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New Study Says Small Business Saves Big With IBM eServer

Customers Reduce Costs, Improve Productivity by Consolidating on IBM eServer iSeries

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ARMONK, NY - 29 Jul 2003: A new study from International Data Corp. (IDC) finds small and medium-sized businesses can achieve significant cost savings by consolidating workloads onto IBM eServer iSeries from industry-standard Intel-architecture servers that were running Microsoft Windows and Linux workloads.

According to the IBM-sponsored report, the savings came in part from forgoing the purchase of additional industry-standard Intel-architecture servers -- which IDC calls x86 servers -- while continuing to run the Windows and Linux workloads on iSeries. The report notes that savings also came from reducing system administration headcount and avoiding operational costs associated with server downtime.

On average, the companies studied in the IDC report were able to forgo the purchase of five Intel-based servers for each iSeries that was deployed, reducing their staffing, maintenance and training expenses. In fact, according to the study, an investment in iSeries had an average payback period of just under nine months.

Further, the IDC study found that customers consolidating on iSeries reduced combined server downtime by more than 90% in the first year of iSeries operations and reduced costs by more than 50% over a three-year period, when compared to x86 servers that were running Windows or Linux. Companies participating in the study reduced their costs by an average of more than $180,000 annually.

"By consolidating the workloads of many underutilized, distributed x86 servers onto one or more IBM eServer iSeries systems, the customers we studied realized a return on their investment in iSeries hardware and software in less than a year," said Jean S. Bozman, research vice president at IDC. "Consolidation on iSeries demonstrated a significant, ongoing benefit to the business operations of the companies that we studied -- and their bottom line."

IBM eServer iSeries and Server Consolidation

"The iSeries' ability to virtualize and share resources, across multiple operating systems, delivers significant business advantage for small and medium-sized customers seeking the benefits of an open, on demand operating environment," said Al Zollar, general manager, IBM eServer iSeries. "Customers around the world are turning to iSeries to for its flexibility, responsiveness, and to gain increased control over their IT infrastructures."

Customers deploying iSeries technology for server consolidation include:

- Brenntag Nordic, a global distributor of chemical products based in Denmark, consolidated Windows servers onto two iSeries systems running Linux in dynamic logical partitions. The company can now deliver new applications in just one week, instead of four.

"The iSeries has enabled Brenntag Nordic to replace more than 37 Windows servers with Linux," said Michael S. Langborg, Financial Director, Brenntag Nordic. "The partitioning flexibility and storage consolidation provided by iSeries has provided a more stable and manageable solution. We have seen significant savings in administration costs, software licenses, and even in hardware acquisition."

- Bristol-Myers Squibb Australia, part of the worldwide medicines group of Bristol-Myers Company, consolidated 11 Windows NT servers onto one iSeries running Windows on Integrated xSeries Servers, housed inside the iSeries' cabinet.

"Consolidating Windows NT servers to an iSeries solution reduced our downtime and its associated costs," said Allan Green, Network Systems Manager, BMS. "Before the consolidation, BMS Australia experienced 2.5 hours of downtime per month. After consolidation, we experience just 0.001 hours per month. In the simplified environment, the time needed to identify and fix problems has also dropped considerably, from 120 minutes to 30 minutes."

- Huhtamaki Americas, a manufacturer of paper and packaging products for leading consumer brands based in De Soto, KS, consolidated approximately 40 Windows servers utilizing iSeries' Integrated xSeries Adapter card, which linked to free-standing IBM xSeries systems. The company estimates it reduced IT-related costs by some $350,000 per year and dramatically improved the availability of its systems.

"We have capitalized on the investment we made in iSeries -- and taken advantage of iSeries' reliability, integration and systems management -- and delivered it to the Windows 2000 Server world through iSeries' Integrated xSeries Adapter," says Brendan Carlton, Systems Administrator, Huhtamaki.

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A copy of the IDC report can be downloaded from www.ibm.com/servers/eserver/iseries/conslt/idc_roi/

. Information on IBM eServer is available at www.ibm.com/eserver

. IBM news releases and fact sheets are available at www.ibm.com

. The IBM eServer brand consists of the established IBM e-business logo with the following descriptive term "server" following it. The following are either trademarks or registered trademarks of International Business Machines Corporation in the United States or other countries or both: IBM, the IBM e-business logo, iSeries, xSeries. All others are trademarks or registered trademarks of their respective companies.

Source: "The ROI of Windows and Linux Server Consolidation on IBM eServer iSeries: Analysis and Case Studies in Small and Medium Businesses," International Data Corporation, July 2003.

Contact(s) information

Kirsten Graham
IBM Media Relations
(914) 766-4228
kirsteng@us.ibm.com