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DEC, MCI, Microsoft in intranet service pact

BELLEVUE: Digital Equipment Corp., MCI Communications Corp., and Microsoft Corp. said Tuesday they were forming an alliance to deliver "Intranet" products and services to business customers.

The Intranet - the booming private business networks that mirror the global Internet - provide customers with internal Web sites, bulletin boards, E-mail and other services as well as protection from intrusion.

MCI will offer network communications, Digital will supply client-server products and services that tie desktop computers together, and Microsoft will provide the software to make the systems work.

"MCI will leverage the world's leading hardware, software, and network services to deliver the next generation of enhanced intranet and messaging applications for its business customer," MCI Chairman Bert Roberts said in a statement.

The three companies plan to deliver a fully integrated suite of managed electronic mail and messaging services, as well as electronic bulletin boards and sophisticated sales-tracking applications.

The products will provide business information to employees and customers via the World Wide Web, but anyone who is not part of the internal network will be blocked from access.

Microsoft's Internet Information Server and customised versions of Microsoft's Internet Explorer software will also be included in the intranet services.

The systems will be designed to provide customers with a "single source" for electronic mail and messaging, groupware and intranet services, and Website support and Internet connectivity.

The service will be rolled out in late June or early July, Roberts said.

According to the companies, industry analysts estimate the current $400 million market for intranet services, software, and hardware will reach $8 billion by 1998.

"It's a market of between $2 billion and $10 billion depending on where you want to look on the timescale and what services you overlay into the market," Roberts said.

Microsoft Chairman Bill Gates said these networks could open up a new world of electronic ordering and supplier relationships that could remove layers of paperwork from the administrative process.

"As businesses share information internally, a lot of that is what they want their customers and suppliers to have access to .... (Intranets are) exactly the kind of investment and infrastructure you want for that," he said.

The non-exclusive deal does not prevent the companies from selling their component products elsewhere, or from entering other alliances.

"MCI will take the lead role in selling these systems to medium and large businesses across the country," Roberts said.

The companies will run several service centres across the United States to support the venture.

"We are surprised at the level of demand we are seeing (for intranets)," said Robert Palmer, Digital's chief executive.-Reuter