Microsoft and SmartPipes Announce Strategic Alliance

REDMOND, Wash., and REDWOOD CITY, Calif., May 13, 2002 — Microsoft Corp. and SmartPipes Inc., a leading software company offering Web-based software products for the network service provider industry, today announced an alliance based on the companies’ shared vision for the secure delivery of managed network services and XML-based Web services technologies. The alliance includes plans for the continued integration of SmartPipes’ advanced policy-based network management solutions and Microsoft®
.NET products and technologies.

As part of the alliance, SmartPipes will adopt Microsoft products and technologies for the delivery and operation of SmartPipes’ managed network services software and solutions, including Internet protocol virtual private networks (IP VPNs) and remote access services (RAS) software products, which are sold to telecommunications operators interested in delivering reliable, robust and secure managed corporate network services. For instance, SmartPipes will deploy Microsoft products such as the Microsoft Windows® 2000 Server operating system and the Active Directory® directory service, Microsoft SQL Server (TM) 2002, Microsoft Commerce Server, and BizTalk®
Server 2002. In addition, SmartPipes will incorporate .NET technologies such as Passport, Microsoft’s single sign-on and universal authentication system, as well as industry standards such as Simple Object Access Protocol (SOAP), and Universal Description, Discovery and Integration (UDDI) into its customer offerings.

“As enterprises deploy XML Web services to implement next-generation business strategies and networks, the reliable delivery of trustworthy, managed networking services is a critical component to ensuring their success,” said Steve Ballmer, CEO of Microsoft. “Combined with Microsoft’s cutting-edge software, SmartPipes’ innovative, policy-based networking software and technologies offer service providers the means to implement and deliver trustworthy, standards-based solutions.”

SmartPipes’ existing service provider customers are currently capitalizing on its unique Web-based software delivery and licensing model, which greatly reduces the complexities, capital expenditures, operational costs and business risks associated with implementing and supporting advanced managed services solutions. With Microsoft’s telecommunications-class directory, database, and business software and technologies, SmartPipes has built a comprehensive solution that enables service providers to achieve rapid time to market while offering highly scalable, flexible, reliable and secure value-added managed services such as IP VPNs, Remote Access Services and Customer Premise Equipment (CPE) management. With SmartPipes’ rapid software development processes, which continuously deliver new software products and existing product feature and functionality enhancements over the Web, service providers are able to provide customized managed services solutions that uniquely meet their enterprise customers’ requirements.

“Initially, these efforts will include joint sales proposals, collaboration in the standards communities and product-creation efforts at SmartPipes’ software development and secure operations facilities in Ohio and Microsoft’s product development centers in Redmond, Wash., and by Microsoft Consulting Services group,” said Hank Nothhaft, chairman and CEO of SmartPipes. “Over the past two years we have been working together to build the SmartPipes Web-based software platform using the latest Microsoft products and technology, in particular Microsoft Active Directory. Now we are prepared to further expand on our vision of using Web-based software products and XML Web services technology to offer service providers a simple and comprehensive management solution for deploying telco-class value-added managed services.”

“Compatibility and ease of integration are key to the success of managed services for service providers,” said John Doerr, general partner at Kleiner Perkins and SmartPipes board member. “Microsoft’s efforts in creating and promoting Web services through .NET combined with SmartPipes’ Global IP Services (TM) software products provide a powerful solution to service providers deploying managed services. Kleiner Perkins is excited to be working closely with Microsoft on this and other initiatives to help define and accelerate the next generation of Internet-based computing.”

SmartPipes offers leading policy-networking software products for the network service provider industry that simplify and automate the design and deployment of managed services, such as IP VPN networks, Remote Access services and CPE device management. With SmartPipes’ Web-based software, service providers are able to leverage their current network infrastructures and offer high-value managed services to enterprise customers while improving internal productivity and streamlining operations. SmartPipes is headquartered in Redwood City, Calif.; maintains its carrier-class software development and operations facilities in Dublin, Ohio; and has sales offices in Reston, Va., Dallas, Texas, and Paris, France. SmartPipes can be found on the Web at

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