SOURCE: IBM CORPORATION

July 26, 2005 13:22 ET

IBM Sees Collaboration Driving New Systems Paradigms

On Demand Era Brings New Collaborative Computing Model -- Unveils Breakthrough Virtualization Capabilities, the Intent to Form Blade.org and New Mainframe With Enhanced Security Features

NEW YORK, N.Y -- (MARKET WIRE) -- July 26, 2005 --IBM today detailed new computing systems, initiatives and a planned collaborative community aimed at helping meet the rising demand by businesses to collaborate with each other more efficiently. The company said the demand is global in nature and will require that traditional transaction processing by computers be augmented by a collaborative processing approach that more tightly integrates technology, processes and personnel.

According to IBM, companies once isolated by disparate technologies are increasingly collaborating to create more on demand operations. This requires that each firm's computing systems must be linked more intelligently.

Collaborative processing means using technologies like virtualization, open standards and encryption to share information real-time inside a business and helping to enable companies in various industries to work seamlessly on business applications ranging from designing automobiles and aircraft to discovering new medicines. Collaboration between companies and institutions has begun to blur the traditional lines of information technology.

To help meet the surge in business demand for collaborative processing, IBM today announced:

--  IBM System z9 mainframe -- a sophisticated computing system, the IBM
    System z9 mainframe provides advanced security and virtualization
    capabilities that the company said is designed to enable it to support
    collaboration and to act as the hub of a new era of collaborative
    computing.
    
--  IBM Virtualization Engine 2.0 -- IBM's latest advance in
    virtualization technology with unprecedented interoperability across
    systems, storage and networking.  Open interfaces and implementation of
    standards allow premier companies such as Cisco, VMware, Network Appliance
    and others, to participate in this infrastructure.
    
--  The intention to form Blade.org -- Blade.org is planned be a
    collaborative organization focused on accelerating the expansion of
    solutions for BladeCenter, developed by IBM and Intel. The organization is
    aimed at spurring development and innovation around blade technology with
    the intent of supporting BladeCenter innovation in Voice over IP, industry
    specific solutions, security and many other technologies.
    
"As businesses and institutions integrate their operations internally and externally with customers and partners, the IT environment is changing dramatically," said Bill Zeitler, senior vice-president and group executive. "Where transaction processing has been the focus of IT for decades, we now see clients engaged in a more interactive or collaborative processing. It's no longer about what you have, it's now about what you can accomplish through collaboration."

Collaborative Processing Drives Innovation

Opening the IT infrastructure, expanding intelligent components and allowing customers to highly integrate their systems for broader sharing of data is the core of the collaborative processing trend. For example:

--  With the NYSE, IBM Engineering and Technology Services designed
    custom, handheld systems that linked to the back-end IBM mainframe systems
    to extend transaction and collaboration capabilities onto the trading
    floor. Connecting disparate IT systems enables a free flow of information
    across the enterprise. Now NYSE traders can access mainframe-based data in
    the palm of their hands from hundreds of PDA devices to ensure accurate
    decision-making at record speeds
    
--  GHY International, a leading provider of professional customs
    brokerage, teamed with IBM to develop a highly virtualized and simplified
    IT computing environment by replacing and reducing the number of servers
    from four down to one. The company uses the IBM eServer i5 model 550 with
    IBM xSeries servers to help reduce the miscellaneous use of x86 servers. .
    GHY runs 17 virtualized servers and four operating systems, i5/OS, AIX,
    Linux and Windows -- simultaneously on one physical machine.
    
--  Mercury Computer Systems expects to enhance the compute performance
    and image quality of MRI, CT and digital x-ray devices, and other demanding
    applications. Utilizing the strength of the Cell processor-based
    technology's processing power and IBM's expertise in design engineering,
    Mercury says it expects to significantly improve system performance,
    delivering precise images of stunning clarity in real time for radiologists
    and others.
    
--  BlueCross BlueShield of Tennessee, the state's largest not for profit
    health plan and a pioneering force in Tennessee's healthcare delivery
    system, has significantly increased the volume of data over the last 9
    years and expanded system capacity from 500 Gigabytes to 110 Terabytes over
    the same period. Working with IBM, BlueCross BlueShield of Tennessee
    adopted a scalable and highly secure infrastructure, including eight IBM
    TotalStorage Enterprise Storage Servers, an IBM eServer zSeries mainframe,
    nearly 200 IBM eServer xSeries, a dozen IBM eServer pSeries, IBM
    TotalStorage Enterprise Tape Drive 3592s and IBM Tivoli Storage Manager.
    BlueCross said The IBM solution helped the company to significantly save in
    the last year and a half.
    
--  The customers of Reynolds and Reynolds, an automobile dealer services
    company, are benefiting from the self-managing capabilities of IBM eServer
    xSeries, BladeCenter servers, IBM TotalStorage DS4500 storage-area network
    (SAN), IBM Tivoli Storage Manager and IBM Director systems management
    tools. Using this infrastructure, Reynolds created a new delivery model --
    Applications on Demand -- that delivers applications and services to car
    dealerships from fully managed remote servers.  Applications on Demand
    provides pre-scheduled, automatic and instantaneous systems backups for
    dealerships.  In addition, all critical dealership data is copied and
    stored off-site.  According to Reynolds, about 40 percent of the car
    dealers in the U.S. and Canada rely on Reynolds' systems to help run their
    businesses.
    
About IBM

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key IBM Business Partners, IBM offers a wide range of services, solutions, financing and technologies that help enable customers, large and small, to take full advantage of the new era of e-business on demand. For more information about IBM, visit www.ibm.com.

The following are either trademarks or registered trademarks of International Business Machines Corporation in the United States or other countries or both: IBM, the IBM e-business logo, System z9, z/OS, zSeries, pSeries, xSeries, AIX, z/OS, BladeCenter, IBM TotalStorage and WebSphere . Linux is a registered trademark of Linus Torvalds. All others are trademarks or registered trademarks of their respective companies.

All customer examples cited or described in this press release are presented as illustrations of the manner in which some customers have used IBM products and the results that they may have achieved. Actual performance characteristics will vary depending on individual customer configurations and conditions. All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice and represent goals and objectives only.

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