Networked for networking: Sprint announces partnership for IT implementation

As its interexchange carrier rivals progressively expand their managed services portfolios-see AT&T's recent acquisition of IBM's Global Network-Sprint has partnered with an enterprise network integrator and computer hardware distributor to bolster its own capabilities.

Sprint Paranet, the carrier's computer and data network managed services subsidiary, has teamed with Avnet Computer to broaden the range of information technology solutions it can offer to large and medium-sized enterprises. According to Sprint, the business customers in that category are seeking a one-stop shop that helps them organize, integrate and operate the various systems they require to meet their data networking needs.

"When they acquire technology, they generally have to work with several different companies," said Bill Pickard, vice president of sales and marketing at Sprint Paranet. "We're trying to simplify that for the end user. We call it 'one throat to choke.'"

In addition to bringing different capabilities to both parties involved, the partnership provides a customer "meld." Avnet's sales force will find opportunities while Sprint brings them in-house to determine what kind of services are needed, Pickard said. Avnet's existing customers will get access to Paranet's methods and its army of 1600 technical analysts to assist in their efforts to deploy managed WAN services, virtual private networks and Web hosting services.

"We viewed Sprint Paranet as a best-in-class technical services provider," said Jay O'Callaghan, director of marketing for Avnet. "This enables us to provide [information technology] assessment and fulfillment services to our middle market customers."

The first announced customer for the Paranet/Avnet partnership is SPSA, a behavioral health agency in Arizona that selected the two companies to provide LAN/WAN planning, voice- and data-over-IP implementation and Year 2000 readiness solutions.

This is an increasingly crucial and competitive time for carriers such as Sprint, particularly given MCI's managed services capabilities and the significantly improved facilities of AT&T now that it has IBM's Global Network in its coffer. In addition, Sprint is preparing to launch services based on its Integrated On-Demand Network, a concept that would require improved computer networking expertise if it is extended to business customers.

"Any time you change your business model, you need a lot of supporting actors," Pickard said.

Of course, new enterprise networking relationships with business customers also opens another avenue for Sprint to sell transport services on its own network.

"We'll help with the migration from a networking perspective, then sell them the transport to go along with it," Pickard said. "If we can bring a new customer into the fold, when their transport contract comes up for renewal we can get that part of the business."

Avnet is a distributor of hardware and software from several major systems manufacturers, including Compaq/Digital, IBM, Hewlett-Packard, Cabletron, Computer Associates, Intel, J.D. Edwards and Oracle.

"We provide sales coverage and account coverage where the manufacturer's sales force leaves off," O'Callaghan said.

"What's going on among larger computer vendors is that they're tending to pull back from that category as their margins get squeezed," Pickard said. "They're looking at companies like Avnet to pick up that slack. They can no longer afford to support the lower end of the Fortune 1000."

The deal between Sprint Paranet and Avnet is not an exclusive arrangement, but Paranet did seek out a partner with nationwide capabilities and a broad range of computer manufacturer relationships so that its need to go elsewhere for additional services would be diminished, Pickard said. "We didn't want to create relationships with 10 different companies," he said. "We wanted the market leader."

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