GOVERNMENT

ARMONK, NY -- IBM defeated Sun Microsystems in worldwide UNIX server sales in the fourth quarter of 2001, catapulting from third place to first place, according to data published by industry analyst International Data Corporation (IDC). The IDC report is the latest evidence that IBM eServer UNIX systems provide customers with the most powerful, scalable and reliable platforms for the broad spectrum of commercial and technical computing. IBM's fourth quarter UNIX leadership is especially significant, as both IBM and Sun introduced new high-end UNIX servers in the second half of 2001, sparking industry speculation of a marketplace showdown. The IBM eServer p690, announced in October, is a game-changing enterprise-class UNIX system that offers industry-leading performance. The IBM eServer p690 is also substantially less expensive that than a similarly-configured Sun Fire 15K. The new IBM eServer was a major factor in IBM's fourth quarter success. IBM gained 2 points of UNIX revenue share in the quarter versus the year-ago period, while Sun's share plummeted 5.7 points during the same period, IDC data indicates. The full-year view shows an even more pronounced divergence in the trajectories of the two UNIX businesses. IBM's share of UNIX server revenue rose 3.9 points in 2001 versus the previous year, while Sun's share fell 4.7 points, IDC data indicates. "IBM's success stems from a commitment to open standards, breakthrough technologies and price/performance leadership," said Surjit Chana, vice president, marketing, IBM eServer pSeries. "While other companies may have taken their eye off the ball last year, we had the products that best solved customers' business challenges." In addition to its leadership in UNIX servers, IBM was also the leading player in overall worldwide server sales. The company led with 32.4 percent revenue share in the fourth quarter, while Sun held only 11.8 percent.