Networking Leader and Service Providers Team to Deliver Internet Solutions for Small and Growing Business Market
- More Information about Cisco's Hosted Application Initiative
- Related Release: Cisco Connects Industry for Internet Business Applications
- Related Release: Cisco and Software Vendors Team Up
SAN JOSE, Calif. -- April 26, 1999 -- Cisco Systems, Inc. today announced alliances with leading service providers to host and deliver sophisticated business applications to small and medium-sized businesses over the Internet as part of the recently announced Cisco Hosted Applications Initiative.
Many small and medium-sized businesses do not have the financial and technical resources to deploy sophisticated applications internally. Internet hosted applications give businesses access to these applications without the responsibilities of building and managing an internal support infrastructure. Cisco's industry-leading architectures, combined with Cisco IOS. software, enable service providers to maximize the Internet or their IP infrastructure for powerful hosted application solutions. Hosted applications open a New World business opportunity for service providers to broaden their service portfolio to differentiate their business, increase profitability, and build customer loyalty.
A rapidly evolving service, hosted and outsourced applications are offered by service providers as an alternative to customer-deployed applications. Organizations typically contract with a service provider on a subscription basis based on the number of users and types of applications needed. Businesses can focus on their core competencies, freed from the capital investment, upgrade and ongoing management costs, while achieving 24x7 reliability, service and support.
"The Hosted Application Initiative recognizes the New World of communications and aligns with Cisco's strategic direction of products and technologies that place it at the forefront of the Internet economy" said Larry Lang, vice president, service provider marketing at Cisco. "Hosted applications allow service providers to partner with their business customers and move up the value chain while enabling businesses to enjoy applications that were previously unavailable to them."
Internet hosted applications can be offered in a number of ways through different types of providers and through different delivery mechanisms. Service providers host and manage business applications at their site and deliver access to end user customers remotely over the Internet or their IP infrastructure. Applications may also be hosted at third-party co-location facilities. "USi and Cisco share a common vision about the strategic value of the Internet to growing companies," said Christopher R. McCleary, chairman and CEO of USinternetworking. "By combining Cisco's end-to-end networking solution with USi's rapid implementation, application management, and 24x7 client support, midmarket businesses benefit from powerful applications that otherwise would be beyond their reach."
"Co-location offers our customers a key advantage in enabling our customers to meet their end users applications needs without draining their internal resources," said Ellen M. Hancock, president and CEO of Exodus Communications. "And as a Cisco Powered Network, reliable, secure access to those applications is assured."
"As an emerging leader in the application service provider (ASP) market, we offer outsourced application management solutions that enable E-Commerce, Communications & Knowledge Management and Customer Relationship Management. We believe that the Internet provides a robust platform for business computing," said Bob Wise, COO, USWeb/CKS E-Services division. "The work Cisco is doing on their end-to-end intelligent Internet infrastructure will help to ensure that outsourcing applications over the Internet remains a reliable, cost-effective option for growing businesses. We depend on our Cisco-based network infrastructure to deliver highly reliable network services for clients who entrust us with some of their most mission-critical applications."
Other service providers and co-location facility providers participating in the Hosted Applications Initiative include AboveNet Communications, Breakaway Solutions, FutureLink, and PSINet.
Internet service providers, local exchange carriers, and inter-exchange carriers will also be providing application services. By offering these services, providers can add value and build new revenue streams for greater differentiation and profitability and naturally extend the partnership of outsourced services with their customers.
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