Infrastructure Replacement a Major Issue for Global and Internet-Based Businesses

Compaq Computer Corporation today signalled its intent to take the lead with global and Internet-based businesses by offering next generation network infrastructure consulting and integration services. These capabilities will be focussed on helping enterprise and public network customers exploit new Internet applications and address exploding bandwidth needs through fast, adaptive networks. Customers require next generation networks to simplify and enable the implementation of new, bandwidth-intensive Internet applications such as video conferencing, collaboration, unified messaging, voice over IP, distance learning, e-commerce and e-tainment.

Compaq`s next generation network initiative supports the company`s broader vision for the future of the Internet-connected enterprise, in which communities of enterprises, customers, partners, suppliers and others conduct commerce in a constantly changing global online business ecosystem. Enabled by a broad portfolio of newly mature technologies, the global online business ecosystem will be characterised by a loose federation of corporations whose products, services, and processes are virtually connected across organisational boundaries.

For many enterprises, an obsolete network infrastructure is the greatest impediment to implementing the latest technologies. Compaq`s new IT services are designed to reduce the uncertainty spurred by rapid technological developments, and help enterprises plan, design and deploy IT infrastructures that meet the speed, bandwidth and adaptability requirements of Internet applications.

"The integration of the online business ecosystem is a complex undertaking that virtually every business will experience," said Eckhard Pfeiffer, president and CEO of Compaq Computer Corporation. "The network integration capabilities we are announcing today demonstrate our commitment to being a trusted advisor helping enterprise customers worldwide through these dramatic shifts - by adapting their network infrastructures to thrive in an Internet-driven world."

Exploding Demand for Next Generation Networks

Next generation networks represent the convergence of multiple networks, including voice, data and video into one efficient, reliable IP-based network stretching from the enterprise to the public network to the home. In addition, these adaptive networks reduce network management costs, are more easily scaled, provide a faster path to market and, ultimately, improve communications.

The next ten years will see billions of dollars invested to plan, re-engineer and rebuild today`s obsolete enterprise and public networks to handle exploding volumes of data traffic. The Yankee Group( estimates that the overall market for network integration services will grow to $52.7 billion in 2001 from $29.6 billion in 1997. When deployed, the new networks will be able to handle traffic volumes projected by McQuillan Consulting to increase from 25 percent of all network traffic today to more than 95 percent in 2003.

Leveraging Partnerships

"The network is the heart of the new enterprise," said John Rando, senior vice president and group general manager, Compaq Services. "Our experience and industry partnerships place Compaq in a unique position within the IT market, and give customers unprecedented choice and confidence in the architecture and deployment of their network computing infrastructures. Our customers can capitalise on our experience and expertise as we help them rapidly transform and integrate new business processes while protecting their current and future IT investments."

In addition to building on its own broad experience in Internet, intranet, and extranet products and IT services, Compaq will broaden its portfolio of industry-leading partnerships to provide customers with greater choice and faster deployment of specific applications and infrastructure solutions. Compaq`s newest service partnerships include BMC Software, Entrust Technologies, NetScout, Nortel Networks, PictureTel and Tivoli. They join existing service partners Ascend, CheckPoint Software Technologies Ltd., Cisco Systems, Computer Associates, Ericsson, Frontier Communications, Genesys, Kenan Systems Corporation, Microsoft Corporation, and VocalTec Communications.

Recent examples of Compaq`s network integration leadership in Europe and around the world include successful network infrastructure projects at SAS (Servicio Andaluz de la Salud - the public healthcare organisation of southern Spain), Microsoft Corporation`s Microsoft Network (MSN), the U.S. Department of Veterans Affairs, State of New Hampshire Liquor Commission, Frontier Communications, State of California and the United States Postal Service.

SAS expects to dramatically improve patient care with a next generation network linking 30,000 users in 32 hospitals, including 7,000 doctors and nurses, as well as 3,000 trainee healthcare professionals in 52 healthcare districts, 48 special auxiliary centres, and eight administrative centres across Andalucia.

According to Jose Antonio Cobena, CIO and COO of SAS, "Our intranet, as designed by Compaq Services, will be one of the largest in Europe, dramatically improving the quality of services we can offer the eight million citizens of Southern Spain. We selected Compaq because we have confidence in their experience, their creativity in defining added value applications, the quality and skills of their people, and their ability to get this project done quickly and with the high quality level that our internal and external users require."

Three Waves of New Next Generation Services to be Introduced this Year

Compaq`s innovative consulting and integration services are designed to help customers transform their network architectures to enable rapid, secure and flexible deployment of Internet applications. More specifically, Compaq and its partners will focus on the four layers of network architecture that are most critical to achieving those objectives: Internet network services; network transport; management; and security. Available immediately worldwide for enterprise customers, the new services include:

• Next Generation Networks CIO Workshop

• Next Generation Network Audit, Baselining and Assessment Services

• Directory Enabled Networks

• Planning and Implementation Services for Microsoft Site Server

• Unified Messaging

• Voice over IP Pilot Service

• Video Conferencing and Collaboration Solutions

Compaq also offers FutureSourcingsm services to develop, deploy, and manage next generation network infrastructures on a custom basis, including end-to-end Internet infrastructure management, security management, e-commerce management, and application management.

Complementing these services is Compaq`s complete portfolio of high availability services designed to ensure the uninterrupted availability of an organisation`s business-critical computing environment. Compaq`s unique, proactive and holistic approach to high availability involves a partnership and shared risk with the customer.

The service offerings announced today will be followed by two additional waves of new next generation network infrastructure service offerings later this year. Compaq will add to its services for public network and telecom service providers, and will introduce next generation network services designed for channel partners to deliver to small and medium-size (SMB) businesses. Additional information on Compaq`s next generation networks initiative is available at www.compaq.com/services/ngni.