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Report: IBM #1 in Worldwide Server Revenue for 2006, According to Analyst Report

IBM Maintains Leadership in Blade and UNIX Servers

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Armonk, NY - 26 Feb 2007: IDC reported today that IBM (NYSE: IBM) continues to hold the number one position in worldwide server revenue share with 32.8 percent revenue share for 2006 [1].

IBM’s leadership position in global server revenue in 2006 was augmented by noteworthy revenue growth in its System z™ mainframe business [2].

In 2006, IBM introduced the System z Business Class mainframe, teamed with industry leaders such as Oracle and SAP to drive innovation on the platform, and extended its customer base and drove new workloads onto the platform through specialty processors for Linux® and Java™ workloads.

"Innovation and collaboration with clients drives leadership in systems, which is one of the key reasons why IBM continues to lead in server revenue share," said Bill Zeitler, senior vice president and group executive for IBM Systems & Technology Group. "We believe there are areas that continue to be underserved by innovation, such as small and medium size businesses, which will be a focus for IBM in 2007."

According to IDC, IBM also grew revenue with its System x business by 6 percent YTY in 2006 [3]. IBM led the year in blades with 40 percent of blade revenue share for 2006 [4]. IBM this year introduced two new high performance BladeCenter® systems, BladeCenter H and BladeCenter HT, which allow data to travel up to 10 times faster than previously possible across corporate networks with1Gb equipment.

IBM also maintained its leadership in UNIX® servers with 32.0% [5] percent server revenue share in 2006.

1 [1] IDC Worldwide Quarterly Server Tracker, 4Q06, issued on February 26, 2007

2 [2] IDC Worldwide Quarterly Server Tracker, 4Q06, issued on February 26, 2007

3 [3] IDC Worldwide Quarterly Server Tracker, 4Q06, issued on February 26, 2007

4 [4] IDC Worldwide Quarterly Server Tracker, 4Q06, issued on February 26, 2007

5 [5] IDC Worldwide Quarterly Server Tracker, 4Q06, issued on February 26, 2007

IBM, System z, System x, and BladeCenter are trademarks of International Business Machines Corporation in the United States, other countries, or both.

Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries, or both.

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

Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both.