Cisco Systems Extends Cisco Powered Network Program to Application Infrastructure Providers - Company Business and Marketing

Cambridge Telcom Report, May 1, 2000

Cisco Systems, Inc. Monday announced the extension of its Cisco Powered Network program to the Application Infrastructure Provider (AIP) market. The new designation will allow AIPs to provide differentiated service offerings to their Application Service Provider (ASP) customers by creating a high performance, reliable and secure integrated technology infrastructure for the management of multiple hosted applications. Cisco Monday also announced that Digex, Data Return and Exenet Technologies are the first AIPs to receive the Cisco Powered Network designation.

The extension to the Cisco Powered Network program is a second for Cisco targeted primarily at the hosted applications market. Earlier, Cisco launched a Cisco Powered Network ASP designation in September 1999. The two designations show Cisco's continued commitment to the ASP ecosystem as part of the Cisco Hosted Applications Initiative. Cisco's initiative provides businesses of all sizes with access to powerful applications that were previously beyond their reach and creates an emerging ecosystem of software application vendors, application service providers, internet service providers, co-location providers, system integrators, and technology partners to deliver a variety of hosted business applications.

"Cisco's focus on enabling the ASP marketplace has been instrumental in the validation and continued development of this industry. By extending the Cisco Powered Network program to AIPs, the company hopes to empower ASPs with end-to-end reliability and performance, and more importantly, higher levels of service," said Kneko Burney, Director, Markets and Computing at Cahners In-Stat Group. "Cisco's comprehensive strategies in the ASP market have certainly paid off, as the firm was the highest rated vendor among 100 ASPs surveyed regarding their infrastructure requirements, suggesting Cisco is a powerful brand in the ASP community."

True to the value of the hosted model, and due to the complexities and cost of building their own networks, many ASPs will want to outsource their requirements and AIPs offer them a one-stop shop in meeting these needs. Using an AIP that provides not only web hosting and co-location services, but also data center facilities and bandwidth services, allows the Application Service Provider to focus on their core competency-- the development, sales, marketing and customization of their applications. An AIP whose service has been Cisco Powered Network designated will enable ASPs in turn to ensure the high-availability, security and predictability of their business applications performance to end customers by assuming complex network integration, service level agreement and management functions.

"By extending the Cisco Powered Network program initially to ASPs and today to AIPs, Cisco is raising the bar for the delivery of quality hosted applications services," said Eugene Lee, vice president of marketing for Cisco's Applications Technology Group. "We are creating an end-to-end, service-driven model that allows each AIP and ASP to focus on its core competencies delivering best-of-class, end-to-end solutions and services to customers seeking to expand into new world e-business opportunities."

Achieving Cisco Powered Network Designation For many ASPs, the complexities and cost of building their own data centers and networks to deliver wide-scale application hosting is a challenge. Outsourcing data center and network connectivity to an AIP whose service has been Cisco Powered Network designated ensures the reliable, secure, and predictable performance and delivery of their hosted applications.

For a service to be Cisco Powered Network designated, an AIP must undergo a complete assessment of their end-to-end network architecture based on Cisco's data center, Wide Area Network (WAN), `Last Mile' and Customer Premise Equipment (CPE) solutions. The Cisco Hosted Applications Lab is used to verify that this architecture is well integrated to meet a unified and unique platform that addresses the performance and availability requirements of the AIP's end-to-end application delivery infrastructure. Cisco Powered Network designated AIPs are committed to maintaining high levels of network quality by building their services with Cisco solutions and will then be authorized to use the Cisco Powered Network brand logo and will have access to joint marketing programs and promotions.

Cisco Powered Network services give customers all the benefits of an end-to-end network; simplified, cost-effective network management; higher network availability; more reliable, scalable and secure services; and faster deployment of new world network services. Currently, there are 300 large service providers around the world that are members of the Cisco Powered Network program. Situated in more than 34 countries, program members offer a wide range of Cisco-based services for businesses of all sizes.

Digex, Data Return and Exenet Technologies are the first three AIPs to receive the Cisco Powered Network designation.