IBM Introduces New Low-Priced POWER5 Server Based on Linux

New IBM OpenPower System Delivers Superior Virtualization and Performance to Entry-Level Server Market

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ARMONK, NY - 24 Jan 2005: IBM today announced it will offer a new, low-priced IBM POWER5(TM) processor-based server running the Linux® operating system (OS). The introduction of the IBM eServer(TM) OpenPower(TM) 710 marks IBM's continued commitment to extend POWER5 performance for Linux environments to companies of all sizes.

The powerful new IBM eServer OpenPower 710 provides a Linux OS-based alternative to HP and Sun entry-level UNIX® and Linux systems, helping clients to attain greater business productivity and lower costs. Its introduction is significant news, as it provides smaller businesses greater opportunity to access high-performing systems and is ideal for companies in industries such as financial services, life sciences and government.

The IBM eServer OpenPower 710 is a reliable, one- to two-way rack-mount system that supports the Linux operating system as distributed by both Red Hat and SUSE LINUX. The system is tuned for Linux for optimal performance and utilizes high-end features of larger server systems such as IBM's proven 64-bit Power Architecture(TM) technology and optional mainframe-inspired virtualization and Micro-Partitioning(TM) capabilities unique to POWER5 systems. When compared to similar offerings, the OpenPower 710 beats HP and Sun in system performance including:

The result is a system that allows clients to support multiple workloads on fewer systems -- making the OpenPower 710 optimal for datacenter consolidation and enterprise-class scale-out growth. Software developers in organizations of any size can also leverage the OpenPower 710 as they develop and run applications on the Linux OS.

"With the addition of the OpenPower 710, IBM extends Linux on POWER(TM) even deeper into the entry-level market where demand is increasing for substantial functionality and benefits of the POWER5 architecture," said Brian Connors, vice president, Linux on POWER, IBM. "OpenPower is a revolutionary option for businesses, particularly in the financial, government and retail industries, who are looking for lower-priced, more powerful Linux OS-tuned alternatives to HP and Sun systems."

Solutions Grow on OpenPower -- Over 900 ISV Applications and Growing
Also announced are a series of industry-focused solutions optimized for the OpenPower platform, marking growing momentum around Linux on POWER from IBM. In only four months since the introduction of OpenPower systems, an additional 250 applications have been optimized for the OpenPower platform by Independent Software Vendors (ISVs) and Linux Developers -- bringing the total to over 900 certified applications. These applications are alongside thousands of additional open source applications -- extending into industries including financial services, retail, government and life sciences. New solutions introduced today include:

This level of support gives small and medium enterprise customers the capability to easily build, deploy and manage critical business and technical applications using Linux on POWER.

OpenPower Customer Success

TSYS Prepaid
New York-based TSYS Prepaid, a leading provider of prepaid card solutions that utilize the Visa, MasterCard, EFT and ATM networks, recently turned to IBM's OpenPower systems as a means to support its electronic, prepaid card solutions for companies in various markets ranging from corporate incentive to consumer promotion initiatives.

"The market for prepaid debit cards is experiencing significant growth as the shift continues away from paper-based payment processes such as cash, personal checks, coupons and gift certificates," said Tim Kuchlein, Vice President of Technology for TSYS Prepaid. "IBM's entry-level 64-bit OpenPower systems with Linux on POWER technology will offer our clients the system performance, scalability and precision they need to easily tune and optimize their applications to convert paper-based payment processes into more secure electronic records, in real-time and at an affordable price."

Khimetrics, Inc.
Customer Demand Solutions from Khimetrics, Inc. are designed to help leading global enterprises in retail, consumer packaged goods, and financial services drive increases in revenue, margin, and shareholder value. Khimetrics combines its deep understanding of these industries with software solutions to help customers understand, predict, and manage customer demand.

"With IBM's POWER5 processor-based servers at the heart of our IT infrastructure, our engineers have the kind of truly scalable platform necessary to build best-of-breed applications that analyze the cyclical demands of customers in the retail and financial services industries," said Todd Burnett, Director of IT Services, Khimetrics. "The OpenPower system provides our designers with a superior 64-bit architecture, but at a fraction of the cost by using an open source Linux platform. This type of cost savings will trickle down to our customers, allowing us to offer a more competitively priced product."

Myricom, the creator of Myrinet(TM), a high-performance, packet-communication and switching technology used to interconnect clusters of workstations, PCs, servers, or single-board computers, is working with IBM to port its technology onto IBM's OpenPower systems.

"The vast majority of our customers in the high-performance computing market rely on the openness and flexibility of Linux to drive their clustering projects," said Dr. Nan Boden, Executive Vice President of Myricom. "We're confident that the combined strength of POWER and Linux on IBM's new OpenPower systems will fill the need for many of our customers who are looking for an affordable, high-performance platform dedicated to open source computing."

A New Era for POWER
The new OpenPower 710 is an extension of the recently announced OpenPower server family and joins IBM's decorated family of 64-bit Linux on POWER offerings including new eServer i5, p5 and BladeCenter JS20 systems.

The Power Architecture is at the heart of products ranging from video gaming systems and blade servers to supercomputers. As one of the industry's leading high-performance customizable microprocessors, it has gained tremendous momentum within the past year, including the formulation of, an open standards community around chips and systems, which use Power Architecture technology.

Pricing and Availability
IBM plans to make the IBM eServer OpenPower 710 available on February 18, 2005 with 1.65 GHz POWER5 microprocessors. The system will be available in a 1- to 2-way rack with maximum memory of 32GB. The OpenPower 710 supports Novell SUSE LINUX Enterprise Server 9 (SLES 9), and Red Hat Enterprise Linux AS 3 (RHEL AS 3). The OpenPower 710 will have a starting price of $3,449 (excluding operating system) and includes a 1.65 GHz processor, one gigabyte (GB) memory, 73GB 10K rpm disk drive, DVD-ROM and three-year, next-business-day warranty.

The IBM eServer OpenPower Consolidation Express solution is also available for OpenPower 710 and 720 systems. This end-to-end solution provides a simplified, cost-effective building block to prepare companies for an on demand computing environment.