Kodak To Rely On IBM For 40,000 Notebook And Desktop PCs

Program Lowers Total PC Ownership Costs

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ROCHESTER, NY - 29 Jan 2002: Kodak and IBM today announced that with completion of the first phase of a program to replace 40,000 desktop and notebook PCs worldwide, Kodak is positioned to recognize measurable reductions in IT spending through a combination of programs focusing on the role of PCs and file/print servers in its overall global IT infrastructure.

Kodak's program is designed to lower total ownership costs through a combination of new software management and order fulfillment technologies. They include standardizing the software images used on each ThinkPad and NetVista PC, ordering PCs direct, consolidating departmental servers, a single point of contact service desk and using a simple new IBM utility that restores a user's applications and data from a hidden partition on the hard drive.

"We're focused on the total cost of our information technology solution," says Tony DiBitetto, Director, Global Desktop and Telecommunications Services, worldwide IT services at Kodak. " We're working to deploy solutions that enable employees to share the information they need with each other, on a worldwide basis, at the lowest possible cost. Saving $200 on the price of an individual PC is important, but it's nothing like the savings we get from resolving a significant percentage of support issues at the service desk, without having to send a technician on-site."

Kodak and IBM began replacing PCs for Kodak employees worldwide in 2000. When the program is completed in mid 2003, Kodak will have refreshed the PCs in almost 50 countries. Beyond replacing PCs, Kodak has worked with IBM to rethink the way ThinkPad and NetVista PCs work in the infrastructure -- the way they access information, the way they're supported and the way they're updated.

- Kodak orders PCs directly from IBM in 39 countries worldwide, and relies on a hybrid model to order PCs directly but obtain them through dealers in nine other countries. Kodak receives a customized electronic catalog from IBM daily with the most recent competitive pricing, configurations and specifications, and submits orders through an electronic fulfillment system. Because IBM strives to ship each PC within 10 days of order, Kodak avoids carrying inventory costs and can change its deployment schedule more quickly. In addition, Kodak and IBM are scheduled to begin use of a web-based electronic catalog in a pilot program in Canada and France later this year.

- The "software image" for each PC -- a combination of operating system, applications, language, hardware specifications, and drivers -- is prepared and certified by a team of Kodak and IBM software engineers. IBM Imaging Technology Centers in Raleigh, N.C.; Greenock, Scotland, and Yamato, Japan, then load the base software images on each notebook and desktop PC before shipping it to end-users. Industry analysts estimate that managing PC software images represents half of most corporations' total hardware support costs.

- Departmental file and print servers are being replaced by centralized IBM eServer xSeries servers in standardized configurations that enable several departments to share one server resource, which also allows servers, desktops and notebooks to be treated as an IT utility, rather than a custom, one-off service requiring specialized expertise and support.

- IBM Rapid Restore, a simple software program is available for download for IBM desktops and notebooks, relies on a restoration utility in a hidden partition of the hard drive to restore a PC to a known working condition, usually within 20-30 minutes. Technologies like "IBM Rapid Restore" can help Kodak resolve many problem calls at its help desk by telephone, helping reduce the number of in-person field service calls. This helped Kodak reduce the amount of resources needed to cover service calls by 40 percent.

Kodak and IBM continue to explore opportunities to further enhance Kodak's infrastructure, reduce cost, and enhance quality globally.

For more information, see www.kodak.com, or www.pc.ibm.com.

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