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IBM today previewed a new Netfinity server designed
specifically for the rapidly growing Internet Service
Provider (ISP) and Application Service Provider (ASP)
markets. The Netfinity 4000R, measures just 1.75 inches
(45mm) thick - the thinnest Intel-based server introduced by
a major systems vendor - and packs more than double the
number of processors in a standard rack environment as
competing systems.

Today IBM also announced the availability of the Netfinity
8500R, a powerful 8-way SMP Intel server ideal for large web
and application hosting environments. And last week the
RS/6000 Model B50 - a slim, ISP-ready Unix server from the
RS/6000 family - was launched. These rack-optimised servers
form the backbone of an aggressive push from IBM, the
e-business company, into the rapidly expanding ISP and ASP
markets.

"The market for Internet-based applications is expected to
fuel a demand for hardware, software and services in excess
of $15B by 2002 (1) " said Steve Menadue, Vice President
Netfinity Servers. "We're aggressively going after this
market - combining server technology, software testing
programmes and ready to run solutions to give ISPs the
broadest choice of hardware, software and services available
for the Windows NT, Linux and Unix operating system
environments."

Internet-hosted applications are mission-critical solutions,
and essential to any mission-critical solution is the
fundamental reliability of the server platform and strong
integration of the software base. Through its
industry-leading X-architecture innovations IBM Netfinity
servers deliver extremely high levels of reliability and
availability. For instance, the Netfinity 8500R is not only
streamlined for ISP rack environments, it also has
unique-but-essential high availability features like Active
PCI and LightPath diagnostics that no other Intel server
manufacturer can offer today. In addition, IBM's strategic
partnerships with key industry players like Microsoft,
Netscape and the major Linux suppliers mean that these
servers are optimised for the platforms that ISPs and ASPs
need to use.

"The Netfinity 4000R is an optimal server for deploying Red
Hat Linux", said Paul McNamara, General Manager of
Enterprise Marketing, Red Hat. "Red Hat Linux has been
pre-tested and tuned to take advantage of X-Architecture
features found in the Netfinity server, bringing even
greater levels of reliability and availability to
customers."

New Netfinity 4000R Server

The Netfinity 4000R server enables ISPs and ASPs to offer
their customers content-rich services, high volume
e-commerce applications, storage-intense Web hosting, and
network security. Without sacrificing performance or
capacity IBM was able to pack 2-way SMP Intel server
functionality into an amazingly small package - in fact the
smallest rack-mountable box possible, at only 1 rack unit
(1U) high and an industry-standard 24-inches deep. This
enables the placement of up to 42 2-way servers in a single
19-inch standard rack - a huge benefit for space-constrained
ISP server farms.

Key features of the Netfinity 4000R include:

Ideally sized 1.75"/45mm (1U) packaging providing maximum
computing power per square foot and optimum scalability;

Up two Intel 500 MHz (2) processors per unit - providing the
capability for 84 processors per industry standard rack;

Maximum 2GB memory per unit;

Supports up to 1.5 Terabytes of storage;

Supports Windows and Linux environments;

The Netfinity 4000R will be available in Europe, the Middle
East and Africa in Q1 2000. Full pricing and warranty
information will be announced at this time.

Solutions for Fastest Time to Revenue

IBM is validating popular Internet software on the Netfinity
4000R server. Together with key software vendors - including
Inktomi, Red Hat, Resonate, Real Networks, Sun/Netscape,
Lotus and Microsoft - validation assures ISPs that
programmes such as caching, load balancing, media streaming,
and other Web applications critical to their success are
supported and easily configured for their environment.

Key industry solution providers adding their support today
for the Netfinity 4000R include:

"Cisco and IBM are teaming up to provide customers, ISPs,
and ASPs with Internet Business Solutions. IBM's Netfinity
4000R server combined with Cisco's networking solutions will
allow ISPs and ASPs alike to provide customers with reliable
and secure services via a hosted applications model."

Eugene Lee, Vice President of Marketing, Cisco Systems'
Small/Medium line of business

"The Inktomi Traffic Server Network cache platform, running
on IBM's new Netfinity 4000R server, enables service
providers to build new services and intelligence into the
edge of their networks. The combined IBM-Inktomi solution
provides compelling performance, flexibility and new network
services to help ISPs manage explosive traffic growth and
generate new revenue streams."

Paul Gauthier, Chief Technology Officer, Inktomi

"Hosted Domino applications have the power to improve
customer relationships and streamline business processes
while minimizing internal IT investments. When combining the
Netfinity 4000R server with Lotus Domino, customers will
have access to a powerful and reliable combination of
hardware and software that will enable them to grow their
businesses."

Ken Bisconti, Senior Director, Worldwide Product Marketing
for Lotus Development Corporation

"The delivery of a variety services and applications is an
area of terrific opportunity for ISPs. IBM's use of
Microsoft Windows NT Server for the Netfinity 4000R server
provides a flexible and scaleable choice for ISPs who
require services to enable them to meet the increasing needs
of their customers."

Mark Chestnut, Director, Network Solutions Group, Microsoft

"RealNetworks produces the leading platform and tools for
streaming media that are optimized for the IBM Netfinity
4000R server. ISP's can now anticipate new levels of
performance and scalability with the RealServer running on
IBM's Netfinity 4000R server."

Pete Zaballos, Director of Media Systems, RealNetworks, Inc.

"We are pleased to be among the vendors chosen to provide
Netfinity 4000R solutions. Our experience in high-traffic
Internet environments, coupled with the outstanding
performance capabilities of the Netfinity server platform,
gives ISPs a perfectly tuned solution for the e-business
environment where up-time and service level control are
essential."

Ken Schroeder, President and CEO, Resonate

"IBM's Netfinity 4000R server combined with The Sun/Netscape
Alliance's iPlanet solutions offer significant new
opportunities for service providers to enhance their
infrastructure to meet the growing needs of the Net Economy.
The Net Economy has placed increased demands on service
providers and we are working closely with IBM to provide
solutions that enable them to cost effectively meet their
customers' mission critical requirements."

Mark Tolliver, General Manager, Sun/Netscape Alliance

Ref: 99/328

Editors notes

(1) Source: IDC

(2) MHz only measures microprocessor internal clock speed,
not application performance. Many factors affect application
performance.

IBM and Netfinity are registered trademarks of International
Business Machines Corp.

Intel and Pentium are registered trademarks and Xeon is a
trademark of Intel Corporation.

Windows is a registered trademark of Microsoft Corporation
in the United States and/or other countries.

Other company, product and service names may be the
trademarks or service marks of others.

About Netfinity

IBM Netfinity provides customers with the industry's most
reliable foundation for their networked businesses by
delivering power, scalability, control and service. The IBM
Netfinity product lines enable small, medium and large
companies to manage their networked business systems - from
file and print capabilities to the most advanced
applications - anytime and anywhere.

For more information about Netfinity, visit the IBM
Netfinity Home Page on the World Wide Web at
http://www.uk.pc.ibm.com/netfinity.html

Media Contact:

Tony John
Nefinity Brand Manager,
IBM PSG UK and Ireland
johnt@uk.ibm.com
Tel: 01256 343045

or

Mike O'Connell/Emma Thompson
On behalf of IBM
01753 790700
moconnel/ethompso@brodeuraplus.com

Customer Contact
0870 60 10 136

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