Report: IBM Growth Outpaces Sun in Midrange Unix Server Market

New M-80 Midrange Server Helps IBM Outperform Sun in Key Market Segment

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SOMERS, N.Y - 13 Dec 2000: IBM announced today that it outgrew Sun Microsystems in midrange UNIX server revenue growth and share point gain, significantly outpacing the year-to-year growth rate of its UNIX rival, according to a report released today by International Data Corporation (IDC). IBM's growth was fueled by the introduction of the M80 and other powerful new midrange servers with copper microprocessors into the heart of its UNIX product line. IDC's Q3CY00 server market report shows IBM's share of midrange UNIX revenue rose 71% year-to-year compared with a gain of 40% for Sun Microsystems over the same period. In the same timeframe, IBM's point share of the UNIX market segment rose eight points compared to just four points for Sun. The IDC defines midrange servers as systems costing between $100,000 and $1 million.

"IBM's introduction of the powerful copper-fortified M80, H80 and F80 systems to join the already successful RS/6000 S80 in its UNIX product lineup has clearly impacted the industry and helped improve the bottom line of our customers," said Mike Kerr, vice-president, IBM Web Servers. "The latest IDC report is a clear indication that customers are responding to IBM's simple proposition of offering better performance, scalability and reliability than comparable Sun systems at a lower cost."

Thousands of companies ranging from telecommunications giant Cable & Wireless to rental car pioneer Budget Rental Car are turning to ultra-powerful UNIX servers from IBM to meet their most demanding, mission-critical e-business needs. Powered by breakthrough copper microprocessor and Silicon-on-Insulator technology, IBM UNIX systems run AIX, IBM's award-winning UNIX operating system and are ideal for a wide-range of mission-critical applications, including enterprise resource planning (ERP), Web serving, business intelligence, customer relationship management and supply chain planning.

Pioneered by IBM researchers, copper microprocessor technology adds immense value. Smaller, denser, faster and cooler than their aluminum counterparts, copper chips are also more reliable and less expensive to manufacture. IBM's pSeries line of UNIX eServers is the only product line in the industry completely powered by copper.

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Additional information:

*IDC Quarterly Server Tracking Report through 3Q00.

IDC's Worldwide Quarterly Server Track is a quantitative tool for analyzing the global server market on a quarterly basis. The Tracker includes quarterly shipments (both ISS and upgrades) and revenues (both customer and factory), segmented by vendor, family, model, region, operating system, price band, CPU type, and architecture.

IBM, RS/6000, and AIX are registered trademarks or trademarks of the IBM Corporation in the United States, other countries, or both.

UNIX is a registered trademark in the United States and other countries, licensed exclusively through X/Open Company, Limited.