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GE Information Services and WorldCom Ink Long-Term Alliance

Strategic Insights

— 1 min read

GE Information Services Inc (GEIS) has entered into a long-term alliance with WorldCom Inc to manage the network transport operations of its global electronic commerce and data interchange networks. The agreement, which spans five years, aims to increase GEIS's global points of presence by 300% and provide seamless integration of their international networks. The partnership is seen as a strategic move by GEIS to expand its global reach and reduce the complexity of working with multiple telecom companies.

Key Takeaways:

  • GEIS has outsourced its network transport operations to WorldCom, marking the beginning of a long-term alliance between the two companies.
  • The agreement covers a phased integration of GEIS and WorldCom's global networks over a five-year period.
  • GEIS will continue to provide valued-added network engineering, monitoring, and management services to its customers.
  • The partnership aims to triple the number of GEIS's global points of presence, providing access to new dial-up access points in 658 cities and 104 new frame relay sites.
  • WorldCom will take over the operation of all of GEIS's network operations, including management "super-centers" in Rockville, Md., Cleveland, Amsterdam, and Hong Kong.
  • WorldCom's infrastructure investment plans, totaling $2.9 billion in 1998, were a major factor in GEIS's decision to partner with the company.
  • GEIS has praised WorldCom's strategy of deploying infrastructure technology suited to future Internet protocol (IP) traffic requirements, which aligns with its own focus on E-commerce applications.

Statistics:

  • GEIS's global points of presence are expected to increase by 300% with the agreement.
  • WorldCom's infrastructure investment plans totaled $2.9 billion in 1998 alone.
  • GEIS's global network is supported by four network management "super-centers" in Rockville, Md., Cleveland, Amsterdam, and Hong Kong.
  • The agreement with WorldCom will triple the number of GEIS's global points of presence.
  • GEIS has 90,000 trading partners in its global electronic community.
  • WorldCom will manage "hundreds of millions of electronic commerce transactions" as part of the agreement.

Sources:

  • [GE Information Services Inc (GEIS) spokesman](no date)
  • [GEIS spokeswoman](no date)
  • [Background statement by GEIS](no date)
  • [TR, March 30](no date)

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