A highbrow brew: Cisco teams with Microsoft, IBM

Advancing the premise that the computer is the network, Cisco Systems has teamed with Microsoft to better enable application service providers to deliver outsourced applications and services for medium-sized businesses. The companies will jointly market their infrastructure and support expertise to ASPs.

"By leveraging the strengths of both [companies], we saw the opportunity to take a leadership position in the ASP market," a Microsoft spokeswoman said.

Cisco and Microsoft have formed alliances with Data Return, Digex, FutureLink, Interliant, Qwest Cyber.Solutions, The Taylor Group and USinternetworking for hosting application solutions on Cisco's intelligent network infrastructure and Microsoft's Windows NT Server operating system.

"We already made a strong move into the market with [Hewlett-Packard] and Oracle. The fact that we got involved with Microsoft and Cisco was a natural extension of our business," said a Qwest Cyber.Solutions spokesman. Cyber.Solutions uses Cisco's gigabit routing switches but also uses Nortel Networks for some optic solutions, he said.

The Microsoft/Cisco partnership focuses on bringing three application services to market with the help of three software vendors. Great Plains Software will deliver a business and financial management solution, while Clarus provides a Web purchasing solution, and Pivotal contributes a relationship management package. The sales program will be implemented in two phases. The first is primarily a direct marketing campaign by Microsoft focused on enterprise customers seeking commerce-enabled Web sites. Phase two will include the three new software solutions. ASPs currently offer Microsoft SQL Server 7.0 database and Site Server Commerce Edition and Cisco networking solutions on the Windows NT Server platform.

"We will continue to add more partners throughout the next several months and will begin requiring certification in order to participate," the Microsoft spokeswoman said.

Cisco and Microsoft have developed a deployment kit for ASPs wanting to offer end-to-end hosting solutions. It includes a technical white paper, a customizable sales presentation, a customer demo and an integrated software and hardware configuration and installation guide.

Data Return is using the deployment kit. "Customers are interested in acquiring products in a hosted model. They don't want to take on a major investment, so they look to us for deployment," said Todd Steitle, vice president of marketing at Data Return. "We are experts in deploying applications. We configure, ship and manage Cisco's routers for our customers."

The joint marketing agreement came one week after Cisco announced plans to work with IBM and interested ASPs to build and test high-quality hosted applications in Cisco's hosted application lab. IBM will contribute development platforms and personnel to work with Cisco and participating ASPs to test e-business applications. Together, these efforts build on Cisco's hosted application initiative rolled out in April, which exploited its virtual private networking capabilities to target businesses of all sizes.

This joint testing and development initiative gives software developers a multiserver platform environment and ensures the final product has been thoroughly tested by both Cisco and Microsoft.

Also last week, Cisco announced the integration of its IP/TV streaming video solution with Microsoft's Windows Media platform. Windows Media allows Cisco to deliver synchronized Web pages with audio and video tracks for multimedia presentations. The companies also will target IP/TV to small and medium-sized businesses for solutions in distance learning and corporate communications.

Before this integration, the streaming video platform consisted of Windows NT running in a common media player format, a Microsoft spokesman said. This integration provides higher streaming video while using less bandwidth.