IBM Transforms Intel Servers With Its New Modular Architecture

Three Years in the Making, IBM eServer Breaks Price and Performance Barriers in the Data Center Environment

Armonk, NY - 13 Mar 2002 - IBM today announced a powerful eServer* system, breaking price and performance barriers that until now have generally kept large Intel®-processor-based servers out of the mainstream of corporate data center computing. The IBM eServer offers a "building-block"-style, highly reliable architecture that allows customers to pay for computing power incrementally as they need it, and is designed to support up to 16 processors and 64 GB of memory.(1)

The new IBM system, called the IBM eServer xSeries™ 440 with Enterprise X-Architecture™ technology, caps a three-year development effort to build an exceptionally powerful Intel-based machine, using industry standard technologies, that is designed to handle the core applications that power e-businesses. The x440 performs smoothly with the Microsoft® Windows® 2000 Datacenter Server product to offer our customers high reliability and scalability.

Industry leading flexibility for e-business
The IBM eServer x440 is aimed at e-businesses where it provides a platform for both server consolidation and large, single system applications. The x440 can be used as a single big server to run a large database for business intelligence, or to consolidate many small "virtual servers" -- such as multiple e-mail servers -- under one roof to reduce costs. The eServer x440 supports the Microsoft Windows® operating system within a single SMP configuration, and also is designed to support up to four physical partitions or up to 64 virtual partitions. Initial companies that have received the IBM eServer x440 include Gibson Dunn & Crutcher LLP, and Honeywell.

"At Morgan Stanley, we have been very interested in leveraging the commodity of Intel-based servers to support some of our application and infrastructure workload," said Richard Anfang, Managing Director of Morgan Stanley. "Working very closely with the IBM support team, we are hoping to utilize the power, reliability and scalability of the IBM eServer x440 system that are the minimum requirements for these distributed applications."

Powered by IBM's Enterprise X-Architecture technology, the x440 server is designed to scale to 16 Intel IA-32 Xeon™ processors MP -- twice the number of processors in an 8U system than the nearest competitor with a 7U system, and four times the processors of most other shipped Intel Xeon™-based systems.

"Three years ago, IBM set out to reinvent the high-end of Intel servers. Today we are delivering a groundbreaking product that addresses long held customer requirements in this Intel server segment," said William Zeitler, senior vice president and group executive, IBM Server Group. "Technology and mainframe qualities are very important at the high-end. IBM has an important advantage over vendors who assemble off-the-shelf components. They will be challenged to provide the scale and reliability that customers demand in this part of their e-business infrastructure."

Breaks the Price Barrier
IBM plans to offer customers a system designed to support a 16-way Intel-based server capability at a fraction of the cost of a Unisys 16-way machine today. Priced at just over $100,000, this IBM system with 32 GBs SDRAM, expected to be available in July 2002, would cost about 78 percent less than an Unisys 16-way server, based on current Unisys' prices as reported by Competitive Profiles. (2) Configured as an 8-way box with 16 GBs SDRAM, the IBM x440 costs about 47 percent less than a similarly configured Compaq 8-way system, based on current Compaq prices.(3) Customers can also purchase a two-way IBM eServer x440 for as low as $18,500 with one 36 GB hard drive included.

Benchmark Leader
IBM has proved its leadership in high end Intel servers by delivering superior results on a wide-range of industry standard benchmarks: