© 2009 IBM Corporation System z Solution Editions: Legendary Mainframe quality... At new competitive prices! STG System z Marketing July 2009 INTERNAL USE ONLY ENABLEMENT

Systems & Technology Group © 2009 IBM Corporation IBM System z Internal Use Only Trademarks The following are trademarks of the International Business Machines Corporation in the United States and/or other countries. The following are trademarks or registered trademarks of other companies. * Registered trademarks of IBM Corporation * All other products may be trademarks or registered trademarks of their respective companies. Notes: Performance is in Internal Throughput Rate (ITR) ratio based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput 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 improvements equivalent to the performance ratios stated here. IBM hardware products are manufactured from new parts, or new and serviceable used parts. Regardless, our warranty terms apply. All customer examples cited or described in this presentation are presented as illustrations of the manner in which some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions. This publication was produced in the United States. IBM may not offer the products, services or features discussed in this document in other countries, and the information may be subject to change without notice. Consult your local IBM business contact for information on the product or services available in your area. All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. Information about non-IBM products is obtained from the manufacturers of those products or their published announcements. IBM has not tested those products and cannot confirm the performance, compatibility, or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products. Prices subject to change without notice. Contact your IBM representative or Business Partner for the most current pricing in your geography. Adobe, the Adobe logo, PostScript, and the PostScript logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States, and/or other countries. Cell Broadband Engine is a trademark of Sony Computer Entertainment, Inc. in the United States, other countries, or both and is used under license therefrom. Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. 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. INFINIBAND, InfiniBand Trade Association and the INFINIBAND design marks are trademarks and/or service marks of the INFINIBAND Trade Association. 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. UNIX is a registered trademark of The Open Group in the United States and other countries. Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both. ITIL is a registered trademark, and a registered community trademark of the Office of Government Commerce, and is registered in the U.S. Patent and Trademark Office. IT Infrastructure Library is a registered trademark of the Central Computer and Telecommunications Agency, which is now part of the Office of Government Commerce. IBM* IBM Logo* ibm.com* GDPS* System z* System z10 WebSphere* z/OS* z10 EC

Systems & Technology Group © 2009 IBM Corporation IBM System z Internal Use Only The Mainframe Charter: Continuing the Commitment Innovation Value Community Generation to generation price / performance gains Unique value of specialty engines Ability to reduce energy costs by up to 80% Breakthrough performance Massive Scale and capacity Investment Protection Just-in-time Capacity Unprecedented resiliency and security Academic Initiative includes >600 colleges and more than 50,000 students Linux ® on System z ® matures with >2,900 applications Total applications now > 6,000 from > 1,600 ISVs Comprehensive middleware IBM Destination z, hub of the community 2009: Continuing the commitment 2003: Mainframe charter announced Value Delivered: MIPs growth of >20% CAGR fuelled by Innovation that matters: System z10™ A Vibrant Community: 7 New Solution Editions Lower HW pricing for Linux zFutures Roadmap IBM Hiring “Next generation” New ISVs

Systems & Technology Group © 2009 IBM Corporation IBM System z Internal Use Only  Special package pricing for our most popular solutions –z10 HW (standalone footprint or isolated LPAR) –Prepaid HW maintenance –Comprehensive middleware stack (including S&S) –Services (as needed) –Storage (as needed)  Legendary Mainframe quality: –Unparalleled quality, security, availability and scale –Integration of applications with corporate data –Industry leading virtualization, management and resource provisioning –Unparalleled Investment protection  Competitive acquisition prices, with leadership TCO Announcing the new System z Solution Editions: Legendary Mainframe quality, security, availability, and scale….. priced to be competitive with UNIX ® alternatives* *IBM “Stack” Price, designed to be as low as 20% of equivalent HP-UX Itanium ® based solutions at typical market discounts  Data Warehousing  SAP  ACI  WebSphere ®  Security  GDPS ®  Application Development

Systems & Technology Group © 2009 IBM Corporation IBM System z Internal Use Only  IFL prices for System z10 EC™ reduced to $75k USD*.  Reduced Memory prices extended to ALL new workload running on System z10™ Servers - Now $2,250 USD per GB**  Increased maintenance discount delegation  Combine with zRewards to help mitigate migration costs Now better economics for Linux workloads: New price actions to lower the cost of acquisition *Price are stated in US currency and may vary by country. This is for IFLs only, zIIPs and zAAP remain at $125k. Specialty engines do not include Internal Coupling Facilities (ICFs). ** New workloads defined consistent with zNALC terms and conditions and also include all Linux workloads. Prices will vary by country. Limited to 16GB per qualifying new processor. Save up to 39% with System z before energy, admin, and floor space considerations

Systems & Technology Group © 2009 IBM Corporation IBM System z Internal Use Only AD ACIDWWASGDPSSAPSecurity Legacy applications base Transformation Services TCO, ITO studies IBM zTransformation agreement Innovative Terms and Conditions Financial plan to grow profit New z/OS ® workload Solution Editions Strategic Technical plan Sun Attack Linux for System z Plays Legacy/customized application growth zNext briefing Lead with GBS New pricing Include Migration costs Engage SWG CPO New pricing Customer zTransformation structure

Systems & Technology Group © 2009 IBM Corporation IBM System z Internal Use Only 7 Three steps to build 2009 pipeline and revenue 1.Examine account plans and identify opportunities for aggressively priced new workloads Client Execs to identify and prioritize System z opportunities Propose Solution Editions to drive in incremental 2H revenue LEAD WITH z on new workloads in accounts that have a z installed Assure proper use of ISA codes in Siebel / PRISM. 2.Identify opportunities to consolidate workloads from competitive platforms Use zRewards to lower cost of migration Use Migration Factory and ITO to migrate competitive platforms 3.Deliver a z Transformation proposal to key accounts Address client’s concerns by growing clients into lower cost/MIP. Focus on top 457 accounts WW (but not exclusively) System z Solution Editions Sales Kit and on-line tools Sales Kit: 5 minute Podcast and Customer Presentation 5 Minute Podcast: