Report: IBM # 1 in Worldwide Web Hosting Market

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ARMONK, NY - 28 May 2003: IBM is the leading Web hosting services provider in the world, according to a new report on the Web hosting market published by Tier 1 Research, a leading technology research firm.

"In a year where stratification of the Web hosting marketplace was prevalent, IBM Global Services extended its leadership in the U.S. managed hosting market during 2002," said Andrew Schroepfer, President of Tier 1 Research. "Overall, IBM is the biggest market share gainer in the industry and is clearly reaping substantial benefits from its investments in e-business infrastructure. With its Global Services division, IBM is in a good position to continue to win in the hosting market as customers look for professional services to add more value than just infrastructure."

Including both colocation and managed hosting services, the worldwide hosting industry rose to $1.74 billion in 4Q02, a new quarterly record according to Tier 1 Research, bringing total 2002 hosting industry revenues to $6.65 billion. For 2003, Tier 1 Research estimates that the Web hosting market will grow by 15% to $7.65 billion.

"The latest figures from Tier 1 Research demonstrate IBM's worldwide leadership in Web hosting and clearly indicate that IBM's e-business hosting services are winning in the marketplace," said Jim Corgel, general manager of e-business hosting services for IBM Global Services. "Customers continue to turn to IBM for rapid, security rich and reliable Web hosting expertise and experience to help them transform their businesses into on demand businesses."

IBM Managed Hosting services provide flexible hosting infrastructure and server management configurations at three price points -- entry, standard and enhanced. Flexible pricing options allow companies to tailor the infrastructure and server management services they need by adding additional hardware or services at any time. This flexibility enables companies to expand their infrastructure easily as business demands increase. For more information, visit:

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