IBM and Pacific HiTech Team Up to Promote Linux Solutions

Alliance Paves Way for DB2 Universal Database Shipments with TurboLinux

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SOMERS, NY - 25 May 1999: ... IBM and Pacific HiTech, Inc. announced today an alliance that will enable, for the first time, a commercial distributor of Linux* to ship the industry's top database, IBM DB2** Universal Database, with its Linux operating system suite, TurboLinux***. The alliance also includes joint development, marketing, education and training, and support initiatives designed to help companies deploy Linux, the open-source operating system.

Pacific HiTech, the leading Linux provider in the Pacific Rim, is extending its market reach to North America. The alliance signifies the first major partnership for Pacific HiTech that enables a substantial sales and marketing push in the United States and Canada. Pacific HiTech will sell integrated IBM middleware -- beginning with DB2 Universal Database -- and TurboLinux products through its channels in Asia and North America.

In addition to the software bundling agreement, IBM and Pacific HiTech will establish and maintain a virtual development lab, where they will collaborate on porting future IBM middleware products to TurboLinux. This collaboration will optimize IBM's software to run with TurboLinux and bring IBM's middleware solutions to market on TurboLinux more rapidly.

Depending on customer needs, IBM will offer 24-hour-a-day voice support for TurboLinux, with technical support ranging from answering usage questions to in-depth problem determination. IBM will also draw on Pacific HiTech resources when needed to provide technical support to TurboLinux customers.

"This alliance is an important step forward for Linux because it joins high-performance Linux solutions and enterprise applications with the benefits of 24x7 global support from the world's largest information technology company," said Cliff Miller, president and chief executive officer of Pacific HiTech. "Pacific HiTech's competitive advantage is integrating industry leading commercial software with Linux, which reduces installation time and adds higher value to end users and business partners."

IBM has pledged to make its flagship software products available for Linux. IBM's DB2 Universal Database, On-Demand** Server and key WebSphere** web application server products already are in beta testing. IBM's AFS** enterprise file server, Host On-Demand Java-based emulator, and ViaVoice** speech recognition technology for Linux are generally available. IBM's subsidiary, Lotus Development Corp., also plans Lotus Domino** support. Through the alliance between IBM and Pacific HiTech, these flagship products will support TurboLinux this year.

"We have customers in every geography asking for Linux solutions," said Dick Sullivan, vice president, Integrated Solutions, IBM Software. "Collaborations like our agreement with Pacific HiTech will help IBM bring enterprise solutions to our customers faster and with the same high level of support for Linux as we provide for other operating systems."

According to International Data Corporation (IDC), a leading industry analyst firm, there are currently more than 10 million Linux users worldwide. In 1998, the Linux server market grew by 212 percent and nearly 18 percent of all server licenses sold last year were Linux, according to IDC.

"IDC believes that over the next six to eight months, with targeted applications, the Linux operating system has the opportunity to gain share in the application server arena," said William Peterson, research manager, IDC. "The agreement between Pacific HiTech and IBM to integrate DB2 Universal Database into the TurboLinux suite will provide Pacific HiTech with a pre-packaged entry into the application server market."

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Information Management, Lotus, Tivoli, Rational, WebSphere, Open standards, open source