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IBM to Team with Software Firms to Offer Leading e-business Applications

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WHITE PLAINS, N.Y - 10 Nov 1999: -- IBM today announced that it is entering into a new range of strategic alliances that will couple applications from leading software firms with IBM's hardware, software, services, financing and unmatched industry expertise to deliver the best e-business solutions available to customers worldwide.

IBM will enter into strategic alliances with select software developers, including leading independent software vendors (ISVs), and propose their applications with IBM offerings to meet growing customer demand for end-to-end solutions. As an example, IBM cited its recent global strategic alliance to integrate Siebel Systems' multi-channel customer relationship management (CRM) software applications with IBM's e-business capabilities.

As part of these alliances, ISVs will gain access to new customers and revenue opportunities through IBM's extensive marketing, sales, and solutions resources. At the same time, ISVs will commit to increased use of IBM's leading middleware, server platforms and services.

The worldwide market for application development will grow from nearly $72 billion this year to about $132 billion by 2003, according to Dataquest, making the revenue opportunity of today's announcement for both ISVs and IBM substantial.

"This is another significant step in IBM's march to become a solutions company," said William A. Etherington, Senior Vice President and Group Executive, IBM Sales and Distribution. "Our commitment to bring customers e-business solutions does not end at IBM's borders. We're reaching out to combine the industry's best software applications with IBM technologies, services and knowledge of our customers' business issues to create powerful new solutions that no other IT company can match."

Today's announcement is reflected in the newly updated IBM Business Partner Charter. The charter, introduced in 1996, signaled a major commitment to work with Business Partners as the primary way to expand IBM's customer reach. Since 1996, the percentage of IBM's revenue going through Business Partners has doubled. Today's commitment to developers marks the beginning of another significant chapter in Business Partner cooperation, to the benefit of both ISVs and IBM.

Software developers who partner with IBM as part of this initiative gain access to extensive marketing resources available through PartnerWorld for Developers. This is a dedicated track of the PartnerWorld program that consolidates IBM's entire portfolio of offerings and marketing programs for all IBM Business Partners. These resources include:

Teaming with ISVs
In each of a range of market segments, IBM will select ISVs with software which leads in function, quality, and customer satisfaction, and then work in tandem with them to go to market through IBM's global resources. IBM today cited Siebel Systems as its first strategic alliance in CRM solutions.

"Our alliance with IBM will deliver clear competitive advantage for our joint customers," said Thomas M. Siebel, Chairman and CEO, Siebel Systems, Inc. "IBM's global reach, industry knowledge, and strengths in hardware, software, and services, combined with Siebel Systems' CRM market leadership, will deliver compelling value for customers seeking improved customer retention and loyalty."

Calling today's announcement an "all-around winning deal," Bob Timpson, general manager, Solution Developer Marketing, IBM, said, "Closer co-marketing with IBM is what our ISV partners have been telling us is at the top of their list. By matching our complementary strengths, we achieve a new level of relationship to the direct benefit of our customers."

PartnerWorld for Developers

Today's announcement builds on IBM's PartnerWorld for Developers program, which already has more than 40,000 company members, and helps software developers reach broader markets, lower their costs of doing business, and take their products to market faster. The program facilitates the development and sale of ISV applications running on IBM hardware and software platforms by providing technical services, marketing services, sales support, business services and information services. PartnerWorld for Developers offers developers software and tools, hardware discounts and leases, flexible leasing and financing options for developer customers, access to porting and testing facilities, on-line technical support, marketing assistance and much more. The program is focused on leading-edge technologies that enable developers to deliver complete e-business solutions to their customers.

More information can be obtained by visiting the PartnerWorld for Developers Web site at http://www.developer.ibm.com or by calling the PartnerWorld for Developers hotline at 1.800.627.8363 in North America. Outside of North America, the number is 1.770.835.9902. e-mail can be sent to PWDLine@us.ibm.com.

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