IBM wins $20-30m Defense Ministry tender

This is the second successive win for IBM in the prestigious three-year servers tender.

For the second successive time, IBM has won a large tender to supply servers to Israel's Ministry of Defense for a period of three years. The servers IBM will supply will be based on x86 architecture processors (that is, Intel or AMD). The contract is estimated to be worth $20-30 million. Estimates of the value of the contract vary in the local IT market, with some taking into account additional projects the IDF will want to carry out, and the supply of software, such as in virtualization (VMWare), likely to be required.

The tender in question is considered one of the most prestigious in Israel. The Ministry of Defense, which carries out procurement for the IDF as well, divides its computer procurement into three separate tenders: portable; desktop; and servers. Each tender is for a three year period, and is financed by US military aid. Eighteen months ago, Dell won the portable computers tender, displacing Lenovo. IBM snatched the servers tender from HP three years ago, and has now won a further three-year contract. HP was IBM's competitor in the tender this time too, with Dell deciding not to bid.

According to IDC data, IBM led the Israeli market in 2006, with sales of some 15,000 units of x86 processor-based servers, taking a market share of about 27%, very largely thanks to the Ministry of Defense win. HP was in second place, with sales of some 14,200 servers and 26% of the market. Dell came third, with growth of 31% in server sales to 5,500 units, and a market share of 10%.

Published by Globes [online], Israel business news - - on November 21, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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