Cable & Wireless and Compaq join forces to deliver global e-business solutions

Cable & Wireless plc and Compaq Computer Corporation today announced their intention to form a groundbreaking global relationship which firmly positions Cable & Wireless as a leading Application Service Provider (ASP) and Compaq as a premier provider of enabling technology and services.

Cable & Wireless, enabled by Compaq, will be the first global provider to offer small and medium sized enterprises complete end-to-end e-business solutions, from Internet access devices to hosted business applications. Forrester Research predicts that the market for these services will grow to $10.1 billion by 2001.

The two companies plan to commit a total of $500 million over the next five years to the relationship. Compaq`s participation includes revenue-sharing and traditional supplier contracts.

In the traditional Application Service Provider (ASP) model an end user pays a monthly fee to gain access over a network connection to an application that resides in a remote datacenter. Typically ASPs have only offered one or two components of the total solution, leaving end users the problem of sourcing and integrating solutions from multiple vendors. Cable & Wireless, supported by Compaq, plans to expand the market by providing a complete end-to-end integrated solution including:

• Leading application software hosted in secure Cable & Wireless application hosting centers running on Compaq platforms

• Cable & Wireless state-of-the-art Internet Protocol (IP) network connectivity

• Next generation Compaq client access devices, from PCs to wireless handheld devices

• Compaq NonStopTM eBusiness consulting and professional services

• Global 24x7 multilingual help desk support for all applications, platforms and network services under a single service level agreement

"We are bringing together Cable & Wireless` leading global IP network and hosting infrastructure with Compaq`s strengths in technology and professional services," said Graham Wallace, Group Chief Executive, Cable & Wireless. "This move reinforces our strategy to provide business customers with IP solutions that create real competitive advantage."

"This relationship with Cable & Wireless is an important step in the execution of Compaq`s strategy," said Michael Capellas , president and chief executive officer, Compaq Computer Corporation. "This relationship advances each of the three key elements of our strategy: creating the NonStopTM eBusiness environment that enables our customers to operate 24x7; expanding our industry leading partnerships; and redefining Internet access with innovative products and services. We are aggressively pursuing our goals to be the number one provider of NonStopTM eBusiness solutions and the premier global enabler to Service Providers. Creating a powerful alliance combining Cable & Wireless` strengths as a global IP leader with our Internet leadership is a tremendous advantage for our customers and a major step toward achieving our goals."

Cable & Wireless will further develop its global application hosting centers to provide the additional capacity to support the applications and will build its skill base of specialist IP and applications management personnel. Compaq will provide server platforms and storage architecture, systems integration and managed services, and skilled personnel for the application hosting centres and associated operational support systems (OSS). Cable & Wireless and Compaq will develop selected channels to market and sell the new services. Both companies will leverage relationships with independent software vendors (ISVs) to enhance solution offerings. The new relationship will offer solutions from 1 January 2000, initially serving customers across the UK, Europe and US. Further expansion is planned across Asia Pacific during the following 12 months.

Customers will initially benefit from packaged eBusiness services including:

• Rapid deployment of business-to-business and business-to-consumer e-commerce solutions such as e-procurement and the hosting of digital market places

• Business process automation providing customers with access to applications such as unified messaging, sales force automation, and office productivity solutions

• Remotely managed network computing services for desktops and servers, associated software, and local and wide area networks

• IP based communications, offering secure end-to-end connectivity solutions such as IP-VPNs (Internet Protocol-Virtual Private Network) and Voice-over-IP services

• Services for the distribution and management of information such as video streaming and device-to-device videoconferencing

Infrastructure will also be provided for application hosting, including network and communications services, for companies who want to host their own software solutions, such as mobile service operators, other applications service providers, independent software providers and `.com` companies. Customers will benefit from more efficient business processes, access to a wide range of innovative business applications, a lower capital investment and total cost of ownership, and rapid deployment times. In many cases the applications will be tailored to meet customer`s specific needs and integrated with existing business processes and applications.