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IBM Announces New Initiative to Make it Easier for Sun and HP Customers to Join the Move to IBM System z Mainframe

New Technology, Services and Financial Incentives Offered

ARMONK, N.Y. - 29 May 2009: IBM (NYSE: IBM) today announced new services and programs to help more companies lower costs and reduce inefficiency by migrating from Sun and HP servers to IBM's System z, particularly on the Linux platform.

The new Server Consolidation and Migration Services offering, which includes patent-pending technology, can dramatically reduce the time and effort in moving applications from siloed, inefficiently used servers to a more cost-effective and easier-to-manage IBM mainframe infrastructure.

IBM also announced a program -- z Rewards -- that offers financial incentives to help customers take advantage of these migration services.

IBM's introduction of The Server Consolidation and Migration Services reflects continued investment by IBM in Linux on System z. Nearly 2,800 of the 5,000 unique applications available on the System z platform are Linux-based. Linux accounted for about half of the roughly 1,000 new or updated applications produced for the IBM mainframe in 2008. More than 40 percent of new System z customers last year installed Linux.

The System z Linux environment has proven popular with businesses as a means to consolidate workloads and deploy new mission-critical mainframe applications that are well suited for Linux. Often, these Linux applications on System z work in concert with the z/OS environment to enable an end-to-end solution within the same mainframe.

The Server Consolidation and Migration Services originated in IBM's Global Technology Services unit and has been used successfully in IBM's own data center consolidation efforts.

By replacing slow, manual methods with an automated solution, The Server Consolidation and Migration Services can reduce server consolidation and application migration efforts from months to weeks.

Under the new z Rewards program, companies that purchase or upgrade to a new qualifying z10 Enterprise Class or Business Class mainframe in order to consolidate competitive Sun and HP systems can earn points that can be redeemed for certain IBM migration services.

IBM migration services are delivered by experienced IBM and IBM Business Partner consultants who have participated in helping clients who have already moved up to IBM. Interested parties should contact their local System z sales representative or Authorized System z Business Partner for maximum rewards eligibility. U.S. commercial, state and local government or education customers can participate. U.S. federal government customers can call 800-333-6705 to determine eligibility.

The new offerings complement IBM's expansion in September 2008 of its Migration Factory program for IBM Power Systems to System z. That program provides clients considering a move to System z with services that aid in their evaluation process. The new Server Consolidation and Migration Services offering provides new technologies and services to make such migrations easier.

In the last year, IBM already has migrated more than 150 customers across a variety of industries worldwide from competitive systems to IBM mainframes.

Competitive wins like these helped IBM System z revenue share for servers costing $250,000 or more nearly doubled from 17 percent to 32 this decade, according to IDC. Over that same period, HP has remained flat while Sun has lost share.

About IBM

For more information on today's announcement, please visit: http:/www.ibm.com/systems/migratetoibm/systems/z/rewards.html

A demo can be seen at: http:/www.ibm.com/systems/migratetoibm/systems/z/demo.html

Contact(s) information

Steve Eisenstadt
IBM Systems and Technology Group
914-766-8009
saeisens@us.ibm.com

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