News Release

Cisco and Software Vendors Team Up

Networking Leader and Software Providers to Deliver Internet
Apr 26, 1999

Networking Leader and Software Providers to Deliver
Internet Solutions for Small and Growing Businesses

SAN JOSE, Calif. -- April 26, 1999 -- Cisco Systems, Inc. today announced alliances with leading software providers to enable hosted applications that allow small and medium-sized firms to take advantage of sophisticated business applications. As part of the Cisco Hosted Applications Initiative, applications will be hosted and made available through outsourcing agreements with third-party service providers.

Many small and medium-sized businesses do not have the financial and technical resources to deploy sophisticated applications internally. Hosted applications give businesses access to these applications without the responsibilities of building and managing an internal support infrastructure. Cisco, through its intelligent networks, provides the network infrastructure to optimize these hosted applications, delivering a complete solution to small and medium-sized businesses.

"By outsourcing the hosting and administration of applications, growing companies no longer need to build the infrastructure or hire and train a technical staff to implement and manage these applications, which translates to significant savings in cost and time," said Eugene Lee, Cisco vice president small/medium business marketing.

"This is the perfect marriage of powerful software applications and the intelligence, reliability, and security of Cisco Powered Networks," said Jim Krauter, vice president of Enron, a Cisco Powered Network service provider.

Among the application families already represented within the Hosted Applications Initiative are messaging, commerce, enterprise resource planning (ERP), front office/back office, and human resource software.

Electronic Messaging

An increasing number of service providers are seeking to fill the demand for electronic messaging services to businesses and consumers., a leading provider of messaging solutions and a participant in the Cisco Hosted Applications Initiative, is enabling service providers to more cost effectively provide messaging services through hosted application delivery. "The Internet is creating new opportunities for businesses to re-think and re-architect the way they support and deploy applications," said John MacFarlane, CEO of "Cisco's intelligent Internet infrastructure provides the proven foundation on which service providers can build networks to support new business customer populations, resulting in new revenue opportunities for service providers and reduced application deployment and management costs for businesses."


Commerce applications are increasingly essential for small and medium-sized businesses to compete and survive in today's global economy. The Hosted Applications Initiative includes several software providers offering commerce applications such as Broadvision, Hewlett Packard, and OpenMarket.

Enterprise Resource Management

Enterprise Resource Planning (ERP) applications have traditionally been employed by large corporations to improve and control the quality of service for crucial business functions such as financial transactions and payroll. Now, through hosted applications, small and medium-sized businesses can achieve the benefits of these same business-critical tools.

"Hosted applications provide us with a new distribution channel to reach customers previously beyond the range of our traditional markets," said Baer Tierkel, vice president of E-Business Strategy at PeopleSoft, Inc. "We see applications delivered as services as a key opportunity in the future of this industry."

Front Office/Back Office

Small and medium-sized organizations must manage their front office/back office business processes efficiently and cost-effectively. Through hosted applications, software providers like Great Plains can more easily provide critical software solutions to these firms. "The market was telling us how difficult it is for companies of all sizes to keep up with rapidly changing technologies," said Wayne Harding, vice president and General Manager of Great Plains Hosting Services. "The Application Service Provider model is a compelling deployment method for companies requiring sophisticated software, but lacking IT implementation and management resources.

Human Resources

Managing human resources has become a complicated and costly function for companies of all sizes. Applications that streamline the HR function are vital, particularly to small and medium-sized businesses. By leveraging Cisco's high-performance Internet end-to-end architecture, these businesses will now have easy and affordable access to applications that will help organize and simplify their administrative needs.

"By building the Employease Network from the ground up as a hosted application, we have put cost-effective, enterprise-class HR and benefits administration applications into the hands of even the smallest of businesses," said Michael Seckler, president of Employease, Inc.

Technology Partners

Cisco is also working with technology partners to provide a critical element in delivering on the promise of the intelligent Internet infrastructure enabled by Cisco. Citrix, for example, develops server-based computing technology enabling fast, reliable application access for extended enterprises. Other technology partners include Hewlett Packard and Sequent.

As part of the Hosted Applications Initiative, Cisco and participating software vendors have established a joint development lab that will match application vendors with application service providers to ensure that applications run efficiently across the intelligent Cisco Internet infrastructure.

Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO) is the worldwide leader in networking for the Internet.

# # #

Cisco, Cisco IOS, Cisco Systems and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and other countries. All other trademarks mentioned in this document are the property of their respective owners.