SBC Communications Unveils Comprehensive E-Business Strategy and Infrastructure

Strategic Insights -

SBC Communications, a leading global communications leader, has announced a range of new and enhanced e-business agreements and offerings that position the company to provide customers with a full range of New Economy infrastructure and services. Building on SBC's $6 billion Project Pronto network transformation project and its acquisition of Sterling Commerce, a leading worldwide provider of e-business solutions, the company has unveiled a comprehensive e-business strategy that addresses all levels of customer needs, from broadband access and transport to e-business consulting and web and applications hosting.

Key Takeaways:

  • SBC has invested in its first Internet Data Center, powered by Cisco Systems Inc. service provider networking solutions, which will support expanded dedicated and shared web hosting, enable SBC to provide server colocation services, and provide a physical environment for hosting enterprise applications.
  • SBC has acquired a controlling interest in InQuent Inc., the parent company of WebHosting.com, a leading hosting services provider, for over $100 million.
  • SBC will use its data center and web hosting capabilities to support the rollout of a series of Application Service Provider (ASP) and applications hosting offerings, including hosted Microsoft Exchange 2000 and hosted e-commerce applications.
  • SBC will collaborate with Commerce One Inc. to provide businesses worldwide with comprehensive e-marketplace solutions through a strategic e-business alliance.
  • SBC will work with Deloitte Consulting LLC and Proxicom Inc. to provide seamless integration of e-business services that help customers mainstream e-commerce into their businesses.
  • SBC's goal as an ASP is to provide customers with an entire turnkey solution, including network services, a hosting platform, and applications and consultation, all for a single monthly fee.

Statistics:

  • SBC's total data revenues increased 38.2 percent in the second quarter to $1.8 billion.
  • Revenues from applications and datcomm services, including network integration and e-business services, grew 50.5 percent.
  • SBC has invested $6 billion in its Project Pronto network transformation project.
  • SBC has acquired Sterling Commerce, a leading worldwide provider of e-business solutions, for nearly $4 billion.
  • SBC's Internet Data Center will open on July 31 in Dallas, with additional locations to be added as customer demand warrants.

Sources:

  • SBC Communications, "SBC Communications Announces Range of E-Business Agreements and Offerings to Fuel Customer Growth" (no date).
  • Business Wire, "SBC Communications Announces $6 Billion Project Pronto; Sterling Commerce Acquisition" (no date).
  • EDGAR Online, "SBC Communications Inc. - 10-Q for Q2 2000" (Aug 10, 2000).
  • SBC Communications, "About SBC Communications" (no date).