WorldCom Teams With Cisco To Deliver Business-To-Business Network Service
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."
About Cisco Systems
Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in
networking for the Internet. News and information are available at
http://www.cisco.com.
About WorldCom
WorldCom (NASDAQ: WCOM) is a global leader in
"all-distance" communications services with operations in
more than 65 countries. Revenues in 1999 were $37 billion, with more
than $15 billion from high-growth data, Internet and international
services. WorldCom and Sprint have announced a merger agreement, which
the companies expect to close in the second half of 2000 after
regulatory and shareholder approvals. For more information go to
http://www.wcom.com.