Report: IBM #1 In Global Server Revenue

ARMONK, NY -- (MARKET WIRE) -- Aug 24, 2005 -- Gartner, Inc. today reported that IBM is first in worldwide server revenue for the ninth consecutive quarter, with dramatic growth in UNIX® and blade server revenue.

According to Gartner, a leading provider of research and analysis about the global information technology industry, IBM increased its share in UNIX revenue, growing 5.5 points year-to-year, while Sun lost share year-to-year. In addition, IBM added more than seven points of share year-to-year based on server revenue in the blade market, with more than 42% of the revenue in the second quarter.

Gartner data shows IBM growing across key segments. Highlights from the report include(2):

--  IBM is number one in worldwide server revenue with 30% of the share,
    with total revenue up 4.6 percent year-to-year (YTY).
--  IBM increased its global UNIX-based server revenue share year-to-year
    for the fourth consecutive quarter ending 2Q05 -- gaining 5.5 points, and
    total revenue up 33% YTY.
--  IBM continued to lead in blade server revenue share for the fifth
    consecutive quarter ending 2Q05, gaining 7 points with more than 42% of the
    revenue and total revenue up 78% YTY.
--  IBM is number one in overall Linux-based server revenue worldwide in
    2Q05.
--  IBM's eServer iSeries system revenue was up 10% YTY.
    
About IBM

IBM is the leading server vendor in the world. For more information about IBM, visit www.ibm.com.

1. Based on Gartner's worldwide quarterly Server Tracker for 02Q05, issued on August 24, 2005

2. Growth comparisons done on a year-to-year basis.

IBM is a trademark of IBM Corporation in the United States and/or other countries. All other company/product names and service marks may be trademarks or registered trademarks of their respective companies. UNIX is a registered trademark in the United States and other countries licensed. Linux is a registered trademark of Linus Torvalds in the United States, other countries or both.

Media Contact:
John Crowe
IBM Corporation
512-286-3182

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