IBM Partner Program Fuels Unprecedented Levels of Innovation for Clients on the IBM System i(TM)

ARMONK, NY - 10 Mar 2006: IBM today announced the outstanding results of the System i™ Initiative for Innovation program launched a year ago at Partnerworld 2005, which has resulted in an explosion of System i applications encompassing new and emerging areas including RFID, web portals, security and compliance and SOA.

The highlights of the Initiative for Innovation's programs to date include:

• More than 1,700 new or enhanced solutions for System i, including i5/OS, Linux and AIX operating systems;
• 600 new or enhanced i5/OS applications developed for the System i family by software partners and application tool developers with another 500 in the pipeline;
• More than 2,500 new clients delivered for IBM and its partners;
• 71 new tool vendors have become members of the program, bringing the total membership to 126;
• 242 ServerProven products from IBM tool members are now highlighted on the IBM System i Developer Roadmap; and
• 1,360 System i independent software vendors (ISVs) are leveraging the benefits of the PartnerWorld Industry Networks Program.

"Working in partnership with our ISV and developer community, we exceeded our aggressive goals for 2005 to reinvigorate the platform and seed innovation for the midmarket," said Mark Shearer, general manager, IBM System i. "In 2006, we're focusing on accelerating this growth, with emphasis on new tools for hot areas like security and compliance. Ultimately, we hope that IBM's investment will result in billions of dollars in increased revenue for our partners, large and small, successfully building their businesses and enabling us to deliver the best products to the market together."

System i business partners have been able to expand their solutions portfolio, reach these new markets and serve more clients through tool and application development support, as well as relationship building and networking. Their success in the marketplace speaks to the value of the Initiative:

• Harris Data:  Harris Data of Brookfield, Wis., which develops enterprise software solutions such as ERP and CRM exclusively for the System i platform, reports it drove 90 percent of its 2005 sales through its application software enhancement efforts supported by the Initiative.
• Valid Technologies: With the help of the Initiative, Valid Technologies of Boca Raton, Fla., developed a biometric verification of user identity solution on System i5 that leverages the platform's advanced security architecture. Valid's System i5 solution uses fingerprint verification of identity to secure the user's login applications and transactions. The Initiative provided Valid with access to technical and marketing resources, helped open doors to new partnerships, and introduced its best-in-class security solution to small and medium-sized companies.
• ecom: On the recommendation of a client, Germany-based ecom, which had no prior relationship with IBM, tapped the Initiative's tools and services to port its WEBfactory software to System i5. The WEBfactory software helps customers analyze and improve profitability for production processes by integrating real-time production data with business-oriented ERP data. With a single integrated window, customers can virtualize dozens of production control systems on System i5 and access the entire production control process by remote web access.
• Reva Systems: Reva, an emerging company in Chelmsford, Mass. focused on RFID solutions, utilized the Initiative to validate its RFID solution's interoperability and fit within System i5, Linux, Java™, DB2 and WebSphere. Taking advantage of IBM support through planning, access to product specialists and innovation centers, Reva was able to quickly develop interfaces between its Reva Tag Acquisition Processor (TAP) device and System i5-based applications to deliver effective customer solutions. Working with IBM on joint customer outreach, Reva is now helping retail, manufacturing and pharmaceutical companies innovate their businesses with RFID.
• Provenir: a provider of lifecycle decision-making software for financial institutions with offices in Parsippany, N.J., London, and Hong Kong, turned to the Initiative to test its Java applications after a major customer requested Provenir certify on the platform. Since then, Provenir has expanded its support of System i5 and now views i5/OS as an important global competitive differentiator for its sales.
• BlueWare: BlueWare of Cadillac, Mich., offers a suite of simple-to-use medical record management systems used in more than 180 community hospitals in the U.S. and the U.K. Training and support on Java, XML and WebSphere Portal from the Initiative, helped BlueWare's research and development team improve its System i solutions and extend sales in the community health industry, where System i is estimated to be represented at about half of the 5,000 hospitals in the U.S.
• Actimize: Actimize of New York provides fraud detection and prevention as well as compliance solutions to financial institutions. System i5, with its security and other enterprise features, is a good fit for customers deploying Actimize solutions.  Through the Initiative, Actimize worked with IBM on testing, planning and marketing, opening up new opportunities in the finance sector and bringing enhanced value to existing customers.

"IBM's commitment to the System i5 platform as demonstrated in the Initiative has given the marketplace a great boost of confidence," said Eric F. Figura, director of sales and marketing at Business Computer Design International, Inc., a leading software productivity tools vendor. "This has allowed BCD to grow its business, including WebSmart System i-Web Development tool sales, by over 20 percent in the past 12 months, as well as add 40 new Business Partners to our network."

Anthony International, the world's foremost supplier of refrigerated glass doors, chose Valid's biometric user verification tool on the System i platform, created though the help of the Initiative.

"Anthony International is using Valid's new biometric tool to dramatically increase the security and reliability of our time and attendance tracking for 500 employees across a campus with six buildings," said Hal Hanson, CIO of Anthony International. "The solution can be distributed quickly and cost-effectively anywhere in the company. It added security and accountability to our existing System i applications, giving our company significant business advantages."

The 2006 Initiative for Innovation Program
IBM remains committed to the System i Initiative for Innovation, striving to help those organizations that joined in 2005 accelerate the creation and delivery of new solutions. Additionally, IBM aims to continue to build the System i solutions portfolio by reaching out to those ISVs who are new to System i platform. To promote these efforts in 2006, IBM is announcing several program additions including open roadmaps for SOA, Web Services and Workplace, and expanding reach to Linux, AIX and Windows-based solutions alongside i5/OS. It is also launching a venture capital outreach effort.

"As a venture capital firm, it is very refreshing to see IBM's new energy in implementing its Innovation Initiative," said Kevin Scott, partner at 3i, a world leading venture capital and private equity firm. "The System i5 group seems driven to create new value for its customers, as well as mutual opportunity for our portfolio ISVs -- such as Intalio -- and IBM."

"With more than 500 applications already in the pipeline, and the determination to reach new emerging markets with the best products available, IBM and the System i community are looking forward to continued success for the platform and its community into 2006," Shearer said.

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