costs with new technology is a top priority," said Susan Whitney, General Manager, IBM eServexSeries. "As industry-standard servers continue to take on more demanding business critical workloads, IBM along with VMware can offer customers partitioning capabilities that can boost capacity, consolidate servers and help decrease hardware acquisition costs."

The IBM eServer x360 marks the debut of IBM's XA-32 core chipset that features IBM's most advanced Copper Chip breakthroughs and mainframe-inspired technologies to offer customers forty percent more processors per rack while taking up a third less floor space than competing systems. The x360 packs 4-way computing power in a 3U rack-optimized design ideal for constrained data center and supports Microsoft applications and operating systems, Linux, Novell NetWare and other operating systems.

Built with technology from IBM's Project eLiza initiative, the IBM eServer x360 offers multiple layers of self-healing tools designed to allow the server to continue operating -- even through system errors or failures. To maintain high performance, intelligent technologies help allocate system resources to high-priority applications for extra support and help prevent bottlenecks in critical system resources, such as memory and network traffic.

In 2001, IBM introduced virtualization capabilities in its high-end Unix systems. The eServer p690 can either be operated as a single large server or divided into as many as 16 "virtual" servers, running any combination of the AIX 5L and Linux operating systems. The p690 offers the UNIX market's most flexible and efficient use of processors, memory and I/O resources, enabling customers to create virtual servers with a single processor or multiple processors. The p690 will be able to dynamically reconfigure partitions -- while still operating -- to meet changing workload demands. (2)

For more information, visit http://www.pc.ibm.com/us/eserver/xseriesor contact your IBM Sales Representative or IBM Business Partner.

About IBM

IBM is the number one server vendor in the world. (3)

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*The IBM eServer brand consists of the established IBM e-business logo with the descriptive term "server" following it.
**IBM, the e-business logo, xSeries, and X-Architecture are trademarks of IBM Corporation.
Intel, Itanium, Pentium and Xeon are trademarks or registered trademarks of Intel Corporation.
Microsoft and Windows are trademarks of the Microsoft Corporation. Linux is a registered trademark of Linus Torvalds. VMWare and ESX Server are trademarks of VMWare, Inc.
All other trademarks are property of their respective owners.
(1) Limited quantities available under Intel's early ship program.
(2) Planned availability in 2H 2002.
(3) According to Gartner Dataquest's third quarter worldwide servemarket database, IBM's share of worldwide server revenue increased seven points year over year to 30.3 percent in the third quarter.

IBM Contact:

Tim Dallman
IBM Corp.
507-253-8838