IBM and Novell Announce First Blade Chassis Subscription for Linux

- Novell SUSE Linux Subscription for BladeCenter Chassis Offers IBM Customers New Simplified Linux Licensing

ARMONK, N.Y., and WALTHAM, Mass. -- Oct. 12, 2005 -- IBM and Novell today announced a new single subscription option for the IBM BladeCenter chassis that will provide customers with increased flexibility and choice, making it easy to buy and administer subscriptions to Novell's SUSE(TM) Linux Enterprise Server based on their individual needs. This single subscription will cover all blades within the BladeCenter chassis, regardless of CPU type or quantity, and aims to help lower the cost and complexity of procuring and licensing Linux for blade server environments.

This new chassis subscription model will help customers maintain control over the cost of computing by potentially reducing subscription administration requirements and the need for separate subscriptions on each blade server. By creating a simple-to-administer and flexible environment, users will be able to configure, re-provision and expand on demand within an IBM BladeCenter chassis with up to 14 blade servers without having to purchase additional subscriptions to SUSE Linux Enterprise Server. Customers can mix-and-match any number of blade servers with Intel(R), AMD(R) and Power-based CPUs in a single chassis with this single subscription. This subscription model will help
customers quickly and efficiently implement scalable, multi-tier and heterogeneous Linux workloads.

"As a key business partner of both IBM and Novell, rs-unix is very pleased to see the leaders in Linux offer customers an easy and cost-effective way to subscribe to Linux on the IBM BladeCenter platform," said Jeff Medeiros, CEO of rs-unix. "Our primary goal is to provide solutions to solve our customers' business problems, and this combination will allow us to more easily achieve that goal."

Recent second quarter 2005 market share results show that IBM BladeCenter has been the leading blade server in the industry for eight successive quarters.* IBM was also number one in overall Linux-based server revenue worldwide in the second quarter of 2005.** Unlike competitive offerings which bundle multiple traditional server subscriptions and tie them to chassis orders, IBM's BladeCenter chassis subscription is a complete chassis subscription and will help further reduce the cost and complexity of implementing Linux-based solutions and workloads. Depending on the blade configuration, customers could see reductions in their subscription costs of up to $17,000.

"From the inception of IBM's BladeCenter offering, IBM has worked with industry partners to deliver the industry's most open, flexible blade server platform to meet the dynamic business needs of our customers," said Doug Balog, vice president and business line executive, IBM BladeCenter. "With this new BladeCenter chassis subscription, we are enabling customers to simply and flexibly manage their IT infrastructure at potentially reduced overall cost."

"Our work with IBM aligns with the current industry trend to simplify data centers and overall infrastructure management," said Ron Hovsepian,
Novell executive vice president and president, global field operations.
"Unlike competitive offerings which simply bundle existing server subscriptions, the new Novell(R) and IBM subscription model offers advantages for heterogeneous environments and virtualization needs, allowing customers to customize their data centers while potentially lowering the system's total cost of ownership."

IBM and Novell are also working together on the formation of,
a planned collaborative organization aimed at spurring solution development and innovation around IBM BladeCenter. Novell's SUSE Linux Enterprise Server is the first Linux to support all IBM hardware platforms, including the first on IBM POWER and IBM zSeries.

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