The document summarizes the reality of IBM's System i platform, contrasting it with common myths. It describes the System i as having industry-leading technology, the lowest total cost of ownership, and continuing investment from IBM. It also provides statistics showing widespread use of the System i in Fortune 100 and 500 companies as well as the healthcare industry.

1. System i- The myths Old technology Proprietary Expensive Nothing but Green Screens Not strategic to IBM Slowly fading away All the System i people are at least 50 years old

2. System i - The Reality Industry Leading Technology The most open system on the planet Provides the lowest total cost of ownership of any server Runs everything from green screen and ERP applications to SOA IBM continues to invest heavily on System i platform Adding new customers and ISVs every year Industry leading customer and Business Partner satisfaction Not all of us are over 50…..

3. System i - The Reality Over 245,000 customers currently use more than 500,000 System i5, iSeries or AS/400 systems in over 100 countries world wide 99% of Fortune 100 companies utilize System i5, iSeries or AS/400 servers 94% of Fortune 500 companies use System i5, iSeries or AS/400 servers 7 out of 10 IBM customers have a System i5, iSeries or AS/400 server Over 13,000 System i5, iSeries or AS/400 systems in the healthcare industry

4. Server Cost of Ownership - Over 3-Years System i is 37.8% less than Dell 39.7% less than HP 55.3% less than Sun Why? Availability System performance Reduction in complexity Increase focus of IT resources on business demands Source: ITG Status Report, June 2005 Cost/Benefit Case for IBM eServer i5 Servers: JD Edwards EnterpriseOne Solutions

5. Integration yields simplicity System i: Multiple workloads, one server PC Servers: Multiple workloads, multiple servers More… Staff Licenses Complexity Money Less… Manageable Efficient Flexible ROI More efficient use of people and IT resources More manageable and responsive to change Faster deployment and ROI

6. Integration and simplicity for Web applications on System i PC Servers: Expanding workloads, multiple servers System i: Expanding workloads, one server WCS.WSE Node HTTP Server LDAP Server App Server DB2 Server WCS/WSE Node App Server HTTP Server LDAP Server DB2 Server Other Business Apps

7. Think Virtualization & IT Optimization i5OS ERP Local Applications Virtual I/O and Devices Virtual Ethernet Dynamic LPAR Capacity Upgrade on Demand Enterprise Workload Mgr, Director Multiplatform, GRID Tool Box One backup / recovery strategy One operations staff & mgmt interface One development staff and toolset One high availability solution DB2 UDB Linux WebSphere Application Server Simple File & Print i5OS Portal Server Express (+WAS) Linux Firewall Apache HTTP Server Lotus Sametime Notes Quickplace NSF Windows Personal Productivty Applications SQL Server AIX5L WebSphere Business Integration Oracle POWER5 Hypervisor POWER5 Standard Intel

8. Questions?

9. Trademarks and Disclaimers Presenters: The instructions in blue on this chart need your attention. Delete these instructions prior to finalizing the chart. 8 IBM Corporation 1994-2006. All rights reserved. References in this document to IBM products or services do not imply that IBM intends to make them available in every country. The following terms are trademarks of International Business Machines Corporation in the United States, other countries, or both: Rational is a trademark of International Business Machines Corporation and Rational Software Corporation in the United States, other countries, or both. Intel, Intel Logo, Intel Inside, Intel Inside logo, Intel Centrino, Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. Linux is a trademark of Linus Torvalds in the United States, other countries, or both. Microsoft, Windows, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries, or both. UNIX is a registered trademark of The Open Group in the United States and other countries. Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries, or both. Other company, product or service names may be trademarks or service marks of others. Information is provided "AS IS" without warranty of any kind. All customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer. Information concerning non-IBM products was obtained from a supplier of these products, published announcement material, or other publicly available sources and does not constitute an endorsement of such products by IBM. Sources for non-IBM list prices and performance numbers are taken from publicly available information, including vendor announcements and vendor worldwide homepages. IBM has not tested these products and cannot confirm the accuracy of performance, capability, or any other claims related to non-IBM products. Questions on the capability of non-IBM products should be addressed to the supplier of those products. All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. Contact your local IBM office or IBM authorized reseller for the full text of the specific Statement of Direction. Some information addresses anticipated future capabilities. Such information is not intended as a definitive statement of a commitment to specific levels of performance, function or delivery schedules with respect to any future products. Such commitments are only made in IBM product announcements. The information is presented here to communicate IBM's current investment and development activities as a good faith effort to help with our customers' future planning. Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve throughput or performance improvements equivalent to the ratios stated here. Photographs shown are of engineering prototypes. Changes may be incorporated in production models. Presenters: The instructions in blue on this chart need your attention. Delete these instructions prior to finalizing the chart. WebSphere Workplace iSeries DB2 System i IBM (logo) eServer OS/400 IBM AS/400e i5/OS e-business on demand AS/400