Butler Group Predicts IBM Mainframe Growth in Vertical and Emerging Markets

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ARMONK, NY - 26 Jan 2007: IBM (NYSE: IBM) today announced that independent IT research and advisory organization, The Butler Group, believes mainframe adoption will continue to grow in existing markets as well as emerging markets including China, India and South America due to continued advancements in Service Oriented Architecture (SOA) and virtualization technologies on the platform.

Butler Group's "The King is Dead -- Long Live the Mainframe" article specifically points to WebSphere Application Servers on System z as enhancing the ability to utilize SOA and Linux on the mainframe in providing virtualization tools for a single computing platform. Additionally, the report cites the mainframe's "green" capabilities, describing the power-saving features and small footprint (27-square feet) as, "desirable for large customers in the financial and government sectors."

Other key differentiators of the System z identified by the Butler Group include:

"In China and other emerging markets, companies are deploying mainframe technology to achieve the security, economic advantages and reliability required to keep pace in a globally integrated economy," said Jim Stallings, IBM general manager, System z. "Just as important, the new mainframe is expected to play a growing role in many vertical markets from financial services to healthcare and retail."

For more information about IBM, please visit www.ibm.com

For more information about Butler Group, please visit www.butlergroup.com