The equally-owned Interactive Digital Solutions multimedia joint venture between AT&T Corp’s Network Systems unit and Silicon Graphics Inc is to develop software to integrate Silicon Graphics’s MIPS RISC-based media server and system software with key elements of public networks, including such AT&T products as high-speed switches, synchronous transport, broadband access systems and network operations systems. AT&T plans to install a string of video servers in its long-distance network as part of its planned transmission service for telephone and cable companies. AT&T Network Switching systems president Dan Stanzione – also chairman of Interactive Digital Solutions reckons the venture will represent the largest investment made in interactive technologies so far: revenue is between 18 months and two years away. The value of the alliance – which was mooted in several other forms than a joint venture during the negotiations – to Silicon Graphics, was immediately apparent as its share price climbed 14% on the announcement. AT&T’s capital outlay on hardware alone is between $3,000m and $4,000m a year, Stanzione reckoned. The unit will not develop or market television set-top devices – seen as the gateways into homes like those Silicon Graphics is currently devel oping for Time Warner Inc, although it will provide interoperability with set-tops and may develop operating system technologies for them. Its products will also be separate from mechanisms that will be used to get data in and out of the server. Silicon Graphics and AT&T envisage cable companies buying the media server, system software and integration services that will sit on top of transmission systems and interact with set-top boxes. One question is where the venture leaves AT&T’s internal server development. AT&T says its Global Information Solutions division, having decided to focus on six market segments, will stick to those and will not be doing interactive technologies. Interactive Digital Solutions will be based at Silicon Graphics’s Mountain View, California building for now, staffed with Silicon Graphics, AT&T and new people. Former Silicon Graphics vice-president, media systems division, James Barton, is Interactive Digital’ president and general manager.
