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IBM Invests $200 Million in Database Tools

Helps Companies Attack the Cost of Computing With Functionally Rich Tools at Industry Leading Price Points

SOMERS, N.Y. - 12 Sep 2000: - IBM today announced it will invest $200 million to compete in the database tools market. The four-year investment is aimed at making it more cost effective and easier for companies to manage data on IBM S/390(a) enterprise servers.

IBM's functionally-rich toolset, available at half the price of competitive offerings in most cases, helps companies attack the cost of computing brought on by the rising costs of system administration.

Database tools provide customers with ease-of-use maintenance capabilities which help improve the functionality of e-business applications. According to IDC, the database tools market represents a large opportunity. Growing at 13.4% annually, the market is expected to exceed $2 billion by 2003.

IBM has already firmly established itself a leader in the database mainframe marketplace. According to IDC's Carl Olofson, IBM owns at least 75% marketshare in this sector. In fact, in the first-half of 2000, licenses for IBM's DB2 Universal Database for OS/390 grew at more than 12%, making today's announcement a natural outgrowth for IBM's data management momentum.

``IBM has long been a leader in the mainframe database marketplace and today's announcement is the next logical step to continue that momentum,'' noted Carl Olofson, director of application development and deployment, IDC. ``Delivering a feature rich toolset at industry leading price points reaffirms IBM's commitment to support the needs of its customers at the right price.''

``Today's announcement is in response to helping customers manage their businesses without being constrained by cost,'' said Janet Perna, general manager, IBM Data Management Solutions. ``The industry as a whole is facing escalating costs in systems deployment and a shortage of skills. IBM's data management tools address this concern by helping database administrators improve productivity and enhance system performance and resource utilization. ''

IBM will deliver more than 35 tools for DB2 and Information Management System (IMS) for OS/390 environments in an effort to help customers effectively manage large volumes of data inherent to any e-business. The four areas of focus include:

Database Administration: These tools enable database administrators (DBA's) to efficiently address the most common tasks associated with the service and support of database operations including installation procedures, unloading and reloading data, reorganizing information and catalog management. By optimizing these tasks, DBA's can simply manage database growth driven by e-business and control growing staff costs.

Performance Management: These tools help keep the database optimized to ensure it is operating at peak performance. These management capabilities monitor performance levels, identify problems and automate tasks to ensure that the database is running efficiently.

Recovery and Replication Management: Critical to any e-business environment, fast and easy recovery means applications and information must be readily available 24 x 7. These tools help make recovery from outages fast and error free.

Application Management: As customers enhance and upgrade their e-business applications, it is imperative that the applications have seamless access to the database. IBM's tools help customers easily adapt new applications, and arm DBA's with features that enable othem to easily develop, test and provide connections to the database.

Customers are already finding that with IBM's tools portfolio, they can expect to increase productivity and gain significant cost savings.
``By implementing IBM's data management tools we've been able to achieve our goal of reducing the costs associated with maintaining our critical patient care applications,'' said Phil Chauvet, lead system software engineer, Tucson Medical Center. ``We had evaluated other vendors tools over the years, but found that with IBM we could benefit from cost savings of up to 40 % with improved productivity and availability''.
IBM Database Management Systems for OS/390

High demand for data-intensive applications, such as terabyte-sized data warehouses to support high-volume e-businesses processing, is helping to fuel significant growth for DB2 and IMS for OS/390. With more than 9,000 licences worldwide, DB2 for OS/390 enterprise servers is the most widely accepted relational database management system in the industry today. DB2 for OS/390 supports key data applications for 80% of the Fortune 1000, and is capable of managing more than 4 million transactions per hour. DB2 for OS/390
provides customers with performance improvements for utilities, faster application processing, better query performance, greater capacity, more built-in functions and improved management capabilities.

IMS, IBM's premier hierarchical transaction and database management system for OS/390, is the most reliable database computing system capable of managing more than 79 million transactions a day. Ninety percent of the world's major corporations, including Allstate Insurance, Blue Cross and Blue Shield, Toronto Dominion Bank and Verizon, rely on IMS to ensure a continuous link to data that is accurate, up-to-date and quickly accessible.

Availability

IBM will begin to roll out its database tools on a worldwide basis starting in September with the complete toolset becoming available by the end of the year. IBM's Data Management tools support all current releases of DB2 and IMS for OS/390. IBM Global Financing offers attractive financing to credit-qualified commercial and government customers and business partners in more than 40 countries around the world.

Customers interested in migrating their competitive tools to IBM's Data Management tools will receive a discount on licence fees. In addition, IBM Data Management tools service offerings are available on a worldwide basis to support the entire life-cycle of a migration project - from requirements assessment to implementation and training.

About DB2 Universal Database

As the foundation for e-business, DB2 Universal Database is the industry's first multimedia, Web-ready relational database management system, strong enough to meet the demands of large corporations and flexible enough to serve medium-sized and small e-businesses. DB2 Universal Database combines integrated power for business intelligence, content management, enterprise information portals and e-business with industry-leading performance and reliability to drive the most demanding industry solutions. DB2 Universal Database
together with Internet technology makes information easily accessible, available and secure. There are more than 40 million DB2 Universal Database users from over 300,000 companies worldwide relying on IBM data management solutions. For additional information on IBM's data management solutions, please visit http://www.software.ibm.com/data.

(a) Indicates trademark or registered trademark of International

Business Machines Corporation or its subsidiaries. All other trademarks are properties of their respective companies.

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Contact(s) information

IBM
Public Relations Contacts:
914/766-1408
bosiol@us.ibm.com http://www.software.ibm.com

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