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October 6, 1999

AT&T and IBM Target SMEs With Bundled E-Business Service

By CBR Staff Writer

AT&T Corp and IBM Corp said on Tuesday they would join forces to offer electronic business services and software and hardware to small and mid-sized business. The companies, respectively the largest US telecoms company and largest global computer firm will distribute the offering, to include IBM software, a choice of IBM servers and managed internet connectivity from AT&T, through their reseller networks. An official notice announcing the venture cited figures from market research firm, Cahners In-Stat, which estimate that small businesses’ spending on information technology will grow to $87bn in 2002 from $39m last year.

The first offerings being made available comprise IBM’s electronic business Start Now software, an IBM Netfinity AS/400 or RS/6000 server plus IBM’s Business Partner customization services. AT&T will provide internet connectivity thorough its branded Managed Internet Access Service. The offerings come at a starting price of $35,000 plus internet connection fees. Alternatively customers can rent the service from IBM Global Financing for a monthly fee of less than $2,000, the statement said.

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