IBM and Novell Announce First Blade Chassis Subscription for Linux

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

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.

Pricing and Availability
SUSE Linux Enterprise Server 9 for IBM BladeCenter(R) chassis offerings
provide customers with the ability to purchase a single SUSE Linux
Enterprise Server 9 offering and deploy SUSE Linux Enterprise Server 9
on any IBM BladeCenter server configured within a BladeCenter chassis,
including Intel x86-based, EM64T-based, AMD64-based, or POWER-based IBM
BladeCenter servers, whether 2 or 4-socket servers. This new pricing
model starts at $2,792 per annual Novell upgrade protection subscription
and will be available in October 2005. For more information, visit

About IBM
IBM is the world's largest information technology company, with 80
years of leadership in helping businesses innovate. Drawing on resources
from across IBM and key Business Partners, IBM offers a wide range of
services, solutions and technologies that enable customers, large and
small, to take full advantage of the new era of e-business. For more
information about IBM, visit

About Novell
Novell, Inc. (Nasdaq: NOVL) delivers Software for the Open
Enterprise(TM). With more than 50,000 customers in 43 countries, Novell
helps customers manage, simplify, secure and integrate their technology
environments by leveraging best-of-breed, open standards-based software.
With over 20 years of experience, Novell's 6,000 employees, 5,000
partners and support centers around the world help customers gain
control over their IT operating environment while reducing cost. More
information about Novell can be found at


*IDC Quarterly Server Report, August 2005
**Gartner Worldwide Quarterly Server Tracker, August 2005

Novell is a registered trademark, and SUSE and Software for the Open
Enterprise are trademarks of Novell, Inc. in the United States and other
countries. Linux is a registered trademark of Linus Torvalds. All other
third-party trademarks are the property of their respective owners.

Press Contacts:
Kevan Barney
(801) 861-2931

Vineeta Durani
IBM Corporation
(415) 545-2350

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