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To: j g cordes who wrote (3202)6/5/1998 1:51:00 PM
From: James Burke  Respond to of 8218
 
Services has been the driving force for IBM. No one is growing in this
area more than big blue.

JB



To: j g cordes who wrote (3202)6/5/1998 3:01:00 PM
From: Don Hurst  Read Replies (2) | Respond to of 8218
 
J G, I have to agree with James Burke on the services side and I really felt that Dell would suffer last qtr like the rest of the PC
Mfgrs but they did not. Maybe IBM is in the same position. I saw that "New" Blue had won a $100 million contract with Pru to provide notebooks and services to all their agents. This was in the WSJ a week or so ago ($100 million sounds like a lot but that is what I remember). I believe I read some stuff recently about DB2 growth also. You also have Gerstner's comments to the analysts which should have at least as much credibility as Micheal Dell's. Add to that the new 390 box, decision to sell direct NetAffinity servers (what goes around comes around) continued success by IBM Microelectronics, IBM
Storage Systems (could be part of the reason for SEG, QNTM etc problems), plus good old financial engineering and 2nd qtr could be right on target again.

Now having said all that it is about time for another "Heard on the Street" WSJ article about IBM and it's 2nd qtr earnings (usually negative). Right now I am trying to figure out whether to write the June 120 calls.

Regards,

Don



To: j g cordes who wrote (3202)6/5/1998 6:01:00 PM
From: Toby  Respond to of 8218
 
I think that IBM is inflicting a lot of the pain under which the storage sector is suffering. IBM has taken a large bite out of market share, and added a lot of high end capacity.

IBM is flying high on management's own prediction of double digit revenue growth. If you invest, you can choose to believe management and their track record, or you can follow the market.

Until proven otherwise, I've found it a very good strategy to listen to this management and hold my stock.



To: j g cordes who wrote (3202)6/5/1998 11:18:00 PM
From: art slott  Respond to of 8218
 

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Friday June 5, 11:11 am Eastern Time
Company Press Release
IBM Announces Agreement for New E-business Solutions in China
Network Computing and Java Initiatives Promote Open Standards in China
BEIJING--(BUSINESS WIRE)--June 5, 1998-- IBM today announced strategic agreements with the Chinese Ministry of Information Industry and key industry partners to expand the development and use of e-business solutions in China, advance open standards for network computing in China, and create new Chinese versions of key e-business software tools.

Under the initiatives, these new solutions will be based on IBM's Network Computing Framework and Java technology. IBM also will work with local companies and developers on Chinese versions of JavaOS for Business, Lotus Notes/Domino, VisualAge for Java, eSuite, and IBM San Francisco business application components.

E-business describes the way organizations are reinventing their business models around networked transactions of all kinds -- with partners, suppliers and customers -- and requires advanced computer and networking systems, software, storage devices and IT services.

''Software applications, and, in particular Java, are focal points of today's agreement between the MII and IBM,'' said Mdm Zhang Qi, Director General of China's MII. ''In our efforts to further economic growth as well as the growth of Information Technology, the MII encourages the cooperation between domestic and international companies. The is the latest in a series of joint agreements between IBM and MII.''

''Thanks to this cooperation between IBM and the Chinese government and local developers, we will be able to support rapid deployment of new applications, provide businesses in China with choice and independence, and extend the reach of existing business solutions,'' said Mike Lawrie, General Manager, IBM Network Computing Software Division. ''Java allows for faster development of e-business applications, which means businesses operating in China can realize a faster return on investment and respond more quickly to changing requirements. This will also augment local Java programming skills and support a growing local software industry in China.''

''Sun and IBM are jointly developing JavaOS for Business. We are pleased that IBM, along with Sun, is helping customers in China realize the true benefits of thin client computing, namely ease of use, centralized management, rapid deployment of IT solutions and reduced cost of ownership,'' said Paul Li, Deputy Managing Director, PRC/Hong Kong of Sun Microsystems LTD.

IBM is leading a number of e-business initiatives in China. For example, IBM announced in April that it had become the first international provider of e-business services in China, extending total e-business technology and applications to strategic sites in the country, as well as announcing major initiatives with China Telecom to jointly develop other technology-based operational solutions for China's telecommunications industry.

Under today's agreements, IBM also has formed a strategic relationship with China's Great Wall Computer Group to co-develop a Chinese version of JavaOS for Business, the industry's most efficient operating system optimized for running 100% Pure Java applications in a centrally-managed computing environment.

IBM already provides support for Independent Solution Vendors (ISV), developers and educational institutions in China. IBM's Java initiatives in China currently includes a Solution Partnership Center in Beijing that provides application porting and tuning assistance to ISVs and developers. The IBM Java-in-schools program assists university professors in creating Java curriculum as well as train students and IT professionals in Java application development.

IBM also has worked with Chinese software development companies, such as Systems Incorporated, Great Wall Computer Group, and the Chinese Academy of Science, to develop localized versions of VisualAge for Java, Lotus eSuite/Domino, and IBM San Francisco business application components. IBM's Research Lab in Beijing also is working on key Java development projects.

Background on JavaOS for Business

JavaOS for Business, the result of a collaboration between Sun Microsystems and IBM, is one of the industry's most efficient ways to run cross-platform Java applications. It is designed to give OEMs, hardware device suppliers, independent software vendors, channel integrators, and enterprise customers with an industry standard operating system designed from the ground up to run Java applications in a network computing environment.

JavaOS for Business is designed for enterprise users -- such as insurance adjusters, bank tellers and call center employees -- that use line of business applications. The applications are stored and managed on the server, where IT professionals can focus on maintaining the computing environment centrally. This server-managed style of computing assists companies in rapidly deploying applications and services to the end user. Customers can benefit from a lower overall cost of computing while employees are able to concentrate on using computers as a simpler, more efficient tool for doing their jobs.

IBM brings the benefits of the JavaOS for Business product -- including ease of use, centralized management, rapid deployment of IT solutions and reduced cost of ownership -- to businesses deploying network computers with Intel processors.

JavaOS for Business also is designed so that client machines can connect to a range of hardware or software platform. This is a major benefit to companies looking to ''plug-in'' best solutions throughout their enterprise. To date, there are more than 1,000 Java applications available on the market.

About IBM San Francisco

IBM San Francisco application business components for Java is one of the industry's most ambitions Java initiatives and has been designed and built in the marketplace in cooperation with leading software vendors from around the world. Over 400 companies have licensed San Francisco which provides up to approximately 40 percent of the code needed to build enterprise-ready line of business applications. IBS and MAPICS are two significant additions to the software companies that have already committed to participating in IBM San Francisco. For additional information regarding IBM San Francisco visit the Web site ibm.com.

About IBM VisualAge for Java

IBM's award-winning VisualAge for Java is a premier integrated Java development environment. It is available in several editions, from a free Web-based trial version, to Professional, Enterprise and e-business editions. Additional information is available at software.ibm.com. For more information on IBM's e-business and software solutions, go to the IBM Home Page at www.ibm.com.

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Contact:
Asia Pacific:
Geraldine Kan
IBM Software Media Relations, China
Tel: (65) 320 1014
kanykg@sg.ibm.com
or
United States
Mark Guan
IBM Software Media Relations
Tel: 1-914-766-1658
markguan@us.ibm.com
software.ibm.com

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