IBM First Major Server Vendor to Ship Compact 16-Way Intel Processor-Based System

IBM surpasses HP as revenue leader in high-end, eight-way Intel-based servers; pushes to extend lead with new eServer

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ARMONK, N.Y. - 18 Dec 2002: IBM today announced that powerful new 16-processor models of its award-winning IBM eServer system, which enables customers to add computing power on a "pay-as-you-grow" basis, are now shipping in volume.

IBM is the only major vendor to offer customers a 16-way server based on the Intel Xeon processor MP in a compact, 14-inch high system, while Dell and HP have yet to make generally available eight-way systems based on this processor.

IBM grew revenue nearly three times faster than Dell in Intel processor-based servers in the third quarter of this year compared with the third quarter of last year and also outpaced HP in revenue growth, according to industry analyst IDC's Worldwide Quarterly Server Tracker (1). IBM also surpassed HP as the revenue leader in eight-way Intel processor-based servers in the third quarter of this year, gaining more than 26 points in the third quarter compared to the third quarter of last year, according to the same IDC data (2).

Mohawk Industries, Prudential Financial, TXU, Stock SpA and GEHE AG are among the many customers worldwide who have selected the eServer x440 for their core e-business workloads.

"The IBM eServer x440 has helped us reduce costs by consolidating some of our mission-critical applications onto a single, powerful server," said Jevin Jensen, director of technical services for Mohawk Industries, a leading supplier of residential and commercial flooring. "Based on the results we've seen, we're very interested in having the ability to scale to 16-processor eServer x440 models."

The eServer x440 is a groundbreaking Intel processor-based server designed to meet the performance, reliability and scalability requirements of corporate data center customers. Built with IBM Enterprise X-Architecture technology, the server helps customers adapt to unpredictable business growth through a flexible, "expand-on-demand" approach that allows them to add computing capacity as they need it, up to 16 processors.

IBM is the first major server vendor to offers customers a highly compact, rack-dense 16-way server based on the Intel Xeon processor MP. While a competitive Unisys 16-way system requires its own rack and takes up 40U (nearly six feet) of space, a fully configured 16-way eServer x440 fits into an industry-standard rack and takes up only 8U (14 inches) of space -- one-fifth the space of the Unisys machine.

"Customers in a variety of industries worldwide rely on the eServer x440 for their business-critical, data center workloads," said Deepak Advani, vice president, IBM eServer xSeries. "While Dell and HP have yet to make generally available eight-way machines based on the latest Intel Xeon processor MP, IBM continues to drive innovation in industry-standard servers with mainframe-inspired 16-processor systems that are designed to provide outstanding database performance for enterprise customers."

Since its introduction earlier this year, the eServer x440 has earned accolades from leading industry publications, including:

The new 16-way x440 models are available worldwide today, starting at $81,332 (3). IBM eServer xSeries systems support Linux or Microsoft Windows.