Report Says IBM Passes Sun in Midrange Unix Server Market

Business Wire, June 23, 2000

Business Editors/High Tech Writers

SOMERS, N.Y.--(BUSINESS WIRE)--June 23, 2000

IBM UNIX Midrange Growth Exceeds Sun's

IBM announced today that it has passed Sun Microsystems in midrange UNIX server market segment share, significantly outpacing the year-to-year growth rate of UNIX rival Sun, according to a report just released by International Data Corporation (IDC).

IBM's growth was fueled by the insertion of performance-enhancing copper microprocessors into its RS/6000 UNIX server line.

IDC's Q1CY00 server market report shows IBM midrange UNIX market share at 24.6 percent compared with 21.4 percent for Sun Microsystems. IBM share of the midrange UNIX segment grew 50 percent year-to-year from 16.4 percent to 24.6 percent. Sun Microsystems UNIX midrange market share grew 2 percent from 21 percent to 21.4 percent. IDC defines midrange servers as systems costing between $100,000 and $1 million.

"IBM has introduced new technology and changed the rules for performance in UNIX servers. The latest IDC report is a clear indication that customers are responding," said Rod Adkins, general manager, IBM Web Servers. "The presence of copper microprocessors throughout the RS/6000 product line enables us to provide UNIX customers with unparalleled performance, scalability and reliability at a price far below comparable offerings from Sun Microsystems."

The IDC Q1CY00 report also underscores the immense popularity of the RS/6000 S80, the world's most powerful Web server. With 982 new S80's sold in 1Q00 versus 328 new Sun E10000's, IDC sales figures show the S80 continues to outsell Sun's flagship server by a three-to-one margin. When the Q1CY00 numbers are added to the S80's already record-setting volumes, they reveal that in the six months following its introduction, IBM sold almost as many S80's as Sun has sold E10000's in that product's three year history(a).

Thousands of companies ranging from Internet innovator Network Solutions to market leader Enterprise Rent-A-Car are turning to ultra-powerful RS/6000 servers from IBM to meet their most demanding, mission-critical e-business needs. Powered by IBM's breakthrough copper microprocessor technology, RS/6000 servers run AIX, IBM's award-winning UNIX operating system and are ideal for a wide-range of mission-critical applications, including enterprise resource planning (ERP), Web serving, business intelligence, customer relationship management and supply chain planning.

Pioneered by IBM researchers, copper microprocessor technology adds immense value. Smaller, denser, faster and cooler than their aluminum counterparts, copper chips are also more reliable and less expensive to manufacture. IBM RS/6000 servers are the only UNIX servers in the industry powered by copper.

Last month, IBM expanded customer's UNIX options even further, by adding rack and stack and deskside midrange servers to its UNIX lineup. Offering the same copper-fueled performance as the popular high-end S80, the new RS/6000 M80, H80 and F80 shatter Web and e-business speed records, outperforming competing systems from Sun Microsystems at a lower entry list price(b).

About IBM RS/6000

More than 1,000,000 IBM RS/6000 systems have been shipped to over 150,000 commercial and technical customers around the world. The RS/6000 family of computers feature IBM RISC-based microprocessors and run AIX, IBM's UNIX operating system. RS/6000 delivers the industry's most complete UNIX offerings by combining applications with hardware, software, service and support -- a combination that yields new levels of high availability, scalability, system management, performance, and Deep Computing capabilities.

Additional information: www.ibm.com/servers or www.rs6000.ibm.com

*IDC Quarterly Server Tracking Report through 1Q00.

(a) - Cumulative IDC data: 4Q99 and 1Q00. 1712 IBM RS/6000 S80's sold.

Cumulative IDC data: 1Q97 thru 1Q00 2080 Sun E10000's sold.

(b) - For performance benchmark information on IBM's new UNIX midrange servers see: http://www.rs6000.ibm.com/resource/features/2000/Feb/s80.html

IBM, RS/6000, SP and AIX are registered trademarks or trademarks of the IBM Corporation in the United States, other countries, or both. UNIX is a registered trademark in the United States and other countries, licensed exclusively through X/Open Company, Limited.