Compaq Advances CTI Strategy with AltiGen Partnership - computer telephony integration, AltiGen Communications - Company Business and Marketing

Cambridge Telcom Report, August 16, 1999

Reinforcing its commitment to extend industry-standard technology to the computer telephony integration (CTI) market, Compaq Computer Corporation (NYSE:CPQ) announced an important sales and marketing alliance with Fremont, Calif.-based AltiGen Communications Inc., a leading provider of LAN- and IP-based computer telephony solutions.

Compaq teamed with AltiGen to announce a powerful server-based PBX and voice-over-IP (VoIP) solution based on Microsoft Windows NT Server. The solution will feature AltiGen's popular AltiServ all-in-one PBX system running on Compaq's industry-leading Windows NT Server-based systems such as Compaq ProLiant and Compaq ProSignia. Increasingly, customers are preferring industry-standard, server-based PBX solutions over costly, single purpose, proprietary PBX systems.

The announcement was made to more than 1,500 channel partners at Compaq's PartnerVision conference in Chicago.

Ray Villareal, vice president and general manager, Compaq Enterprise Solutions and Services Group, North America, said, "Compaq intends to stake out a leadership position as the preferred business partner for the fast-growing computer telephony market. For customers, our value proposition is clear: Compaq's advanced, industry-standard technology plus innovative solutions from market leaders like AltiGen and aggressive channel programs all result in the most complete, most flexible, cost-effective and fully featured solutions available today."

Villareal added, "Given the Internet-readiness and VoIP functionality of the AltiServ solution along with Compaq NonStop eBusiness expertise, customers will be able to leverage their investment as they move forward with Internet-based features."

The solution is available immediately. Pricing varies depending on the configuration, but a complete, integrated entry-level system will begin at $8,400.

Service and support of the solution will be provided by existing Compaq and Altigen service partners and programs.

Customers Move from Proprietary Machines to Standard Server-based Solutions Targeted at small-to-medium size businesses and enterprise branches of up to 150 people, the AltiServ system provides customers with a fully featured server-based PBX that is low cost, flexible and highly scalable. Compaq and AltiGen anticipate that the AltiServ solution will help lead the market trend away from costly legacy PBX systems that limit a business's productivity and competitiveness.

The ProLiant server-based AltiServ solution includes key features that customers look for in their business communications networks. In addition to basic features such as phone, corporate-strength voicemail, auto attendant and basic automatic call distribution (ACD), AltiServ also provides more advanced functionality such as VoIP gateway, extensive "follow me" features, client call control, Internet integration and unified messaging with support for Microsoft Exchange.

Michele Shannon, vice president of sales for AltiGen, said, "AltiGen is pleased to partner with Compaq in this fast growing market. The combination of AltiGen's time-tested, feature rich telecommunications solution and Compaq's highly reliable Windows NT Server-based systems provides customers with faster deployment, reduced risk and highest reliability." Shannon continued, "Together, our two companies can help customers meet their business communications needs today -- and well into the next millennium."

"Both Compaq and AltiGen lead their respective markets with proven and complete products," said Joe Serra, director of Tech Data's Computer Telephony Division. "We anticipate exponential growth as a result of the teaming of these industry leaders, adding to the thousands of businesses that already use Compaq and AltiGen products."

Ingram Micro Inc. agrees. "Together, AltiGen and Compaq are providing a solution based on completely open industry standards. The two companies will lead the way to leveraging the expertise of the reseller community to provide customers with all-in-one telecom servers at affordable prices. Compaq's commitment to support the rapidly growing server-based PBX market is sure to have a positive impact."

Microsoft Support Enhances AltiServ's Open Platform AltiGen and Microsoft Corp. have enhanced AltiServ with support for Microsoft Windows TAPI (Telephony Application Programming Interface), COM (Component Object Model) technology, and DCOM (Distributed Component Object Model) technology and Microsoft Exchange Server -- all of which run on Microsoft Windows NT Server. Through support of Microsoft's industry standards such as these, AltiServ's open platform allows users to integrate third-party applications quickly and easily. AltiGen is currently working with Microsoft to ensure even greater integration for AltiServ within Windows 2000.

"Many of the same forces of innovation, customer choice and value that have driven change in computing are now shaping telephony," said Keith White, director of Marketing for the Business and Enterprise Division at Microsoft. "Windows NT has emerged as the software platform of choice in this new era of communications, and the combination of industry leaders Compaq and AltiGen will undoubtedly accelerate this movement while benefiting customers, channels, and developers."