IBM launches hosted Storage Services

Network-Delivered Storage is Part of Strategic Initiative to Deliver "IT-on-Demand"

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SOMERS, NY - 27 Sep 2000: Underscoring its commitment to deliver a computing utility that provides "IT-on-demand" IBM Global Services today said it will add hosted storage and storage management to its portfolio of network-delivered services.

"IT-on-demand" refers to the emerging model of outsourcing that uses the network to deliver technology and services on an as-needed, pay-as-you-go basis. In addition to hosted storage and storage management, IBM Global Services offers Web hosting and solutions for e-marketplaces and application service providers. The company also is developing network-delivered services for the wireless market.

According to Ginni Rometty, general manager of strategy for IBM Global Services, network-delivered services are a natural extension of the company's strategic outsourcing business and its extensive consulting and integration skills. Industry analysts believe the total market for network-delivered services could exceed $45 billion by 2003, with the storage segment accounting for as much as $8 billion.

"As companies focus on harnessing the potential of e-business, they are looking to outsource as much of their day-to-day technology operations as possible," said Rometty. "With network-delivered services, companies get the technology they need when they need it while also reducing capital expenditures and staffing requirements."

IBM's Storage Services Play

Web-based marketing, business intelligence and other e-business capabilities are creating an unprecedented need for fast, secure access to stored data across a range of applications and platforms. These new demands for data, coupled with escalating storage management costs and a shortage of skills to deploy new storage technologies, are driving demand for network-delivered solutions.

"In the e-business environment, storage requirements are becoming increasingly complex," said Roger Schwanhausser, director of storage and storage area network services for IBM Global Services. "As businesses become more information-centric, they must be able to catalog and distribute growing volumes of data, and handle the flow of content-rich audio and video traffic over the network. IBM offers a team of storage experts who can manage all of that complexity for them."

IBM's Managed Storage Services gives customers flexible options for purchasing storage capacity and management services on-site at the customer premise, or off-site at one of more than 175 IBM data centers located around the world. Customers may also choose a hybrid solution, keeping some data in-house and outsourcing the rest.

ChartOne, an industry leader in the administration and management of medical records for healthcare providers nationwide, has selected IBM to provide a hosted storage solution. ChartOne's ASP solution captures patient records using digital imaging and stores the information in a secure, HIPAA-compliant (Health Insurance Portability and Accountability Act) environment. The records are accessed by authorized users through a secure thin client.

"Internet-based imaging, storage and access of patient charts is an ideal solution for the healthcare industry, as it helps reduce mountains of paper and significantly lowers administrative costs. But it is also very storage intensive. A hosted storage solution can give us the capacity we need, as we need it, without the large upfront capital investment," said Ivar Chhina, president and COO, ChartOne.

Regardless of where the data are housed, IBM offers consulting, planning and implementation services to meet each customer's unique data performance and availability requirements. IBM's specialists in customer relationship management, business intelligence and supply chain management can design and implement systems and processes to capitalize on real time e-business information and decision support for real-time action. To help ensure the integrity of their data, customers may also take advantage of IBM's security and business continuity and recovery services.

In addition to offering Managed Storage Services directly to customers, IBM will deliver storage services through ISPs, ASPs and other leading hosting service providers, as well as through IBM's global network of storage business partners.

IBM's Managed Storage Services complement the company's broad portfolio of storage solutions. IBM is the world's largest storage services provider, offering storage assessment, strategy, design and implementation; management of multi-vendor storage solutions; storage area network solutions; and performance management, capacity planning and testing services. IBM is also a leading provider of open storage networking solutions -- including the Shark Enterprise Storage Server -- and advocates interoperability among all vendors.

IBM Global Services is the world's largest information technology services provider, with 1999 revenues of more than $32 billion. In addition to consulting, IBM Global Services is the world leader in IT outsourcing, hosting and systems services. IBM Global Services employs more than 140,000 professionals serving customers in 160 countries.

IBM Corporation is the world's largest information technology company, with 80 years of leadership in helping businesses deploy technology for business advantage.

IBM's Managed Storage Services are available immediately in the U.S. with plans to roll-out worldwide in the coming months. For more information, visit

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