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IBM Grows Revenue Across $250K+, UNIX and x86 Servers, Gartner Says

In Second Quarter, IBM Is World's Number One Server Vendor by Revenue

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ARMONK, NY - 21 Aug 2007: IBM (NYSE: IBM) increased server revenue in its $250K+, UNIX and x86 servers in the second quarter and is the world's leading server vendor based on revenue, according to analyst firm Gartner.(1)

"We think these revenue share results show that IBM is benefiting from the trend toward server consolidation," said Rich Lechner, vice president, IBM virtualization. "We are seeing organizations shift applications to a smaller number of larger servers that are able to virtualize resources."

According to Gartner, IBM's revenue growth in the second quarter (versus the year-ago quarter) was as follows:

Server                 Revenue Growth System

p UNIX                + seven percent

System x (x86)    + 16 percent

System z             + five percent

In the quarter, IBM had a 29.8 percent revenue share of the worldwide server marketplace, more than any other vendor, according to the Gartner report. IBM's total server revenue increased by 6.5 percent in the quarter versus the year ago quarter, Gartner said.

IBM also gained revenue share in the Americas and Asia Pacific regions -- including Japan -- where it remained the leading server vendor by revenue.

"Today's customers are looking to substantially reduce energy costs while increasing security for a broad spectrum of business transactions," said Lechner. "IBM, which pioneered virtualization on the mainframe decades ago, provides outstanding virtualization technology, helping to enable companies to dramatically reduce data center sprawl and redeploy resources to drive business value."

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1 Gartner, Inc. "Servers Quarterly Statistics Worldwide: Database" by Adrian O'Connell et al, August 21, 2007