IBM United States Software Announcement , dated September 30, 2008

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, dated September 30, 2008 Selected IBM System x and BladeCenter servers now feature the Microsoft Windows Server 2008 Datacenter operating system and the availability of both Device-based and Client-based Windows Server 2008 Client Access Licenses (CALs) from IBM Table of contents 2 Key prerequisites 5 Technical information 2 Planned availability date 5 Ordering information 2 Description 8 Terms and conditions 4 Program number 8 Prices 4 Offering Information 9 Order now 4 Publications At a glance Selected IBM System x and BladeCenter server blade models can now be shipped with the Windows Server 2008 Datacenter operating system. This offering is optimized for large-scale virtualization on small to large server systems and for workloads that require the highest levels of scalability, reliability, and availability to support large, mission-critical applications. Orders for the Windows Server 2008 operating system are accepted only in conjunction with a valid hardware order. In addition to Windows Server 2008 Datacenter, both Device-based and User-based Windows Server 2008 Client Access Licenses (CALs) are available to be shipped by IBM. For ordering, contact your IBM representative, an IBM Business Partner, or IBM Americas Call Centers at 800-IBM-CALL (Reference: YE001). Overview Selected IBM System x and BladeCenter server blade models can now be shipped with the Windows Server 2008 Datacenter operating system. This offering is optimized for large-scale virtualization on small to large server systems and for workloads that require the highest levels of scalability, reliability, and availability to support large, mission-critical applications. With unlimited virtualization use rights and a hypervisor-based virtualization technology, Windows Server 2008 Datacenter provides the flexibility and cost savings to easily run large numbers of virtualized Windows Server instances. Windows Server 2008 Datacenter supports the memory and processing needs of large-scale, business-critical workloads such as ERP, databases, server consolidations, and custom and line-of-business applications. Orders for the Windows Server 2008 operating system are accepted only in conjunction with a valid hardware order. In addition to Windows Server 2008 Datacenter, both Device-based and User-based Windows Server 2008 Client Access Licenses (CALs) are available to be shipped by IBM. Similar to a Windows Server 2008 operating system license being required for each copy of the server software installed, a Windows Server 2008 Client Access License (CAL) is required for each user or device (or combination of both) that accesses or uses the server software. This IBM is a registered trademark of International Business Machines Corporation 1

holds true for all editions of Windows Server 2008 sold by IBM, except HPC Edition. Windows CALs are not required for HPC Edition. Note the following general exception to Windows CAL requirements: Windows CALs are not required when access to the server software is unauthenticated and conducted through the Internet. Authenticated access would include an exchange of user or application credentials between the server software and a user or device. An example of this exception would be if unidentified users browsed your public Web site. Windows CALs would not be required for those users. There are two types of Windows CALs to choose from-device-based or user-based, known as Windows Device CALs or Windows User CALs. This means you can choose to acquire a Windows CAL for every device (used by any user) accessing your servers, or you can choose to acquire a Windows CAL for every named user accessing your servers (from any device). The option to choose between the two types of Windows CALs offers you the flexibility to use the licensing that best suits the needs of your organization. For example: Windows Device CALs might make most economic and administrative sense for an organization with multiple users for one device, such as shift workers. Whereas, Windows User CALs might make most sense for an organization with many roaming employees that need access to the corporate network from unknown devices and/or employees who access the network via multiple devices. Terms and conditions of this program are set forth by Microsoft and VMware, not IBM. IBM makes no representations or warranties regarding third-party products or services. Some software may differ from its retail version (if available); and may not include user manuals or all program functionality. Software license agreements may apply. 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. IBM makes no representation or warranty regarding third party products. The information in IBM Announcement Letters is provided as-is without warranty of any kind and is subject to change without notice. Key prerequisites Must be ordered with System x and BladeCenter hardware. Planned availability date October 10, 2008 Description Windows Server 2008 Datacenter Features Large-Scale Virtualization Server virtualization technology lets you optimize system utilization and resources and realize significant infrastructure and management cost savings. Windows Server 2008 Datacenter provides an ideal platform for enterprise-scale virtualization. IBM is a registered trademark of International Business Machines Corporation 2

Windows Server 2008 Datacenter features Hyper-V, a flexible high-performance hypervisorbased virtualization technology. In addition, Windows Server 2008 Datacenter licenses include unlimited virtualization rights, meaning that you have rights to run an unlimited number of Windows Server instances on servers licensed with Windows Server 2008 Datacenter. This gives you the benefits of virtualization while helping to reduce license management headaches and costs, thus helping you: Logically consolidate servers and streamline management. Reduce the cost associated with power, cooling, and data center space. Increase the availability of your systems. (The quick migration feature enables you to easily move running virtual machines between their physical hosts.) Reduce server sprawl by using multiple virtual machines hosted on a physical server. Increased Scalability As organizations rapidly grow and change, IT infrastructures must remain flexible and scalable to help support, manage, and secure expanded functionality, an influx of additional users and locations, and increasingly robust applications. Windows Server 2008 Datacenter easily scales to adapt to the increased needs of data warehousing and transaction processing. This scalability also allows for improved resource planning. Windows Server 2008 Datacenter provides: Support for up to 64 processors and 2 terabytes of RAM. Support for a virtually unlimited number of virtual private network (VPN) connections. Authentication and authorization for a virtually unlimited number of network access service and network policy server connections. Windows Server 2008 Client Access License (CAL) Device-based vs. Client-based Windows CALs: There are two types of Windows CALs to choose from-device-based or user-based, known as Windows Device CALs or Windows User CALs. This means you can choose to acquire a Windows CAL for every device (used by any user) accessing your servers, or you can choose to acquire a Windows CAL for every named user accessing your servers (from any device). The option to choose between the two types of Windows CALs offers you the flexibility to use the licensing that best suits the needs of your organization. For example: Windows Device CALs might make most economic and administrative sense for an organization with multiple users for one device, such as shift workers. Whereas, Windows User CALs might make most sense for an organization with many roaming employees that need access to the corporate network from unknown devices and/or employees who access the network via multiple devices. Client Access Licensing Modes After you have selected a license type-windows Device CAL or Windows User CAL, you have the option to use the server software in two different modes: Per User/Per Device mode or Per Server mode. Both modes are available for either type of license. Per User/Per Device mode is defined as follows: A separate Windows CAL (of either type) is required for each user or device that accesses or uses the server software on any of your servers. The number of Windows CALs required equals the number of users or devices accessing the server software. If you choose this licensing mode, your choice is permanent. You can, however, reassign a Windows CAL from one device to another device or from one user to another user, provided the reassignment is made either (a) permanently away from the one device or user or (b) temporarily to accommodate the use of the Windows CAL either by a loaner device, while a permanent device is out of service, or by a temporary worker, while a regular employee is absent. IBM is a registered trademark of International Business Machines Corporation 3

Per User/Per Device mode tends to be the most economical designation for Windows CALs in distributed computing environments where multiple servers within an organization provide services across most devices or users. Note that Per User/Per Device mode replaces Per Seat mode, used in previous licensing models. Per Server mode is defined as follows: A separate Windows CAL (of either type) is required for each user or device that accesses or uses the server software on any of your servers. The number of Windows CALs required equals the maximum number of users or devices that may simultaneously access or use the server software installed on a particular server. The Windows CALs you acquire are designated for use exclusively with a particular server. If you choose this licensing mode, you have a one-time right to switch to the other licensing mode-per User/Per Device mode. Your Windows CALs (of either type) would then be used in Per User/Per Device mode instead. Per Server mode tends to be the most economical designation for Windows CALs in computing environments where a small number of servers have limited access requirements. Program number Program number Program name 5731-W08 Windows Server 2008 5731-CAL Windows Server 2008 Client Access Licenses 5731-VMW VMware Virtual Infrastructure 3.5 5771-VMW VMware Virtual Infrastructure 3.5-1 Year Subscription 5773-VMW VMware Virtual Infrastructure 3.5-3 Year Subscription Product identification number Maintenance Maintenance Program PID number 1 year PID number 3 year PID number 5731-W08 N/A N/A 5731-CAL N/A N/A 5731-VMW 5771-VMW 5773-VMW Offering Information Product information is available via the Offering Information Web site http://www.ibm.com/common/ssi Business Partner information If you are a Direct Reseller - System Reseller acquiring products from IBM, you may link directly to Business Partner information for this announcement. A PartnerWorld ID and password are required (use IBM ID). https://www.ibm.com/partnerworld/mem/sla.jsp?num= Publications No publications are shipped from IBM with this program. IBM is a registered trademark of International Business Machines Corporation 4

Technical information Specified operating environment Hardware requirements Supported IBM System x or BladeCenter servers. For the latest list of systems supported, visit http://www-03.ibm.com/servers/eserver/serverproven/compat/us/ Software requirements The program's specifications and specified operating environment information may be found in documentation accompanying the program, if available, such as a README file, or other information published by IBM, such as an announcement letter. Documentation and other program content may be supplied only in the English language. Compatibility Some configurations may not be compatible. Planning information Cable orders required: No Installation time: Approximately one hour Security, auditability, and control The customer is responsible for evaluation, selection, and implementation of security features, administrative procedures, and appropriate controls in application systems and communication facilities. The customer is responsible for evaluation, selection, and implementation of security features, administrative procedures, and appropriate controls in application systems and communication facilities. Software Services IBM Software Services has the breadth, depth, and reach to manage your services needs. You can leverage the deep technical skills of our lab-based, software services team and the business consulting, project management, and infrastructure expertise of our IBM Global Services team. Also, we extend our IBM Software Services reach through IBM Business Partners to provide an extensive portfolio of capabilities. Together, we provide the global reach, intellectual capital, industry insight, and technology leadership to support a wide range of critical business needs. To learn more about IBM Software Services or to contact a Software Services sales specialist, visit http://www.ibm.com/software/sw-services/ Ordering information Charge metric Program name PID number Charge metric Windows Server 2008 5731-W08 Per 1 Processor Server Per 2 Processor Server Per 4 Processor Server IBM is a registered trademark of International Business Machines Corporation 5

Windows Server 2008 Client 5731-CAL Per 5 User CALs Access Licenses Per 5 Device CALs VMware Virtual Infrastructure 3.5 5731-VMW Per 8 sockets VMware Virtual Infrastructure 3.5-1 Year Subscription 5771-VMW Per 8 sockets VMware Virtual Infrastructure 3.5-3 Year Subscription 5773-VMW Per 8 sockets Program delivery Except where noted, configuration aids, either IBM Configurator for e-business or IBM Hardware Configurator, must be used for creation of valid software and hardware orders for the offerings in this announcement as well as other referenced and affiliated announcement offerings. Billing for the operating systems will occur under the licensed program order number contained in this announcement. The licenses below are available for standalone purchase. To order these programs, specify the type model number, order type description, one-time charge (OTC) feature number with quantity, and supply feature, or the SEO (single entity offering) number as indicated and listed in the tables below. OTC Supply Type model number feature feature SEO feature description number number Feature 5731-CAL Windows Server 2008 Client Access Licenses Per 5 User CALs 0136 6002 4849KCM Per 5 Device CALs 0135 6002 4849KDM 5731-VMW Virtual Infrastructure 3.5 VMware Infra Enterprise Accel Kit - 8 Sockets - License Only Per 8 Sockets 0078 5809 4817V88 The following license offerings can be ordered in conjunction with a new system order on which the selected operating system has been announced as an offering. Shipment of materials when ordered with a new system will be included with the system unit. To order the programs listed below with a new system order, specify the type model number, order type description, one-time charge (OTC) feature, preinstall feature, or drop-in-the-box feature as indicated and listed in the tables below. Note: A Hardware Installation Productivity Order (HIPO) must be placed if the operating system is part of a new system order. The feature numbers included on a HIPO order provide instructions and actions to the hardware and software Solution Provider and will be used to verify that the software orders for a given system unit solution exist and can be used for various logistical and business system measurements. HIPO ordering information follows this section. OTC Drop- Billing Supply Preload in-box Type model number feature feature feature feature feature description number number number number 5731-W08 Windows 2008 Server Datacenter (32-Bit, 5 UserCAL, factory installed) Per 1 Processer Server 0132 5809 3522 3523 Per 2 Processer Server 0133 5809 3522 3523 Per 4 Processer Server 0134 5809 3522 3523 Datacenter (64-Bit, 5 UserCAL, factory installed) Per 1 Processer Server 0132 5819 3522 3523 Per 2 Processer Server 0133 5819 3522 3523 Per 4 Processer Server 0134 5819 3522 3523 IBM is a registered trademark of International Business Machines Corporation 6

Datacenter (32-Bit, 5 UserCAL, not preinstalled) Per 1 Processer Server 0132 5809 n/a 3523 Per 2 Processer Server 0133 5809 n/a 3523 Per 4 Processer Server 0134 5809 n/a 3523 Datacenter (64-Bit, 5 UserCAL, not preinstalled) Per 1 Processer Server 0132 5819 n/a 3523 Per 2 Processer Server 0133 5819 n/a 3523 Per 4 Processer Server 0134 5819 n/a 3523 Serialization feature 3444 For order routing purposes, serialization feature code 3444 must be included on every operating system license program order. Hardware installation productivity order (HIPO) 5372-SWX HIPO is mandatory for preinstall or shipments of program media and publications associated with new system orders with operating system offerings in this announcement. The translation table below is for reference purposes. The operating system type model number, with offered OTC feature numbers, are cross referenced to features that must be included on the 5372-SWX HIPO type model order for the purpose of completing valid (error free) "system solution" orders. 5372-SWX Operating O/S O/S HIPO HIPO HIPO HIPO HIPO HIPO HIPO System OTC Supp O/S Spec Spec Spec Spec PI Spec Type model feat feat ID 1 ID Lang Proc H/W no PI DIB Number Num Num feat feat feat feat feat feat feat 5731-W08 Windows Server 2008 Datacenter (32-Bit, 1 Processor only, 5 UserCAL, factory installed) 0132 5809 7228 n/a 2924 7953 n/a 9200 9205 Datacenter (32-Bit, 2 Processor only, 5 UserCAL, factory installed) 0133 5809 7228 n/a 2924 7956 n/a 9200 9205 Datacenter (32-Bit, 4 Processor only, 5 UserCAL, factory installed) 0134 5809 7228 n/a 2924 7957 n/a 9200 9205 Datacenter (64-Bit, 1 Processor only, 5 UserCAL, factory installed) 0132 5819 7229 n/a 2924 7953 n/a 9200 9205 Datacenter (64-Bit, 2 Processor only, 5 UserCAL, factory installed) 0133 5819 7229 n/a 2924 7956 n/a 9200 9205 Datacenter (64-Bit, 4 Processor only, 5 UserCAL, factory installed) 0134 5819 7229 n/a 2924 7957 n/a 9200 9205 Datacenter (32-Bit & 64-Bit, 1 Processor only, 5 UserCAL, not preinstalled) 0132 5809 7228 n/a 2924 7953 n/a 9206 9205 0132 5819 7229 n/a 2924 7953 n/a 9206 9205 Datacenter (32-Bit & 64-Bit, 2 Processor only, 5 UserCAL, not preinstalled) 0133 5809 7228 n/a 2924 7956 n/a 9206 9205 0133 5819 7229 n/a 2924 7956 n/a 9206 9205 Datacenter (32-Bit & 64-Bit, 4 Processor only, 5 UserCAL, not 0134 5809 7228 n/a 2924 7957 n/a 9206 9205 0134 5819 7229 n/a 2924 7957 n/a 9206 9205 Software subscription Billing Supply Type model number feature feature SEO feature description number number number 5771-VMW VMware Virtual Infrastructure 3.5-1 Year Subscription Subscription Only VMware Infra Ent Accel Kit - 8 Sockets - 1 Year Per 8 Sockets 1 Year Subscription 1363 5809 4817S88 5773-VMW VMware Virtual Infrastructure 3.5-3 Year Subscription Subscription Only VMware Infra Ent Accel Kit - 8 Sockets - 3 Year IBM is a registered trademark of International Business Machines Corporation 7

Per 8 Sockets 3 Year Subscription 1107 5809 4817T88 Customization options Select the appropriate feature numbers to customize your order with delivery options desired. These features can be specified on the initial or MES orders. Expedite shipments Feature Description 3445 Expedite Expedite shipments will be processed to receive 72-hour delivery from the time IBM Software Delivery and Fulfillment (SDF) receives the order. Terms and conditions The information provided in this announcement letter is for reference and convenience purposes only. The terms and conditions that govern any transaction with IBM are contained in the applicable contract documents such as the IBM International Program License Agreement, IBM International Passport Advantage Agreement, and the IBM Agreement for Acquisition of Software Maintenance. Licensing Supplier's license terms apply. Limited warranty Not warranted by IBM. Warranty, if any, provided by supplier. Volume orders Not applicable Educational allowance Yes. 15% to qualified educational institutions. Prices Information on charges is available at http://www.ibm.com/support Choose the option entitled Purchase/upgrade tools. Type model number feature description Billing feature number 5731-W08 Windows Server 2008 Datacenter, 5 UserCAL Per 1 Processor Server 0132 Per 2 Processor Server 0133 Per 4 Processor Server 0134 5731-CAL Windows Server 2008 Client Access Licenses Per 5 User CALs 0136 Per 5 Device CALs 0135 5731-VMW VMware Virtual Infrastructure 3.5 IBM is a registered trademark of International Business Machines Corporation 8

VMware Infra Enterprise Accel Kit - 8 Sockets - License Only Per 8 Sockets 0078 5771-VMW VMware Virtual Infrastructure 3.5 1 Yr Subscription Subscription Only VMware Infra Ent Accel Kit - 8 Sockets - 1 Year Per 8 Sockets 1 Yr Subscription 1363 5773-VMW VMware Virtual Infrastructure 3.5 3 Yr Subscription Subscription Only VMware Infra Ent Accel Kit - 8 Sockets - 3 Year Per 8 Sockets 3 Yr Subscription 1107 IBM Global Financing IBM Global Financing offers competitive financing to credit-qualified customers to assist them in acquiring IT solutions. Offerings include financing for IT acquisition, including hardware, software, and services, from both IBM and other manufacturers or vendors. Offerings (for all customer segments: small, medium, and large enterprise), rates, terms, and availability can vary by country. Contact your local IBM Global Financing organization or visit http://www.ibm.com/financing IBM Global Financing offerings are provided through IBM Credit LLC in the United States, and other IBM subsidiaries and divisions worldwide to qualified commercial and government customers. Rates are based on a customer's credit rating, financing terms, offering type, equipment type, and options, and may vary by country. Other restrictions may apply. Rates and offerings are subject to change, extension, or withdrawal without notice. Financing offering/capabilities For more financing information, visit http://www.ibm.com/financing Order now To order, contact the Americas Call Centers, your local IBM representative, or your IBM Business Partner. Identify your local IBM representative or IBM Business Partner, call 800-IBM-4YOU (426-4968). Phone: 800-IBM-CALL (426-2255) Fax: 800-2IBM-FAX (242-6329) Internet: callserv@ca.ibm.com Mail: IBM Teleweb Customer Support ibm.com Sales Execution Center, Americas North 3500 Steeles Ave. East, Tower 3/4 Markham, Ontario Canada L3R 2Z1 Reference: YE001 The Americas Call Centers, our national direct marketing organization, can add your name to the mailing list for catalogs of IBM products. Note: Shipments will begin after the planned availability date. Trademarks System x is a trademark of IBM Corporation in the United States, other countries, or both. IBM, BladeCenter, PartnerWorld, Passport Advantage and ibm.com are registered trademarks of IBM Corporation in the United States, other countries, or both. IBM is a registered trademark of International Business Machines Corporation 9

Windows and Microsoft are registered trademarks of Microsoft Corporation in the United States, other countries, or both. Other company, product, and service names may be trademarks or service marks of others. Terms of use IBM products and services which are announced and available in your country can be ordered under the applicable standard agreements, terms, conditions, and prices in effect at the time. IBM reserves the right to modify or withdraw this announcement at any time without notice. This announcement is provided for your information only. Additional terms of use are located at http://www.ibm.com/legal/us/en/ For the most current information regarding IBM products, consult your IBM representative or reseller, or visit the IBM worldwide contacts page http://www.ibm.com/planetwide/us/ IBM is a registered trademark of International Business Machines Corporation 10