Accenture's and Exodus' Proposed Joint Offering of Internet Services and Web Hosting Services Will Help Financial Services Companies Deploy Complex Internet Applications Worldwide
NEW YORK, NY and SANTA CLARA, CA - January 20, 2000 - Exodus Communicationsâ„¢, Inc. (NASDAQ: EXDS), a leader in complex Internet hosting and managed services, and Accenture, a leading global management and technology consulting firm, today announced that they intend to team to deliver complex e-business solutions to customers in the financial services industry. Together, the two companies plan to offer financial services companies the skilled teams and the comprehensive solutions for planning, designing and deploying complex Internet applications: ExodusÂ® to provide complex Web hosting and related managed services and Accenture to provide application development and consulting.
Under the letter of intent entered into by the parties, Accenture will locate a core team of consulting professionals at Exodus Internet Data Centers (IDCs), state-of-the-art Web hosting facilities, in key locations around the world. This will enable customers to take advantage of services designed to support the strategic development and business integration aspects of their e-commerce solutions. Exodus will provide the Web hosting facilities, network connectivity and managed services that include security, server monitoring, and data backup and recovery.
"Our arrangement with Exodus brings together a leader in e-commerce business integration and a leader in complex Internet hosting to offer comprehensive e-business solutions to banks, insurers, brokerages, health services organizations and other financial services organizations," said Allen Wolpert the Accenture partner who leads the firm’s e-commerce work in its Financial Services practice. "Together, we can provide a broad range of services -- from strategy to rapid implementation to reliable end-to-end Internet operations - that can be easily scaled to meet demand as our customers in the industry continue to evolve and grow their businesses."
"We are pleased to join forces with Accenture to offer services to the leaders in financial services," said William R. Yeack, executive vice president, professional services for Exodus. "Accenture’s financial services consulting expertise combined with Exodus’ experience hosting complex Internet operations for more than 1,700 dot com and enterprise customers -- including Merrill Lynch, E-Trade and BankOne -- will offer the availability and scalability that are vital to accommodate the growth of online investing and other financial services applications."
Accenture and Exodus intend to work together to better serve the e-commerce marketplace. Forrester Research projects that on-line sales of business-to- business financial services and products, such as commercial banking and insurance, will reach $80 billion by the year 2003*. Additionally, industry experts predict that consumers will increasingly use the Internet to purchase a range of financial services, including banking, mortgage, insurance and bill payment. For example, Forrester Research predicts that some 9.7 million households will be trading online by 2003, and will have $3 trillion in Internet brokerage accounts, approximately one-fifth of all retail investment assets.** As financial services companies develop and execute their e-business strategies, Exodus and Accenture are positioned to provide the consulting services and the Internet platform to support customer’s mission-critical Internet operations.
About Exodus Communications
Exodus Communications is a leading provider of complex Internet hosting for enterprises with mission-critical Internet operations. The Company offers sophisticated system and network management solutions, along with technology professional services to provide optimal performance for customer’s web sites. Through its subsidiary, Service Metricsâ„¢, ExodusÂ® is a leading source of Web site performance monitoring and measurement services. Exodus manages its network infrastructure via a worldwide network of Internet Data Centers (IDCs) located in the United States, Europe and Asia Pacific.
Forward Looking Statements
This press release contains forward-looking statements. Actual results may differ materially due to a number of risks, including: the risk that Exodus and Accenture may not finalize definitive agreements and enter into the proposed alliance. The matters discussed in this press release also involve risks and uncertainties described from time to time in Exodus’ filings with the Securities and Exchange Commission (SEC). In particular, see "Other Factors" in Exodus’ quarterly and annual reports filed with the SEC. Exodus does not assume any obligation to update the forward- looking information contained in this press release.
Exodus Communications and Exodus are trademarks of Exodus Communications, Inc., and Service Metrics is a trademark of Service Metrics, Inc. and may be registered in certain jurisdictions. All other trademarks mentioned in this document are the property of their respective owners.
* Source: Building Services on the Net, January, 1999, Forrester Research
** Source: St. Louis Post-Dispatch July 4, 1999