IBM to Offer Businesses Choice of 'Virtual Servers' on Demand

With "IBM Virtual Server Services" Customers Can Remotely Tap Into Their Choice of Virtual Computing Power

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ARMONK, N.Y. - 30 Sep 2003: IBM today announced that it has expanded its services that enable businesses to access computing capacity on demand. Using IBM's new Virtual Server Service, customers can tap into virtual server capacity on hosted IBM eServer xSeries®, pSeries(TM) and iSeries(TM) systems, paying only for the computing power and capacity they require.

IBM is the first vendor to offer businesses a choice of Intel-based, Unix-based, or Linux-based server processing and network capacity delivered on demand. IBM became the first computer company to offer remotely-delivered virtual server capacity when it introduced Linux virtual services on eServer zSeries® mainframe systems in July of 2002.

With access to virtual server solutions on every IBM eServer(TM) platform, businesses now have the potential to achieve from 15 to 30 percent cost savings over deploying solutions in-house.

"On demand businesses require secure, flexible environments to deploy critical applications and services," said Jim Corgel, general manager, IBM e-business Hosting Services. "We are addressing this need by providing customers with a comprehensive, scalable virtual service, on multiple technology platforms, to help them reduce costs and compete better."

Instead of the physical application servers they rely on now, IBM Virtual Server Services customers will tap into "virtual servers" on IBM eServer xSeries®, pSeries(TM) and iSeries(TM) systems in a security-enhanced hosting environment, paying only for the computing power and capacity they require.

Multiple, scalable server technology platforms allow customers to deploy applications or services on varied technology platforms without having to manage their own systems or overinvesting in unused resources, therefore reducing time to market and total cost of ownership for the customer. With virtual servers, customers are able to deploy single or multiple applications or services within the virtual machine and pay only for the server resources used.

IBM's Virtual Server Services help customers to systematically decrease capital spending through consolidation of their current Windows, AIX®- or OS/400®-based infrastructure. They can benefit from standardization of tools and methods across their disparate systems and seize control of their costs with usage-based pricing. Virtual server solutions are deployed from an IBM Service Delivery Center and managed by IBM Global Services.

By adding additional virtual infrastructure services, such as Internet connectivity, caching, storage and backup services, and virtual firewall and load balancing through IBM's partnership with Inkra Networks, customers can experience an end-to-end virtual hosting solution with total usage-based pricing.

Customers will be charged a one-time setup fee, followed by variable monthly recurring charges for the computing capacity consumed.

IBM Virtual eServer xSeries®
IBM Virtual eServer xSeries® provides customers with a scalable, virtualized server platform to deploy Microsoft® Windows®-based applications applications or services. IBM supplies and manages the physical server(s) and the infrastructure that comprise the virtual server environment, using VMware to implement a customer's virtual machine. Customers share the infrastructure and each customer's virtual servers are isolated and independent of other virtual servers.

IBM Virtual eServer iSeries(TM)
IBM Virtual eServer iSeries(TM) offers customers a highly integrated, flexible server with a wide range of applications supported on the OS/400 operating environment. As the need for computing resources fluctuate, the virtual eServer iSeries capacity on demand capabilities allows customers to turn on extra processing power when they need it, and turn it off when they don't.

The eServer iSeries has a legendary track-record of reliability, and self-managing, self-healing features that can help increase uptime, optimize performance and identify and help fix problems before they occur.

IBM Virtual eServer pSeries(TM)
IBM Virtual eServer pSeries(TM) offers customers a usage-based and capacity on demand approach for running their AIX®-based applications on standard IBM hardware and software platforms supported by a standard set of services.

By tapping into Virtual eServer pSeries(TM), applications and services can be deployed more quickly since capacity is provided to the customer on demand. Unpredictable workload requirements are managed and operating expenses are reduced due to the elimination of unnecessary servers.

IBM Linux Virtual Services (July 2002)
IBM Linux Virtual Services makes the power and reliability of the IBM zSeries mainframe available to customers without requiring them to purchase the physical hardware. Located in security-enhanced, world-class IBM e-business Hosting Centers(TM) with around-the-clock monitoring and management, the powerhouse zSeries mainframe provides unmatched processing muscle to keeps mission-critical applications running around the clock.

As part of the Linux virtual services solution, IBM provides on-demand storage capacity that enables customers to buy only the storage they need. This allows customers to optimize their storage usage by eliminating separate, underutilized hard drives housed on physical servers or underutilized storage arrays. Linux virtual services leverages IBM expertise in managed storage to provide cost-effective, reliable storage on-demand.

Network capacity and complementary managed services are also available on demand to help optimize customer environments. These services leverage IBM's partnerships with leading telecommunications providers to provide multiple sources of on-demand network capacity.

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