Businesses face a unique set of challenges as they look to grow in aglobally integrated economy. A perfect storm of data deluge, a fluidregulatory environment and widening information technology (IT) skills gapsis placing additional cost pressures on top of already resource-strappedorganizations. As a result, businesses are looking for new ways to drivemore value out of their IT infrastructures and free up resources forstrategic growth investments.

"We are moving our clients, the industry and even IBM itself to have amixture of data and applications that live in the data center and in thecloud," said Willy Chiu, vice president, high performance on demandsolutions, IBM. "IBM's cloud computing strategy was inspired by feedbackfrom the business world's broadest IT customer base indicating a growingdesire to utilize data, applications and services from any device and fromany location based on open standards."

IBM has a four-pronged strategy to capture the cloud computing opportunityby: 1) delivering its own cloud services portfolio; 2) helping ISVs design,build, deliver and market cloud services; 3) helping clients integratecloud services into their business; and 4) providing cloud computingenvironments to businesses.

IBM's clients and partners will have access to a growing number of cloudservices specialists through its worldwide network of 13 Cloud ComputingCenters and 40 IBM Innovation Centers to help test applications via cloudcomputing models.

IBM has extensive experience in building cloud computing solutions used forboth public and private cloud-delivered services. IBM's cloud-buildingservices include: server, storage and network virtualization, servicemanagement solutions to automate workload management, usage tracking andbilling and a portfolio of security and resiliency offerings to enableend-user confidence. IBM offers consulting and implementation skills fororganizations to leverage cloud computing as a key component of theiroverall business and IT strategy.

New IBM cloud services

IBM's ability to deliver cloud services is made possible by technologiesthat include Request-Driven Provisioning (RDP), Dynamic Workload Management(DWM), Usage and Accounting and Security. Offered as part of IBM's Tivoliportfolio, these technologies give clients and ISVs the assurance ofdelivering quality services from a cloud computing environment with theability to monitor and log activity, chargeback and secure identity andaccess management protections. New IBM cloud services areas that utilizethese technologies include:

1. "Bluehouse" -- IBM is launching a free open beta for "Bluehouse," thefirst Web-delivered social networking and collaboration cloud servicedesigned to connect people from different businesses. "Bluehouse" combinessocial networking and online collaboration tools to help businesses of allsizes to securely work together through firewalls and beyond organizationalboundaries. This suite of hosted online technologies allows individuals toshare documents, contacts, engage in joint project activities, host onlinemeetings and build social networking communities via the cloud through aWeb browser. The "Bluehouse" beta is available today athttp://bluehouse.lotus.com.

An example of IBM's Tomorrow at Work initiativeto anticipate trends in work styles, "Bluehouse" can be used by anyone tocollaborate with external groups, such as partners, agencies, suppliers,customers and outside experts as easily and securely as with co-workers.Small and medium-sized businesses will benefit from minimal up-front costsand maintenance of this Software as a Service (SaaS) platform, anddepartments in larger companies will have a quick, simple way to work withtheir key stakeholders within their intranet and out on the Web.

2. Lotus Sametime Unyte -- Arranges quick, easy Web conferences includingthe sharing of documents, presentations or applications through any Webconnection. No on-site software server deployment or support is needed.By enabling businesses to communicate in real-time with a worldwide networkof employees, partners and customers, Sametime Unyte will help localcompanies become global trading partners. IBM has built in severalenhancements to Sametime Unyte to enable global customer use throughmulti-language support and faster network performance. In addition,several new features make online meetings easier, including a "waitingroom" for meeting participants to gather and specialized alerts and promptsfor meeting hosts. Soon IBM will integrate Sametime Unyte with Lotus Notesand Lotus Sametime to allow people working in email or instant messaging tojoin Web conferences, with a single click of a button. Sametime Unyte isavailable at www.sametimeunyte.com.

3. IBM Rational Policy Tester OnDemand -- Helps reduce online risks byautomating Web content scanning to isolate privacy, quality andaccessibility compliance issues. Available as a subscription on an annualbasis, this software helps improve trust by detecting online usability andcompliance-related issues before they affect Web site visitors.

4. IBM Rational AppScan OnDemand -- Scans Web applications for securitybugs, allowing customers to immediately identify sources of online riskwithout the necessary time and investment for in-house training andresources.

5. Telelogic Focal Point -- Helps customers better manage their softwareinvestment by providing product management teams with the ability tocollect, analyze and prioritize product features in line with broaderorganizational goals. Telelogic Focal Point enhances communication bycentralizing the product information shared by product management,engineering, marketing and other stakeholders.

6. Remote Data Protection -- Reduces the risk associated with informationprotection, enabling clients to maximize the value of information andevolve to a service-enabled information infrastructure. IBM GlobalTechnology Services, through its acquisition of Arsenal Digital Solutions,is introducing Onsite Data Protection and Remote Data Protection. Theservice offerings enable clients to achieve a rapid time to protection fortheir business data and to remotely recover it as a cloud service 24/7.

New Cloud Services Resources for ISVs

IBM's cloud services resources can help ISVs build new applications quicklyusing open standards-based technologies. New resources include:

1. A new series of white papers, on-line demos and downloadable code tohelp ISVs address the common challenges of designing and buildingcloud-enabled services, such as multi-tenant architecture. Resourcesinclude enhanced technical blueprints on IBM's developerWorks Web site andtechnical support through IBM's global network of 40 Innovation Centers.

2. Creating a new SaaS Enablement Network of infrastructure providers thatuse IBM server technology to help ISVs deliver interoperable SaaSsolutions, which allow disparate applications to work together. Membersinclude Terremark, Rackforce, and iTricity, which recently opened a newCloud Computing Hosting Center for Belgium, The Netherlands and Luxembourg.IBM added 100 partners to its SaaS Specialty program in 2008, the largestannual increase which nearly doubles its SaaS partner ecosystem.

3. IBM Business Partners can take advantage of a variety of new marketingresources, including free web conferencing services using the IBM LotusSametime Unyte service.

On October 15 and 16, IBM will host partners and customers at its ExecutiveBriefing Center in Palisades, New York, to discuss its cloud servicesstrategy for this rapidly growing market. For more information on thisevent, visit https://www-950.ibm.com/events/wwe/swg/08bbpsaas.nsf.

For more information about IBM, please visit www.ibm.com.

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Contact:Sean TetponIBM Media Relations914-474-5508stetpon@us.ibm.com