SAN DIEGO, CA -- JNI® Corporation (Nasdaq:JNIC), the first company to introduce 10 Gb InfiniBand(SM) HCA Modules, today announced an agreement with IBM Microelectronics Division (NYSE:IBM) covering the use of IBM InfiniBand chip technology in HCA and TCA products. Under the agreement, JNI will integrate IBM's InfiniBlue(TM) 4X host channel adapters (HCAs) into JNI's HCA modules and software. The intent is to develop a standards-based HCA module (add-in card) for PCI-X-based servers. JNI and IBM are investigating future opportunities to cooperate on the use of InfiniBlue hardware and software technology in InfiniBand-to-Fibre Channel connectivity products and server cluster software. JNI and IBM are also evaluating joint efforts for future InfiniBand-related developments as the market matures. ``JNI opens up its opportunities with OEMs using the IBM technology,'' said Steve Duplessie, founder and senior analyst, Enterprise Storage Group. ``In turn, IBM aligns itself with one of the leading companies driving InfiniBand deployment into today's server technology. It's great for both companies: JNI offers IBM time-to-market products while IBM offers JNI the kind of backing only Big Blue can provide.'' ``The ability to provide the power and benefits offered by the InfiniBand architecture at all implementation levels is essential to the successful deployment of the technology,'' said Ms. Scottie Ginn, vice president of IBM Microelectronics' Standard Products. ``By integrating IBM's 4X and 12X InfiniBlue silicon into the card-level product solutions offered by companies such as JNI, end-users are able to solve bandwidth constraints, management and infrastructure complexities, and reliability issues in their data center easily and cost-effectively.'' ``JNI and IBM want to drive the deployment of InfiniBand into the open data center,'' said Neal Waddington, president and CEO of JNI Corporation. ``We believe early adopters will embrace a solution that uses core technology from IBM. In addition, the two companies working together will help advance the overall market development for InfiniBand, paving the way for widespread InfiniBand deployment.'' JNI IBM-Based HCA Modules JNI's InfiniStar Host Channel Adapter (HCA) Modules are add-in cards that extend the I/O functions of a server outside its enclosure. The planned HCA Module featuring IBM's InfiniBlue technology will support both 1X (2.5 Gb) and 4X (10 Gb) data link speeds through a PCI-X slot. JNI HCA Modules will support multiple host operating systems, including Linux and Windows. The products will be available by the end of this year. One early application for InfiniBand HCA Modules is providing server clustering solutions. InfiniBand HCA Modules replace products that use proprietary software and protocols, and multiple adapters. The HCA Module enables simultaneous storage area network, communication and cluster server-to-server traffic. JNI's InfiniBand Strategy JNI first disclosed its InfiniBand strategic initiative on November 2001 when the company articulated its vision for InfiniBand and announced a new family of InfiniStar(TM) HCA Modules targeted for clustered server environments and extended I/O support. ``InfiniBand represents a very complementary expansion of JNI's core Fibre Channel business and will allow us to leverage our leadership position in Fibre Channel storage networks for the data center,'' Waddington said. ``Every major server and storage manufacturer we work with has an InfiniBand initiative.'' Most major server and storage OEMs that have announced public support for InfiniBand, including Brocade Communications, Compaq, Dell, EMC, Hewlett-Packard, Hitachi Data Systems, IBM, Intel, Microsoft, Network Appliance and Sun Microsystems. In March 2002, Salomon Smith Barney developed a detailed study of the InfiniBand market, estimating that this new market will grow to $3 billion by 2005. This would suggest a tremendous market for InfiniBand HCA modules and switches. In addition, this study, along with similar studies from IDC, indicate a phased roll-out of InfiniBand that shows it existing as a server-to-server interconnect technology connecting to today's Fibre Channel storage networks, as well as showing a ramp-up of InfiniBand deployment, indicating servers with native InfiniBand connections would reside next to an installed base of servers that can be upgraded to InfiniBand connectivity using HCA Modules. These trends highlight three areas of opportunity for JNI: Deploying HCA Modules as a way of connecting today's server designs into an InfiniBand environment; connecting InfiniBand servers to Fibre Channel storage networks with InfiniBand-to-Fibre Channel bridging products; and upgrading existing or legacy systems to InfiniBand as InfiniBand I/O servers, switches and networks are deployed. Enabling the ``Server Net'' JNI InfiniStar HCA Modules enable standard servers to reap the performance and scalability benefits of InfiniBand-enabled clustered servers. For example, in environments where high server density is required, a single InfiniBand HCA Module can replace multiple interface cards or adapter cards required to link the servers to storage, local area network, output and other I/O functions. JNI refers to this network as the ``Server Net,'' because the functional benefits are similar to the ``Client Net'' (LAN) and the ``Storage Net'' (SAN). Each of these networks has important elements in common: each offers scalability and flexibility independent of the other networks; each uses an open standard -- InfiniBand, Ethernet and Fibre Channel; and each is supported by multiple vendors. ``As Fibre Channel technology enabled the removal of storage from the server to create the Storage Net, InfiniBand has the ability to separate the server CPU from the I/O bus to create what is really a Server Net,'' Waddington said. ``The InfiniBand-based Server Net is really the third network in the enterprise, following the Ethernet-based Client Net in the early 1990s and Fibre Channel-based Storage Net in the last few years,'' Waddington said. ``Server Nets offer levels of density, scalability, low power usage and lower TCO (total cost of ownership) advantages desired in many data centers today, but can only be achieved with highly proprietary and expensive equipment. Our HCA Modules can significantly reduce the TCO in a high availability 24/7 data center using open standards embraced by the entire industry,'' Waddington said.