1. IBM System i © 2006 IBM Corporation IBM System i 520 Collaboration Edition Revised 5/8/06 Michael Rousseaux WW System i Offering Manager Collaboration Technologies

2. IBM System i © 2006 IBM Corporation 2 IBM System i 520 Collaboration Edition  A powerful, flexible and cost effective alternative to running Collaboration applications on Windows servers  Deploy Lotus Domino, IBM Workplace or WebSphere Portal solutions with the flexibility and security of i5/OS  Specially-configured 1-way 520 Collaboration Edition with the minimum memory and disk needed for performance to run collaboration applications –1-way POWER5+ 1.9GHz with L3 cache –8200 MCU (Mail & Calendar Users Benchmark) –One i5/OS License –4-32GB Memory –4-278 Disk Drives, 35GB or more per disk –Select either RAID or mirroring disk protection  Customers Qualify with select WPLC (Workplace Portal Lotus Collaboration) Software  Announcement 05/09/2006, General Availability and Configurator Support 06/13/2006  IBM SWG sponsored “Move to Lotus Notes/Domino” Business Partner promotion for System i announced 5/9 Revised 5/8/06

3. IBM System i © 2006 IBM Corporation 3 Price comparison: 520 Standard Edition sample hardware configuration 520 Collaboration Edition sample hardware configuration Savings USA List Price* $45,397$30,197$15,200 520 sample configuration prices include:  1-Way Standard Edition or Collaboration Edition  4GB memory (four 1GB features)  Four 35GB disk drives  40MB write cache for embedded disk controller (#5727)  DVD ROM  VXA-320 tape drive  Serial-to-UPS conversion cable  i5/OS Operating System 520 sample configuration prices include:  1-Way Standard Edition or Collaboration Edition  4GB memory (four 1GB features)  Four 35GB disk drives  40MB write cache for embedded disk controller (#5727)  DVD ROM  VXA-320 tape drive  Serial-to-UPS conversion cable  i5/OS Operating System 33% Savings * Price will vary by country and is subject to change Revised 5/8/06

4. IBM System i © 2006 IBM Corporation 4 520 Collaboration Edition Qualification Requirements 11 Ways to qualify 1= Lotus CEO Lotus Communications - 70 Licenses 2= Lotus Domino Collaboration Express - 125 Licenses 3= Lotus Sametime - 350 User Licensee 4= Lotus QuickPlace - 350 User Licenses 5= IBM WebSphere Portal Express – 10 x 20 User Packs 6= IBM Lotus Document Manager – 160 User Licenses 7= IBM Workplace Services Express – 7 x 20 User Packs 8= IBM Software Solution on Demand Workplace - 40 User licenses 9= IBM WebSphere Portal Enable – 1 Processor Based License 10= Workplace Collaboration Services – 1 Processor Based License 11= Sametime Extranet – 1 Processor Based License Customers can qualify for the Collaboration Edition by 1. Purchasing select new IBM Collaboration software licenses (see table, below) 2. Transferring existing IBM Collaboration software licenses to the new Collaboration Edition Revised 5/8/06

5. IBM System i © 2006 IBM Corporation 5 System i and WPLC offer a very secure and reliable way to manage your business communications.... Here is what our customers say …. "For us, the big advantage of iSeries and Domino is the availability of the system. It is extremely stable and requires relatively little management, so the cost of ownership is low." Patrick Baucy, Director of Administration and IT, DAS “The stability and security of Notes is one of the key features…that makes it a fundamental part of our business strategy….Continuity is the key to my business. I can’t continue to retrain my people on a new paradigm every four years because my software development company decided to change…. Lotus is stable.” Ray Causey, Senior Manager, Kaiser Permanente “The stability and security of Notes is one of the key features…that makes it a fundamental part of our business strategy….Continuity is the key to my business. I can’t continue to retrain my people on a new paradigm every four years because my software development company decided to change…. Lotus is stable.” Ray Causey, Senior Manager, Kaiser Permanente “We love the virus free environment, the 99.997% uptime, and the fact that we have no security breaches.” Barry Winnick, attorney and director of technology, Tyler, Cooper and Alcorn “We love the virus free environment, the 99.997% uptime, and the fact that we have no security breaches.” Barry Winnick, attorney and director of technology, Tyler, Cooper and Alcorn

6. IBM System i © 2006 IBM Corporation 6 System i and WPLC offer a very secure and reliable way to manage your business communications.... Benefits to selling WPLC software on System i:  Simplicity: System i Wizards can turn days of implementation into minutes – faster time to benefit  Integration: Your software sale doesn’t get stalled by their infrastructure decisions because everything runs on one platform.  Scalability: Many customers have capacity available to run WPLC – no hardware purchase required  Reliability: legendary; “it just sits in the corner and runs” What is CTRL- ALT-DEL.. We don’t have a clue what that is !!!!  Flexibility: Can improve application availability and manageability by running multiple versions, multiple products, multiple instances simultaneously  Loyalty: System i customers love their systems and have consistently the highest satisfaction ratings in the industry Benefits to selling WPLC software on System i:  Simplicity: System i Wizards can turn days of implementation into minutes – faster time to benefit  Integration: Your software sale doesn’t get stalled by their infrastructure decisions because everything runs on one platform.  Scalability: Many customers have capacity available to run WPLC – no hardware purchase required  Reliability: legendary; “it just sits in the corner and runs” What is CTRL- ALT-DEL.. We don’t have a clue what that is !!!!  Flexibility: Can improve application availability and manageability by running multiple versions, multiple products, multiple instances simultaneously  Loyalty: System i customers love their systems and have consistently the highest satisfaction ratings in the industry Benefits to customers of running WPLC software on System i:  Simplicity: IT Staff can focus on business rather than technology issues because the System i requires less of their time to maintain.  Faster ROI: System i Wizards turn days of implementation into minutes – faster time to benefit  Integration: Collaboration applications typically run faster and work better on System i because of its integration with software  Scalability: Up to 350% more users on one system using the same application than Wintel based on IBM benchmarks. Fewer servers to maintain means more staff time for business innovation.  Reliability: legendary; “it just sits in the corner and runs” “Ctrl-Alt-Delete” We don’t have a clue what that is with System i  Flexibility: Should improve application availability and manageability by running multiple versions, multiple products, multiple instances simultaneously  Satisfaction: Customers love their System i – customer satisfaction rankings are consistently the highest Benefits to customers of running WPLC software on System i:  Simplicity: IT Staff can focus on business rather than technology issues because the System i requires less of their time to maintain.  Faster ROI: System i Wizards turn days of implementation into minutes – faster time to benefit  Integration: Collaboration applications typically run faster and work better on System i because of its integration with software  Scalability: Up to 350% more users on one system using the same application than Wintel based on IBM benchmarks. Fewer servers to maintain means more staff time for business innovation.  Reliability: legendary; “it just sits in the corner and runs” “Ctrl-Alt-Delete” We don’t have a clue what that is with System i  Flexibility: Should improve application availability and manageability by running multiple versions, multiple products, multiple instances simultaneously  Satisfaction: Customers love their System i – customer satisfaction rankings are consistently the highest

7. IBM System i © 2006 IBM Corporation 7 System i 520 Collaboration Edition Giving your customers more reasons to choose System i System i has always been a great platform to run WPLC applications. The new i520 Collaboration Edition gives our SMB customers even more reasons to choose System i for collaboration. The Collaboration Edition is:  Powerful –Unprecedented capability on entry level systems to run IBM’s leading Collaboration solutions –Up to 350% more users than the same application running on Windows based on IBM Benchmarks  Flexible –Deploy Lotus Domino, IBM Workplace or WebSphere Portal solutions with the flexibility and security of i5/OS –Customers can customize/add capacity to meet their needs  Cost effective alternative to running Collaboration on Windows servers –Competitively-priced total solution -- System i and WPLC applications -- for SMB –Great TCO for SMB –Improved customer ROI with improved price performance

8. IBM System i © 2006 IBM Corporation 8 Sell more on System i with the Collaboration Edition  Reason of call for installed DSD customers and other System i customers running back-level hardware and software –Leverage Domino 7 upgrades  Emphasize System i commitment to Domino customers  Competitively priced lead-with offering for SMB – door-opener to sell both systems and software: –WPLC portfolio of collaboration applications –System i 520 Collaboration Edition, other new systems, or drive capacity utilization on current systems  Leverage impending events: –Microsoft Exchange 2007 requires 64 bit servers Note 1 –Domino 7 Upgrades Note1: Microsoft publicly announced 12/14/2006 that Exchange 2007 will require 64 bit servers Best Opportunities Revised 5/8/06

9. IBM System i © 2006 IBM Corporation 9 Target SMB Opportunities  Replace existing System i running Domino: –Dedicated Server for Domino (DSD) –Other systems running Domino  Take out competitive hardware running Domino in System i and non- System i accounts  Drive new collaboration applications in System i accounts –Workplace Services Express –Sametime/QuickPlace –Portal  Microsoft Exchange customers looking for alternatives Target DSD models for the 550 Domino Edition  820 4-way offerings (2427 & 2458)  810 2-way offering (0771)  825 4-way and 6-way offerings (0772 & 0773) Target DSD models for the 520 Collaboration Edition  170 (2407, 2408,2409  270 (2422,2423,2424,2452,2453,2454)  810 (0769,0770)  820 (2456,2457) Best Opportunities Revised 5/8/06

10. IBM System i © 2006 IBM Corporation 10 Domino MCU Ratings Model n-way name software tierFC #MCU 520 1-way Collaboration Edition, P1076918,200 170 1-way, Dedicated Server for Domino (DSD) P052407N/A* 170 1-way DSD, P052408N/A* 170 1-way DSD, P102409N/A* 270 1-way DSD, P0524221,600 270 1-way DSD, P0524232,570 270 2-way DSD, P1024245,050 270 1-way DSD, P0524523,070 270 2-way DSD, P1024546,660 820 1-way DSD, P0524252,570 820 2-way DSD, P1024265,610 820 1-way DSD, P0524563,110 820 2-way DSD, P1024576,660 810 1-way iSeries for Domino, P1024663,100 810 1-way iSeries for Domino, P1024674,200 810 2-way iSeries for Domino, P2024697,900 MCU = Mail Calendar User. Benchmark of combined mail and calendar usage * MCU benchmark data not available, published much lighter weight Simple Mail User ratings of 1300, 2300, 4300 respectfully Note the 1/4-way 550 Domino Edition probably a better choice to replace larger 2-way and 4-way system This is a lot of horsepower …. And it can be upgraded to a 2-way if necessary!! Revised 5/8/06

11. IBM System i © 2006 IBM Corporation 11 Questions ?

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