Business Class IP Service Maximizes Use of Frame Relay, ATM and IP to Enable E-Business
LAS VEGAS (May 8, 2000) - WorldCom, Inc. [NASDAQ: WCOM] and Cisco Systems, Inc. [NASDAQ: CSCO] today announced that the two companies have jointly created a new network service that will bring together all the necessary elements for supporting e-business applications within one company or between many companies. WorldCom's Business Class IP Service will offer highly scalable and reliable private any-to-any connectivity and will ultimately support Web, application, and content hosting - whether solely for a single business or for an entire business community.
"Business Class IP can leverage our customers' existing network investments and empower a new generation of IP applications," said Jim DeMerlis, WorldCom vice president of Data and Enterprise Product Marketing. "This is one of the first, scalable network-based IP VPNs to support business-to-business applications with any-to-any networking. Working with Cisco, we have developed a service that will enable customers to add new business process functionality into their networks, like enterprise resource planning (ERP), while also serving as a platform for business-to-business e-commerce like supply chain management."
The new Business Class IP Service is a core component of WorldCom's previously announced "generation d" initiative, under which the company is expanding its network and transport services to deliver a broad range of new value-added e-business solutions. This network-based service will be integrated within the company's existing global frame relay and ATM infrastructure. Using Cisco's MGX 8850 and BPX 8650 IP+ATM multiservice switches, customers will be able to leverage WorldCom's intelligent network without having to purchase new customer premises equipment.
"We are excited to be working with WorldCom to build this new network, which realizes our shared vision of New World services," said Kevin Kennedy, senior vice president of Cisco's service provider line of business. "Our IP+ATM switches have emerged as the platform of choice for carriers who need to IP-enable their transport services and offer an on-ramp to New World IP services. By combining our service capabilities, management, reliability, and flexibility we are delivering a complete solution unmatched in the industry."
WorldCom's Business Class IP Service will take intranets and extranets to the next level and will provide evolutionary improvements for existing frame relay and ATM users. With Business Class IP Service, based on Cisco's industry-leading implementation of Multi Protocol Label Switching (MPLS), WorldCom will be able to build network-based IP intranets and extranets. Customers will be able to utilize their current ATM and frame relay connections for access without having to modify their existing applications. When the service becomes available, these connections can easily become enabled for Internet access utilizing WorldCom's premier Internet backbone.
WorldCom will offer managed, secure, IP connectivity at significant savings from the real cost of building and operating a private VPN today. Small and medium businesses, previously disenfranchised due to high connectivity costs and the need for management staff, can now purchase affordable, "plug-and-play" connectivity. This service will be available throughout WorldCom's global facilities-based infrastructure.
"WorldCom has taken the next step in VPN services to deliver a true IP solution across data platforms," said Eric Hinden, vice president, The Yankee Group. "By combining private, any-to-any networking with application and content services in an affordable managed package, WorldCom is making it easy for their customers to profit from new business-to-business network opportunities."
