TEL AVIV, Israel, and ARMONK, N.Y., Jan. 2 -- IBM today announced it has acquired XIV, a privately held storage technology company based in Tel Aviv, Israel. XIV, its technologies and employees, will become part of the IBM System Storage business unit of the IBM Systems and Technology Group. Financial terms of the acquisition are not being disclosed.

"The acquisition of XIV will further strengthen the IBM infrastructure portfolio long term and put IBM in the best position to address emerging storage opportunities like Web 2.0 applications, digital archives and digital media," said Andy Monshaw, general manager of IBM System Storage. "The ability for almost anyone to create digital content at any time has accelerated the need for a whole new way of applying infrastructure solutions to the new world of digital information. IBM's goal is to provide the leading technologies and solutions at every layer of the data center -- storage, servers, software and services -- to address these new realities IT customers face."

To address the new requirements associated with next generation digital content, IBM chose XIV and its NEXTRA architecture for its ability to scale dynamically, heal itself in the event of failure, and self-tune for optimum performance, all while eliminating the significant management burden typically associated with rapid growth environments. The architecture also is designed to automatically optimize resource utilization of all the components within the system, which can allow for easier management and configuration and improved performance and data availability.

"We are pleased to become a significant part of the IBM family, allowing for our unique storage architecture, our engineers and our storage industry experience to be part of IBM's overall storage business," said Moshe Yanai, chairman of XIV. "We believe the level of technological innovation achieved by our development team is unparalleled in the storage industry. Combining our storage architectural advancements with IBM's world-wide research, sales, service, manufacturing, and distribution capabilities will provide us with the ability to have these technologies tackle the emerging Web 2.0 technology needs and reach every corner of the world."

The NEXTRA architecture has been in production for more than two years, with more than 4 petabytes of capacity being used by customers today.

IBM's acquisition of XIV supports the IBM growth strategy and capital allocation model, as part of the company's overall objective for earnings-per-share growth through 2010.

Through its deep industry expertise, patent leadership, research and innovation, IBM has long been the leader in providing customers with technology solutions that help them deliver and utilize information effectively. With industry recognized leadership in storage and server hardware and software, and through the recent strategic acquisitions of Softek, FileNet and NovusCG, IBM has grown its storage services offerings and presents customers with strategic solutions to deliver integrated software, hardware, services and research in standardized offerings that can be used by customers of all sizes to help them transform their businesses.

About XIV

For more information about XIV, visit www.xivstorage.com.

About IBM

For more information about IBM System Storage, visit www.ibm.com/storage.