AT&T and IBM Unite to Deliver E-business Solutions to Small- and Mid-sized Businesses; IBM Technologies Powered by AT&T Connectivity Creates New Benchmark for Internet Solutions

Business Wire, Oct 6, 1999

NEW YORK--(BUSINESS WIRE)--Oct. 6, 1999--

AT&T and IBM today announced a technology alliance to jointly develop, market and distribute end-to-end e-business solutions for small- and mid-sized businesses.

The solutions will be delivered through IBM and AT&T joint channel partners and will include IBM software, a choice of IBM servers and managed Internet connectivity provided by AT&T.

The relationship brings together the two companies' networking and technology experience to create comprehensive, scalable Internet solutions. IBM and AT&T will support an integrated distribution channel to help the growing number of small- and mid-sized businesses to build an Internet presence. According to Cahners In-Stat, small businesses will increase their IT spending from $39 billion in 1998 to $87 billion in 2002, and the number of small businesses implementing e-commerce solutions (44%) actually exceeds that of large businesses (36%).

The first set of solutions being made available under the alliance provides customers with the IBM e-business Start Now solution software, an IBM Netfinity(a), AS/400(a) or RS/6000(a) server and IBM's Business Partner customization services. AT&T will provide Internet connectivity through its Managed Internet Access Service.

The initiative is designed to reduce the complexity of developing customized solutions to support e-business. The turnkey solution will enable customers to create a Web site and develop an electronic catalog with secure e-commerce capabilities. This "out-of-the-box," simplified implementation enables Business Partners to provide an affordable, scalable and extendable solution at a starting target of $35,000, plus Internet connectivity fees. Customers may also opt for a lease arrangement with IBM Global Financing for a monthly cost of less than $2,000. The solution is currently available in the United States.

AT&T's Managed Internet Service gives customers premier Internet access without the burden of network management. AT&T manages the customer's "end-to-end" Internet connectivity at speeds of 56 Kbps through 155 Mbs. Also included in the service are:

-- CPE lease, management, monitoring, and maintenance;

-- packet filtering;

-- primary and secondary domain name system administration;

-- network newsfeed; and

-- network usage reports.

"IBM studies show that small and medium businesses are looking for convenience, cost-effectiveness and vendor confidence when they choose an e-business solution," said Jim Corgel, general manager of Internet Service Provider Industry, IBM Global Industries. "IBM and AT&T are combining our vast resources to meet those needs while giving our distributors a reliable and easy to implement e-business solution."

Keith Olsen, vice president of Global Channel Management for AT&T, added, "Selecting a technology partner to help businesses manage the complexity of their Internet storefronts just got easier. AT&T's unmatched network scale and scope, combined with IBM's hardware and software, enables businesses to leverage the competencies of two industry leaders."

The first distributor to deliver the IBM/AT&T solution is Savoir Technology Group, Inc., a leading IBM midrange systems distributor based on San Antonio, Texas. Savoir is offering its Solution Providers training and technical support to ensure success with the initiative. BMC Solutions, Inc., a Savoir Solution Provider, has already seen a keen interest in the IBM/AT&T offering.

"Growing companies often have to divert precious resources from their core businesses to tackle complex Internet technologies and multiple vendors. By making its Business Partners the single point of contact with the customer, and offering a comprehensive, brand name solution, IBM and AT&T are delivering an attractive and cost-effective way to help companies set up shop on the Internet," said Donus Sroufe, Executive Vice President, BMC Solutions. BMC recently implemented wide-area, thin-client access for Holston Companies, Environmental Services. The solution, which gave Holston's sales team remote office access, included IBM's AS/400 and Netfinity servers along with AT&T connection services.

About AT&T

AT&T Corp. (http://www.ipservices.att.com/) is among the premier voice and data communications companies, serving more than 80 million customers, including consumers, businesses and governments. With annual revenues of more than $53 billion and 149,000 employees, AT&T provides services to customers worldwide. Backed by the research and development capabilities of AT&T Labs, the company runs the world's largest, most sophisticated communications network and has the largest digital wireless network in North America. The company is a leading supplier of data and Internet services for businesses and offers outsourcing, consulting and networking-integration to large businesses. It is also the nation's largest direct Internet access service for consumers. Through its recent cable acquisitions, AT&T will bring its bundle of broadband video, voice and data services to customers throughout the United States. Internationally, the AT&T/BT Global Venture will serve the communications needs of multinational companies and international carriers worldwide.