Infocrossing Hosts Linux Virtual Servers on the IBM Mainframe

Business Wire, June 28, 2001

Business Editors

LEONIA, N.J.--(BUSINESS WIRE)--June 28, 2001

First to Deliver Up To 90% Cost Savings

Infocrossing, Inc. (NASDAQ: IFOX), a premier provider of complex managed hosting services and infrastructure outsourcing solutions, today announced that it became among the first managed services providers to host Linux virtual servers on an IBM mainframe.

Company executives say they can offer cost savings of up to 90% to companies currently hosting their own servers. Infocrossing uses the VM operating system to manage up to 50,000 Linux servers on a single S/390 server, providing a dramatic reduction in operating costs because only one hardware platform needs to be operated and maintained regardless of the number of servers that are being run. In addition to the dramatic cost savings of running virtual Linux servers on a mainframe, additional processing cycles can be dynamically allocated to each server when needed, making it possible to handle spikes in demand without adding new servers and incurring unnecessary costs. "By consolidating workloads onto IBM eServer zSeries or s/390 servers running Linux, Web hosting companies such as Infocrossing can reduce costs and improve return on investment," said Joann Duguid, director, Linux on eServer zSeries, IBM. "With open standards based solutions running Linux IBM provides the most cost-effective way to run an e-business."

"The combination of the IBM mainframe and the Linux operating system is a natural," according to Tom Laudati, Senior Vice President for Enterprise Engineering at Infocrossing. "The mainframe is an extremely stable and secure backbone for data intensive, high-power computing that has evolved through decades of engineering. Linux on the other hand, is a powerful open source operating system that is already running a substantial portion of today's Web servers. The key advantage of combining the two is that a single mainframe can service tens of thousands of virtual Web servers. Instead of having to maintain thousands of different servers each with their own power supply, Ethernet card, and storage systems, we only have to take care of a single box."

Chuck Auster, CEO of Infocrossing, said: "The efficiencies of Linux on the mainframe make it possible for Infocrossing to offer savings as high as 90% on the cost of web hosting. Substantial cost savings can be offered relative to other traditional hosting providers that still use the single box/single Web server paradigm." Mr. Laudati pointed out that nearly two-thirds of all Web sites in operation today run Apache web server software, which runs under the Linux operating system, and many other sites could easily be ported to Linux as well. He also noted that the S/390 environment offers substantially greater availability than traditional web server platforms. The mean time between failure is about 30 years, which means only about 5 minutes of downtime per year.

Mr. Laudati continued, "Migrating to a Linux server is a simple process. Our customer simply takes an image of their disk, transmits it to our hosting center and we drop it onto the S/390 and point their IP address here. They can move servers one at a time without any impact on their users or the risk of having to transport a company's entire system. To upgrade the system, rather than adding a CPU or configuring another box, we simply allocate more resources. We can host client/server applications by running a dedicated line between the customer's facility and our own."

One of the first customers to move their servers to Infocrossing's virtual Linux environment is ACTS Corporation, Kingsland, Texas, an application service provider that focuses on web-based testing and evaluation. "The value proposition offered by Infocrossing combining Linux with the proven strengths of the mainframe environment fits well with our business model," states Bill Carico, President of ACTS. "Our software clearly stands out in the areas of recovery, security, and ease-of-use regardless of what server it runs on, but running on the mainframe strengthens our overall offering in terms of scalability, high-availability, and affordability."

About Infocrossing, Inc. (http://www.infocrossing.com)

Infocrossing, Inc. (IFOX) is a premier provider of complex managed IT/IP hosting services and infrastructure outsourcing solutions to meet the growing Web requirements and integration needs of Global 2000 companies. With more than 17 years of experience managing large, mission-critical IT systems, Infocrossing leads the industry in providing a full suite of automated integrated managed services that assure the optimal performance, security, reliability and scalability of customers' computing environments, irrespective of where the systems components are located. Infocrossing maintains strategic alliances with leading technology providers, including Cisco Systems, Sun Microsystems, EMC, Intel, IBM-Tivoli, IT Masters and American Power Conversion.

This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. As such, final results could differ from estimates or expectations due to risks and uncertainties, including but not limited to: incomplete or preliminary information; changes in government regulations and policies; continued acceptance of the Company's products and services in the marketplace; competitive factors; technological changes; the Company's dependence upon third-party suppliers; intellectual property rights; and other risks. For any of these factors, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended.