PeopleSoft and IBM Launch New Global SMB Channel Initiative

Alliance Enhanced to Expand Sales Channel, Develop Industry-Tailored Solutions -- Collaborate on Linux

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LAS VEGAS - 18 May 2004: In a move to dramatically expand PeopleSoft's reach in the small and mid-size business (SMB) market worldwide, PeopleSoft and IBM today announced plans to expand their global alliance by enabling IBM's industry-leading SMB reseller channel to offer PeopleSoft® applications. PeopleSoft and IBM will deliver jointly developed, industry-specific hardware and software solutions, and will make specific solution bundles available to resellers. The companies also intend to collaborate on a new Linux program that will extend the benefits of these SMB solutions to the open source operating environment.

"This is a perfect example of the strength of IBM's business partner ecosystem," said Michael Borman, general manager, IBM Global Business Partners. "PeopleSoft can grow its market reach through IBM's channel of skilled solution providers who, in turn, can add applications from a leading enterprise applications company like PeopleSoft to their portfolio of SMB customer solutions."

Expanded Reseller Program
The new initiative is expected to add hundreds of IBM resellers to PeopleSoft's channel efforts. The expanded channel relationship will deliver jointly developed, pre-integrated hardware, software and services offerings through regional solution providers. Additional elements will include joint cooperative marketing to drive application software leads to the channel, and a joint advertising campaign to position and promote channel partners and the combined PeopleSoft and IBM solutions in local markets. The two companies also plan to leverage IBM's Small and Medium Business Advantage program to provide sales incentives, marketing tools and resources, training, and demonstration capabilities to the SMB channel partners.

Industry-Tailored Solutions
PeopleSoft and IBM also announced a unique offering for Tier 2 and Tier 3 automotive suppliers that will be delivered through the new channel relationship. This announcement builds on the company's Life Sciences and World Express initiatives announced earlier this year. The new IBM Automotive Solution offers PeopleSoft EnterpriseOne applications running on the IBM eServer xSeries technology, along with pre-integrated IBM middleware and industry-specific best practices from IBM consulting. The new solution will enable automotive companies to become demand driven. In the past, manufacturers have had to choose between being customer focused or operationally efficient. Demand-Driven Manufacturing is the ability to deliver any product, in any configuration, at any quantity to meet customer demand at significantly lower costs to the manufacturer, driving the highest levels of profitability. PeopleSoft is the only enterprise applications company to deliver a complete demand-driven manufacturing solution -- from customer demand to supply chain planning to manufacturing planning and production to in-bound supply -- all operating in real-time. With its extended IBM alliance, these capabilities are now within the reach of small and mid-sized businesses around the world.

"As an IBM solution provider, we see great value-add and business benefits in this alliance with PeopleSoft," said Evan Walters, president and CEO of Innovative Information Solutions. "Our customers are looking for end-to-end solutions that solve industry-specific problems and deliver results quickly, all with the minimum investment, maximum scalability and high performance they require. PeopleSoft and IBM are clearly leaders in enabling SMB organizations to take their business to the next level."

Industry-Leading Price Performance
The strength of this alliance is supported by the dramatic price performance improvements PeopleSoft applications have achieved running on the new IBM eServer i5 series.

Cooperative Linux Development and Marketing
Building on the tremendous success of the Technology Foundation solution, and the recently announced availability of EnterpriseOne on Linux, IBM and PeopleSoft have further extended their commitment to customer choice by conducting comprehensive testing for the Linux open source environment. IBM and PeopleSoft will conduct a series of enhanced performance characteristic tests across a variety of Linux server configurations, for the IBM eServer xSeries, providing customers with the information they need to guide their Linux application strategies. In addition, IBM and PeopleSoft plan to launch a series of joint promotions and incentives highlighting EnterpriseOne, DB2, Websphere and IBM eServer xSeries on Linux, beginning with a joint marketing initiative and concentrating initially on Asia Pacific and Europe.

"Extending our partnership with IBM enables us to aggressively target the worldwide SMB market, and meet the global demand for low-cost, high-performance enterprise application software," said Les Wyatt, group vice president and general manager, PeopleSoft EnterpriseOne. "As mid-market leaders in ERP software and infrastructure, PeopleSoft and IBM are working together to deliver unparalleled value, ease of use, and flexibility for our customers."

"With over two decades of serving the mid-market, PeopleSoft is the ideal partner for IBM's mission of helping small and medium businesses innovate and thrive," said Marc Lautenbach, general manager of Global Small and Medium Business at IBM. "The six thousand customers we already share are only the first to benefit from IBM's extensive experience in integrating PeopleSoft systems, and the commitment of both companies to open standards, flexibility, and value. With these new initiatives, both PeopleSoft and IBM are better-positioned to help our customers succeed in the on-demand world."

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