IBM and Invensys Announce Strategic Alliance to Improve Efficiency of Manufacturing Information Systems

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WHITE PLAINS, NY & HERNDON, VA USA - 05 Oct 2001: IBM and Invensys plc, a global leader in automation and controls, today announced a worldwide strategic alliance to deliver e-business solutions that will link plant floor, sensor-based applications to enterprise information systems, customers and suppliers. The two companies will target manufacturers that produce individual products such as airplanes,automobiles, electronics and other fabricated devices.

The two companies will jointly market a suite of Invensys Internet-enabled B2B, enterprise and shop floor products including the iBaan series, Wonderware Factory Suite (see attached releases), CAPS Logistics, and CRM product lines, all of which will be bundled with IBM's eServers.* Invensys will lead with IBM's e-business software platforms: WebSphere*, DB2* Universal Database and WebSphere MQ Series* in sales to new customers.

Both companies will also work together on joint solutions focused on using IBM's WebSphere products as the "glue" to link the plant floor with existing enterprise and B2B applications. This integration will provide manufacturing organizations with a powerful factory automation tool enhancing information flow and manufacturing efficiency.

This agreement extends an existing relationship between IBM Global Services and Baan, a global provider of B2B collaborative commerce solutions that is part of the Invensys Software Systems Division. IBM has fielded implementation factories for Baan in Denmark and Atlanta since 1998, providing rapid customization of Baan applications and server set-up prior to actual delivery. Currently more than 1,000 IBM consultants worldwide provide integration service offerings for Baan's application suite for customers such as Mercedes-Benz US, Inc., Boeing and Solectron. IBM Global Services has done significant development work linking Lotus Notes* and DB2 and Baan solutions. iBaan was the first enterprise application to ship on the IBM eServer, zSeries**. Additional services from IBM and Invensys under the new alliance include the expansion of the IBM Global Services relationship and new offerings fromIBM Global Financing, which provide qualified Invensys customer withan inexpensive, flexible financing option for their software and services acquisitions.

"Today manufacturers are demanding real-time, read-and-react capabilities to compress cycle times, reduce inventories, squeeze costs and eliminate inefficiencies from the value chain," said Steve Ward, General Manager, IBM Global Industrial Sector. "IBM's scalable, 'always-on' e-business infrastructure, combined with Invensys' leading suite of applications, provides manufacturers with 360- degree views of their processes from the boardroom to the plant floor - creating the fully collaborative manufacturing environments they require."

"Further aligning our industrial automation and ERP software with IBM's e-business software is another important link in the Invensys Sensor to BoardroomSM strategy offering manufacturers the ability to integrate information from the plant floor to the enterprise level and externally to customers and suppliers," said Bruce Henderson, division chief executive, Invensys Software Systems Division. "We are now able to link, real-time, the B2B value chain network into the world of automated shop floor solutions. IBM offers the innovative technologies needed to support manufacturing e-business and Invensys offers more integrated e-business solutions on IBM platforms than any of our competitors. Together, we will bring leading-edge solutions to our global customer base."

The Invensys strategic alliance is another example of IBM's commitment to go-to-market with leading independent software vendors through the PartnerWorld for Developers program. These alliances target industries such as financial services, retail, manufacturing, and solution segments including enterprise resource planning, supply chain management, customer relationship management and business intelligence. The goal is to provide developers with access to new customers and revenue opportunities through IBM's marketing, sales and solutions resources. Developers commit to lead with IBM's middleware, server platforms, and services.

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