Microsoft and USinternetworking Inc. Form Strategic Partnership

Strategic Insights -

Microsoft Corp. and USinternetworking Inc. (USi) are joining forces to develop, deliver, and market managed applications services built on the Windows 2000 and .NET platforms. As part of the deal, Microsoft will invest $50 million in USi to fuel its continued growth. The partnership will leverage USi's Microsoft Exchange-based messaging and collaboration service, and the two companies will jointly commit to delivering enterprise line-of-business applications, commerce services, and managed infrastructure services.

Key Takeaways:

  • Microsoft will invest $50 million in USi to fuel its continued growth.
  • The partnership will leverage USi's Microsoft Exchange-based messaging and collaboration service.
  • The two companies will jointly commit to delivering enterprise line-of-business applications, commerce services, and managed infrastructure services.
  • USi will make Microsoft's technology platform the primary platform for all of its iMAP product offerings.
  • Microsoft will provide USi with "substantial" engineering and technical support to launch the new marketing offerings and migrate existing service offerings to the Microsoft Platform.
  • The two groups will start "extensive" joint marketing and sales initiatives to promote USi offerings to targeted customers beginning next February.
  • USi and Aether Systems will jointly develop and deliver wireless-enabled managed application services to the enterprise market.
  • Aether will make a $10 million equity investment in USi.
  • The funding will be used to support the ongoing growth of USi.
  • USi has inked commitments for more than $300 million in equity and commercial credit facilities from investors and lenders.

Statistics:

  • Microsoft will invest $50 million in USi.
  • The partnership will leverage USi's Microsoft Exchange-based messaging and collaboration service.
  • USi will make Microsoft's technology platform the primary platform for all of its iMAP product offerings.
  • Aether will make a $10 million equity investment in USi.
  • The funding will be used to support the ongoing growth of USi.
  • USi has inked commitments for more than $300 million in equity and commercial credit facilities from investors and lenders.

Sources:

  • Washtech.com, Report of the partnership between Microsoft and USinternetworking Inc.
  • Wires Online, Telecom, Business, Report of the partnership between Microsoft and USinternetworking Inc. (20001114)