IBM Unleashes eServer i5 Systems with POWER5

IBM eServer i5 Offers New Economic Model for Small and Medium Sized Businesses; with Embedded Virtualization Engine Technology it Runs Multiple Operating Systems

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May 3, 2004, Armonk - 03 May 2004: , . . . IBM today introduced eServer i5, the first systems to be powered by IBM's much anticipated POWER5 microprocessors. Running i5/OS, the next generation of OS/400, the new eServer i5 systems provide small and medium-sized businesses with unprecedented power, flexibility and cost benefits.

Powered by POWER5 microprocessors, the most powerful 64-bit chips ever built by IBM, the IBM eServer i5 can integrate and run multiple operating systems simultaneously including i5/OS, Windows, Linux and AIX 5L. The eServer i5 has the ability to run AIX 5L alongside i5/OS to consolidate and manage UNIX solutions. IBM's new Virtualization Engine technology embedded in the new eServer i5 systems extend and enhance iSeries virtualization capabilities such as logical partioning (LPAR).

Businesses using the eServer i5 can average up to 40 percent improvement in system price/performance over previous iSeries systems with comparable prices to UNIX-based systems for memory, disk and server components.

"With the introduction of the eServer i5 server, powered by POWER5 microprocessors, IBM brings breakthrough technology and a new economic model for small and medium- sized businesses," said Al Zollar, general manager, eServer iSeries, IBM. "The eServer i5 system represents a clear commitment to helping our customers prosper in the new on demand world."

The new eServer i5 systems are part of a $500 million program that is delivering unprecedented computing capability for small and medium-sized businesses.

Performance Fueled by POWER5, i5/OS and the IBM Virtualization Engine:

The IBM Virtualization Engine is a set of technologies and services that help customers simplify and optimize their IT infrastructure and vastly improve the economics and operations of under-used IT assets. The IBM Virtualization Engine extends the eServer i5 server's ability to run multiple operating systems simultaneously. New support for AIX 5L now enables businesses to integrate UNIX solutions onto the eServer i5 alongside their i5/OS applications. Businesses can further simplify their IT environment on the eServer i5 server with the new support for running Linux on Intel processor-based Integrated xSeries server. Customers can reduce infrastructure server costs by managing all of their Linux and Windows servers together with integrated storage, security and backup.

Unprecedented Performance Value for Small and Medium-sized Business
The IBM eServer i5 520 Express Edition is a qualified Express solution, offered to small and medium-sized businesses through IBM Business Partners. The eServer i5 520 Express Edition is priced at $11,500 for a richly configured system (Manufacturer's Suggested List Price).

The Fashion Institute of Design Merchandising (FIDM) -- a private college with an enrollment of 5,000 full-time students and campuses in Los Angeles, San Francisco, San Diego and Orange County, California currently depends on IBM eServer iSeries systems to run its core business applications (student database, financials, intranet, Notes email), and its various websites (FIDM student Portal, fidm.com, alumni website and various other public sites including the FIDM museum.) Other applications currently being developed include a job search engine and online stores, such as a museum shop.

"FIDM is growing rapidly and we are keenly interested in the new line of eServer i5 systems with POWER5 and the added capabilities it offers. We expect it will meet and exceed the demands of our dynamic operating environment and rapid growth while giving us the most innovative hardware and software solutions available," said Roxanne Reynolds-Lair, CIO, Fashion Institute of Design Merchandising.

Enterprise Solutions and the eServer i5
The eServer i5 570 system introduces unprecedented on demand capabilities for mid-sized enterprises. It is equipped with Reserve Capacity on Demand, On/Off Capacity on Demand and Memory Capacity on Demand. The new Reserve Capacity On Demand enables customers to purchase a 'reserve tank' of processing power that is automatically enabled by the system if their server needs more capacity. With Capacity On Demand, customers pay only for what they activate with the ability to turn POWER5 processors or memory on and off as business needs change.

Leading software vendors around the world today announced support for the new eServer i5 systems from IBM.

"SAP NetWeaver is the open integration and application platform that aligns people, information and processes," said Stephan Rossius, senior vice president, Global Partner Management, SAP AG. "With the new i5/OS V5R3 and IBM eServer i5 POWER5 servers, IBM delivers a platform that provides the performance, the advanced technology and the flexibility our customers need. The combination of SAP NetWeaver and IBM eServer i5 will enable our customers to create a dynamic, affordable infrastructure that can leverage existing investments and adjust rapidly in the face of constant change."

Product pricing and availability
The IBM eServer i5 will be available on June 11, 2004. The IBM eServer i5 520 is available starting at $9,995. The IBM eServer i5 570 is available starting at $85,200. Qualified customers can get IBM financing with rates as low as 3 percent.