IBM Takes Top Honors In VARBusiness Annual Report Card Survey

Three First-Place Wins And Repeat Win For Lifetime Achievement Award Affirm IBM As Business Partners' Top Choice

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SAN DIEGO, CA - 23 Aug 2002: VARBusiness today announced the results of its 17th Annual Report Card awards, which included three first-place honors for IBM in the Midrange Servers, Advanced Desktops/Workstations and Database Software categories as well as recognition for excellence in partnership and product innovation in Network Storage and support in Applications Development & Deployment Tools categories. IBM also earned the Lifetime Achievement Award for the second time in the award's four-year history. This award recognizes the consistent high quality and value of the programs and offerings IBM has provided to the thousands of Solution Providers participating in the poll. The VARBusiness Annual Report Card awards were presented last night at the Breakaway XChange conference in San Diego.

"We're very pleased to be the recipient of these distinguished awards. Our 90,000-plus Business Partners are extremely important to IBM,'' said Mark Olmstead, Director, Business Partner Satisfaction and Global Alliances. ''They drive one-third of IBM's revenue and they are key to our growth and competitiveness. This year's results affirm once again that IBM is providing the right technology, software and service offerings that partners need for competitive advantage in today's marketplace.

IBM eServer iSeries* garnered a first place overall win in the Midrange Servers category for the fourth year in a row and won in all three sub-categories for products/pricing, support and partnership. iSeries is arguably the most popular midmarket mainframe-class server in history with more than 250,000 customers in 150 countries. Combining traditional mainframe strengths of reliability, scalability, security and service with the industry's hottest applications, iSeries is a highly versatile, integrated business server capable of managing and connecting a company's core business to e-business. Also, the IBM eServer pSeries*, with its highest score ever, was voted number two in the same category. Leveraging the strength of IBM's POWER4 processor technology, IBM pSeries midrange servers offer an excellent price/performance ratio typically found in high-end systems. These IBM UNIX servers redefine affordability and IT flexibility for the midrange and serve as an ideal solution for industrial, distribution and financial services and small to medium business customers.

IBM NetVista* was voted best overall in the Advanced Desktops/Workstations category and won first place in the product innovation and support sub-categories. Through its research and development labs, IBM continues to solve business problems facing customers in the areas of PC security, wireless and manageability.

IBM's worldwide market share leading DB2 Database Software swept all three sub-categories and was voted best overall Database Software. IBM attributes this success to its industry-leading innovative technology, commitment to customer satisfaction, support and services and particularly its strong partnerships. In 2001, IBM's total number of data management partnerships grew to over 16,000 partners that are building solutions atop of DB2 data management software and over 26,000 applications around IBM database middleware. IBM's success in the marketplace is a direct result of its popularity with partners. In just six years, revenue derived from partners, has grown from zero percent to 44% of IBM's total data management revenue. IBM has been particularly successful in penetrating the small and medium business space, an area of which IBM's data management business grew some 128% in 2001.

IBM secured a first place sub-category win with WebSphere* for Support in the Applications Development & Deployment Tools category.

IBM also received first place recognitions for Partnership and Product Innovation in the Network Storage category. More than 50% of its business is channel or partner driven, with this figure expected to grow even more in the near future. A large part of its partner sales can be attributed to IBM's exceptionally successful Total Storage Solution Center initiative, which has seen the establishment of more than 140 customer service centers worldwide, designed to provide real time storage configuration testing and tuning facilities.

Now in its 17th year, the VARBusiness ARC Awards recognize outstanding partner programs in 15 product categories including desktops, servers, storage management, Internet application server software and networking hardware. Winners were selected based on the survey results of more than 5,000 systems integrators, IT consulting organizations, value-added resellers (VARs), Solution Providers and software developers/ISVs.

Awards were presented to executives of the winning companies at the multimedia ceremony hosted by CMP Vice President/VARBusiness Editorial Director, Robert C. DeMarzo, and VARBusiness Publisher Michael R. Uliss. American Comedy Awards Stand-Up Comedian of the Year, John Pinette provided the evening's entertainment.

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