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From: Owner-OS2News@teamos2.org

Subject: OS2News: New Pricing Model for Notes

Lotus Adopts New Pricing Model for Its Notes Business                         
 
December 13, 1995                                                             
 
                                                                              
 
Includes New $55 Notes Mail Client Software                                   
 
                                                                              
 
CAMBRIDGE, Mass, Dec. 13, 1995 - Lotus Development Corp. today                
 
announced a new Notes Mail client and a significant price reduction           
 
for the run time client version of its Lotus Notes software.  The new         
 
mail client and the reduced price are expected to accelerate sales and        
 
deployment of Notes, the world's leading messaging and groupware              
 
software.                                                                     
 
                                                                              
 
Notes Mail will have an estimated retail price (ERP) of $55 per single        
 
user license, and will ship concurrent with Notes Release 4.  The ERP         
 
for a single-user license for Notes Desktop, the run time version of          
 
Notes, will be reduced by 55 percent to $69 from $155, effective              
 
immediately. All Notes Release 4 client software will include                 
 
InterNotes Web Navigator, a feature that allows users to access the           
 
World Wide Web.                                                               
 
                                                                              
 
Under the new pricing model, Notes server pricing will also change.           
 
Notes server software for single processor systems will have an ERP of        
 
$495, and Notes server software for multiple processor systems will           
 
have an ERP of $2,295.  The new server prices will take effect when           
 
Notes Release 4 ships.                                                        
 
                                                                              
 
Notes server software currently has an ERP of $275 for all processors.        
 
InterNotes Web Publisher software, which enables organizations to             
 
extend Notes information and applications to the Web, will be                 
 
available free via the Web to Notes customers effective with shipment         
 
of Notes Release 4. Web Publisher Release 2.0 currently has an ERP            
 
of $2,995.  (See "Lotus Ships InterNotes Web Publisher Release 2.0"           
 
press release, Nov. 22, 1995.) The "per user" cost of Notes server            
 
software and the overall cost-of-ownership are also expected to be            
 
lower as a result of performance enhancements to Notes Release 4 and          
 
support for large, symmetric multiprocessor systems.  These                   
 
enhancements will permit individual servers to handle more clients.           
 
                                                                              
 
The price of NotesSuite Desktop upgrade, which includes a single user         
 
license of Notes Desktop, the SmartSuite desktop productivity                 
 
applications, and the NotesSuite Application Collection, will also be         
 
reduced by 33 percent to an ERP of $199 from an available through             
 
OEM channels.                                                                 
 
                                                                              
 
"The new, more aggressive pricing for Notes will allow our customers          
 
to more quickly deploy Notes throughout their organizations.  In              
 
particular, the new mail client and lower pricing will make Notes much        
 
more attractive for users who need electronic mail and Internet               
 
access," said Jeff Papows, Lotus' executive vice president and chief          
 
operating officer.   "This new pricing model is one example of the            
 
benefit of our merger with IBM. Lotus can now take a longer term              
 
financial perspective and position ourselves as the price and value           
 
leader in the messaging and groupware market." $55 Notes Mail Provides        
 
Advanced Messaging, Web Access and Groupware market."                         
 
                                                                              
 
The new Notes Mail client software includes advanced messaging                
 
features InterNotes Web Navigator which allows access to the Internet,        
 
the award-winning cc:Mail user interface, support for mobile users,           
 
agents to automate routine tasks, discussion databases, document              
 
libraries, and workflow applications. (See separate release,                  
 
"Lotus Announces Notes Mail", Dec. 13, 1995)                                  
 
                                                                              
 
Notes Desktop client software includes the ability to run all custom          
 
Notes applications as well as all the features of Notes Mail.                 
 
                                                                              
 
Full Notes client software, with an ERP of $275 per user license,             
 
includes Notes application development tools in addition to all the           
 
features of Notes Desktop client software.                                    
 
                                                                              
 
<pre>                                                                         
 
Notes Clients                                                                 
 
                                                                              
 
Notes Mail             Notes       Desktop      Full Notes                    
 
Advanced messaging      X            X            X                           
 
Mobile user support     X            X            X                           
 
Discussion Databases    X            X            X                           
 
Document Libraries      X            X            X                           
 
Run Custom Applications              X            X                           
 
Develop Applications                              X                           
 
ERP with Release 4 shipment $55*    $69*        $275*                         
 
Current ERP            N/A          $155*       $275*                         
 
                                                                              
 
*Estimated retail price for volume purchases                                  
 
                                                                              
 
Notes Servers                                                                 
 
                                                                              
 
Single Processor      Server     Multiprocessor   Server                      
 
Web Publisher                          X             X                        
 
Multithreaded Replication              X             X                        
 
Field Level Replication                X             X                        
 
Multithreaded Mail Routing             X             X                        
 
Improved Administration Tools          X             X                        
 
Mid 1996 HTTP Server Combination       X             X                        
 
Up to 1000 concurrent users**                        X                        
 
ERP with Release 4                    $495***	$2,295***   
Current ERP                  $275 + $2,995***	$275 + $2,995***
                                                                              
 
*on selected operating systems                                                
 
**on selected platforms                                                       
 
***Estimated retail price for volume purchases                                
 
                                                                              
 
Major Enhancements in Notes Release 4                                         
 
Lotus Notes Release 4 includes enhancements in six key areas:                 
 
                                                                              
 
Integrated Client/Server Messaging - Notes Release 4 includes world           
 
class, robust client/server e-mail and messaging, bringing a wide             
 
range of new enterprise messaging capabilities to users,                      
 
administrators and application developers                                     
 
                                                                              
 
Ease of Use - In addition to user interface enhancements, Notes               
 
Release 4 adds intuitive new tools, such as intelligent agents,               
 
to make it easier for users to store and navigate information.                
 
                                                                              
 
Mobility - Mobile users have always benefited from Notes' unique              
 
replication capabilities.  Notes Release 4 adds additional usability          
 
enhancements and tools for managing information remotely.                     
 
                                                                              
 
Internet integration - New features in Notes Release 4 give users             
 
access to the Internet and allow them to integrate Internet                   
 
information into their Notes environment.                                     
 
                                                                              
 
Application Development and Programmability - Notes Release 4 includes        
 
LotusScript 3.0, a cross-platform, BASIC compatible, object oriented          
 
programming language, in addition to advanced Notes programming tools.        
 
                                                                              
 
Enterprise Management - For administrators, Notes Release 4 offers            
 
enhanced administration and management; increased server performance;         
 
and greater scaleability for more efficient management of                     
 
mission-critical, enterprise-wide Notes applications.                         
 
                                                                              
 
                                                                              
 
Lotus Notes is the leading client-server platform for developing and          
 
deploying strategic groupware applications that help organizations            
 
communicate, collaborate and coordinate strategic business processes          
 
within and beyond their organizational boundaries to achieve improved         
 
business results.  More than 7,000 companies and more than 3.3 million        
 
people use Notes to improve key business processes such as customer           
 
service, sales and account management, and product development.  Lotus        
 
Notes supports all major operating systems: IBM OS/2 Warp,                    
 
Apple Mac OS, UNIX platforms including IBM AIX, Sun Solaris, HP-UX,           
 
and SCO OpenServer, and Microsoft Windows and Windows NT. Notes is            
 
also available as a NetWare loadable module for the Novell                    
 
environment.                                                                  
 
                                                                              
 
Lotus Development Corp., a wholly-owned subsidiary of IBM Corp.,              
 
offers high quality software products and support services that               
 
reflect the company's unique understanding of the new ways in which           
 
individuals and businesses must work together to achieve success.             
 
Lotus' innovative approach is evident in a new class of applications          
 
that allows information to be accessed and communicated in ways never         
 
before possible, both within and beyond organizational boundaries.            
 
The company also provides numerous support services, both from its            
 
consulting division and its award-winning 24-hour support center.             
 
                                                                              
 
EDITOR'S NOTE: All Lotus news releases are available on the Internet,         
 
via the Lotus Development Corp. Home Page at http://www.lotus.com.            
 
The Lotus Home Page is an easy way to find information about Lotus and        
 
its business partners' products and services.                                 
 
                                                                              
 
All prices and terms are for the U.S. only.  Notes prices are                 
 
estimated retail prices for volume purchases through Lotus' Passport          
 
program. Lotus, Lotus Notes, and SmartSuite are registered trademarks         
 
of Lotus Development Corporation.  Notes, InterNotes, and InterNotes          
 
Web Publisher are trademarks of Lotus Development Corporation.                
 
cc:Mail is a registered trademark of cc:Mail, Inc., a wholly owned            
 
subsidiary of Lotus Development Corp.  All other company names and            
 
products are trademarks or registered trademarks of their respective          
 
companies.                                                                    
 
                                                                              
 
Please Note:                                                                  
 
Questions about the content or currency of this press release                 
 
should be directed to your local IBM representative.