Report: IBM # 1 in Worldwide Internet Infrastructure Services Marketplace

IBM Market Share Continues to Rise According to Tier 1 Research

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ARMONK, NY - 12 Nov 2004: For the second year in a row, IBM is ranked as the leading Internet Infrastructure Services provider in the world, according to a new report on the marketplace published by Tier 1 Research, a leading technology research firm.

In the Tier 1 Research study, published as: "Internet Infrastructure Services 2004 Mid-Year Market Size/Share Review," IBM's overall share of the global Web hosting marketplace continues to rise and is expected to reach 20 percent in 2004, which would be up from 17.9 percent in 2003. According to the report, IBM's revenue of the global Web hosting market rose to $470 million in the second quarter of 2004, a 12.1 percent increase quarter-over-quarter and 31 percent increase year-over-year. Tier 1 Research shows IBM with a commanding share of the marketplace -- triple that of the next closest competitor.

Tier 1 Research defines the overall Internet Infrastructure Services industry as being comprised of three primary segments: collocation hosting, dedicated hosting and utility computing services.

"IBM remains the worldwide leader and is seen reaching a 20 percent share in 2004," said Andrew Schroepfer, President of Tier 1 Research.

The Internet Infrastructure Services industry revenue rose 10.4 percent in 2Q04 to $2.27 billion, marking the third consecutive quarter of double digit year-over-year growth and bringing first half Internet Infrastructure Services industry revenues to $4.46 billion. Tier 1 Research estimates that the Internet Infrastructure Services market will top $10 billion for the first time in 2005 and dynamic utility computing services will top $1 billion in 2007, which saw revenues of $260 million in 2003.

"The latest figures from Tier 1 Research demonstrate IBM's continued commitment to provide customers with world class services and clearly indicate that IBM is winning in the marketplace," said Mark Morin, general manager, IBM Global Services. "IBM taps resources from across the company -- including consulting expertise and research prowess -- to provide customers of all sizes with innovative solutions to help them transform into on demand businesses."

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