IBM to Offer Dell Customers a Technology Lifeline

New Program to Help Dell Customers as Dell Sits on the Sideline in High End Intel and Blade Servers

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ARMONK, N.Y. - 19 Aug 2003: IBM today announced it would offer help for Dell customers who are unable to leverage major developments in server technology that reduce operational costs and the complexity of IT infrastructures.

Dell recently announced it would stop producing high end Intel servers. Advances in these technologies, including scalable Intel and blade servers, have contributed to IBM growing Intel server revenue faster then Dell in each of the past four quarters. (1)

To help customers constrained by Dell's decision, IBM will unleash a team of technical and sales specialist dedicated to helping Dell customers. This team will evaluate customers' existing Dell infrastructure and offer an analysis of how scalable Intel-based eServer systems can help lower costs and simplify systems management. Qualified Dell customers can select a number of pre-configured eServer systems that scale up to 16 Intel processors or scale out with blade servers. Selected eServer systems are available to Dell customers at a savings of up to 15 percent. IBM will also assist Dell customers to migrate workloads to the new eServer systems.

Based on one study, average Intel based server utilization is typically around five percent(2), meaning that 95 percent of the time most Intel servers are sitting idle. Server consolidation - the strategy of reducing multiple smaller servers onto few higher end systems - is a key to increasing the utilization rate, lowering costs and simplifying systems management.

"With server utilization rates so low consolidation is a top concern for our customers," said Deepak Advani, Vice President, IBM eServer xSeries. "We expect that Dell customers will be excited to experience the benefits IBM Intel-based server customers have been enjoying for some time; scaling out with blade servers and scaling up with building block like systems that today scale to 16 Intel processors and will soon scale to 32 processors."

IBM's leadership is a direct result of investments made years ago in Enterprise X-Architecture (EXA), which enables Intel based eServer systems to scale to previous unattainable levels. EXA-based systems are now being widely deployed by customers in all industries. IBM has already shipped more than 10,000 eServer x440 systems since it was announced last year. These systems are capable of scaling up to 16 Intel processors and customers are showing interest in the latest IBM eServer system that will soon scale to 32 Intel processors. Additionally, IBM has sold 21,000 blade servers since they began shipping in December of last year.

Rapsheets, a Memphis-based firm that performs millions of criminal records searches, has already selected IBM's Scale Up/Scale Out model over Dell. Rapsheets consolidated its database servers onto an IBM eServer x440 because of its ability to scale to 16 processors. Additionally the company selected IBM eServer BladeCenter as its front end web server that provides its customers access to search criminal records. As Rapsheets customer base grows, additional blade servers can be easily added to meet demand.

"Our records database has grown by 20 percent in the past six months and we continue to grow at a rapid pace," said Keith Grimes, chief technology officer of Rapsheets. "The capability to rapidly add processors will allow us to give our customers better response to their queries. The addition of the IBM eServer x440 to our database will deliver results that further bolster the company's position as the nation's leading provider of instant criminal records searches."

This targeted IBM program to help Dell customers will be available through the end of the year.