IBM Increases Momentum With 61 Alliances

IBM Gains Market Share, New Applications, Widens Breadth Of Offerings

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SAN FRANCISCO - 14 Aug 2001: IBM's strategic alliance initiative has helped IBM move ahead of the competition in terms of market share gains and breadth of offering for IT customers, IBM announced here today at the opening of "Solutions, the IBM Technical Conference.'' This year alone, IBM has signed 61 new deals, 42 alliance lites and 19 strategic alliances.

IBM's strategic alliance strategy has committed market-leading software developers to raise the percentage of applications developed and marketed on IBM infrastructure by 50 percent to create leading joint solutions customers demand, according to industry analysts.

IBM's WebSphere(1) and DB2(1) products have gained considerable market share at the expense of BEA and Oracle in the Web Application Server and UNIX database markets, IBM has found. IBM servers and IBM Global Services, the biggest beneficiary of the alliance strategy and a growth engine of IBM, have gained share over Sun Microsystems, Hewlett Packard and Compaq. At the same time, numerous IBM strategic alliance partners such as Siebel Systems, PeopleSoft and SAP have recently reported impressive double-digit revenue growth.

IBM's alliances are generating market share, influence and revenue -- over $1 billion year-to-date, much of it incremental to IBM at the direct expense of competitors. The alliances generated $750 million in revenue to IBM in 2000, the initiative's first full year.

"While our competitors compete with partners or scale back partner initiatives, IBM signs and supports more partners eager to ally with the undisputed technology powerhouse and momentum leader,'' said Robert C. Timpson, General Manager, IBM Developer Relations. "More developers are learning what IBM provides that our competitors cannot duplicate -- a 25,000 strong sales force with enterprise customer access and the largest global services organization. This year alone, major players SAP, JD Edwards, and now SAS Institute, among others, along with 42 niche market leaders have signed new agreements, expanding the breadth of IBM and partners' joint offerings to provide best-of-breed solutions for virtually every customer segment need worldwide.''

IBM's approach is to forge alliances with companies that have attained leading market share and customer satisfaction in their respective markets. Many of these organizations were previously working with IBM competitors, so the IBM alliance agreements tend to shift the share of application sales on vendor platforms directly from competitors to IBM.

SAS Institute and edocs have recently signed new strategic alliance agreements with IBM, which will focus on each company's specialty in business intelligence data mining and telecommunications solutions, respectively. The combination of IBM with powerful SAS analytical applications and data warehousing technology offers organizations the most complete, reliable and effective enterprise solutions available today for building and maintaining lasting, profitable relationships with their customers.

IBM and edocs today announced a global strategic alliance to offer telecommunications service providers a broad suite of e-business services and solutions for online account management and e-billing. The strategic alliance is directed at companies in North America, Europe and the Asia/Pacific region, and provides for extensive integration of edocs' eaSuite(2) with IBM hardware and software.

IBM's alliance lite program, a derivative of the strategic alliance initiative, has exploded with 42 new agreements signed since the program's launch in March 2001. As part of the program, IBM "democratized'' its ISV strategy, making it possible for small and medium size commercial developers with leading offerings and customer satisfaction to benefit from a co-marketing alliance with IBM. Alliance lites are typically country- or territory-specific, with commensurate commitments and revenue targets. Among the markets served by the alliance lite Business Partners are communications, customer relationship management and the public sector.

Recently signed alliance lites from North America, Europe, the Middle East, Africa and the Asia-Pacific regions, cover a range of markets from telecommunications developers Bison Deutschland Gmbh, Swissrisk and Micromuse (U.S.) to healthcare solution provider Qtech Business Systems, an Australian healthcare application developer. Other European companies in the alliance lite program include Cash-U, Mapics, Ordat, Oy Arbonaut, Webraska and Yomi Media Oy. Asian companies in the alliance include Talisma, Sundata, Qtech, INTAZ and Neo Genius.

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