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Report: IBM #1 in Worldwide Server Revenue, #1 in Blade, Unix and High-End Server Share Revenue in 3Q06

IBM Leads in Blade Servers for 13 Straight Quarters

ARMONK, NY - 22 Nov 2006: IDC has announced that IBM (NYSE: IBM) continues to hold the number one position in worldwide server revenue share, growing revenue by 6.6 percent, year over year, and increasing its revenue share to 33.1 percent[1]. The growth was driven by IBM's continued leadership in the highly strategic mainframe and blade segments.

IBM led in blade server revenue share for the 13th consecutive quarter with 42.3 percent, seven points more than its closest competitor. During the quarter, IBM drove growth in blades with the introduction of the Cool Blue™ power management technologies and the launch of AMD Opteron™ processor-based blades.

IBM's 57.9 percent revenue share of high-end enterprise server sales[2] was driven by strong performance from IBM's System z mainframe which showed 24.5 percent growth in revenue over the same period in 2005.

"The System z business has surprised some with its strength and resilience in the face of an extremely competitive server technology market," said Bob Hoey, vice president of worldwide sales for IBM System z. "The positive revenue share numbers demonstrate that the mainframe is well positioned to take advantage of current trends. Some of the key values of the mainframe platform -- such as unparalleled security, stability and scalability -- have been part of the system from inception and are now more important to clients than ever before. The continued momentum of System z certainly comes as no surprise to IBM."

IBM also grew 8.3 percent in UNIX® server revenue share to 32 percent, thereby regaining the number one spot.

For more information, visit www.ibm.com

[1] Based on IDC Worldwide Quarterly Server Tracker, 3Q06, issued on November 21, 2006

[2] High-end enterprise servers are defined as those servers priced more than $500,000

IBM and Cool Blue are trademarks of IBM Corporation in the United States and/or other countries. All other company/product names and service marks may be trademarks or registered trademarks of their respective companies.

UNIX is a registered trademark of The OpenGroup in the United States and other countries.

AMD, the AMD Arrow logo, AMD Opteron, and combinations thereof, are trademarks of Advanced Micro Devices, Inc.

Contact(s) information

Joanna Brewer
IBM Media Relations
(415) 545-2270
jmbrewer@us.ibm.com

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Servers
System i, System p, System x, System z, BladeCenter, and Supercomputers

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