CMGI Forms Newest Majority-Owned Operating Company with Support from Leading Technology Players; CMGI, Novell and Sun Team to Form 'CMGion'.Business/Technology Editors ANDOVER, Mass.--(BUSINESS WIRE)--April 11, 2000 New, Open Internet Operating Network Will Allow Others to Connect as "ions" to Access Comprehensive Suite of Net Services Strategic Investors to Contribute a Total of $40 million to the New Company Editor's Summary: -- CMGI CMGI Commonly Maintained Grounds Infrastructures CMGI College Marketing Group Information (Services) has formed a new majority-owned operating company operating company A business that engages in transactions with outsiders. , "CMGion," based in Andover, Mass., with CMGI Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. David Wetherell serving as interim CEO. -- CMGion's core business is the development and deployment of a new Internet See Web 2.0 and Internet2. operating network service designed to enhance the performance and functionality of the Internet by enabling a global network of profile-based services that will improve the efficiency of virtually any web-based application See Web application. . -- CMGion will "mine the flow" of Internet traffic Internet traffic is the flow of data around the Internet. It includes web traffic, which is the amount of that data that is related to the World Wide Web, along with the traffic from other major uses of the Internet, such as electronic mail and peer-to-peer networks. by optimally profiling and delivering any type of content, creating an "infostructure" to support privacy-enabled, profile-driven personal portals that are platform-aware, location-independent, device-independent, omnipresent om·ni·pres·ent adj. Present everywhere simultaneously. [Medieval Latin omnipres and totally seamless to the user. -- CMGion enjoys two of the world's leading technology companies as co-founding partners. Novell and Sun each plan to support CMGion with investments of capital and technologies. Novell plans to provide the software platform including protocol, directory and caching services based upon its directory-enabled Net infrastructure model (DENIM) as the core technologies for CMGion's unified global network. Sun plans to provide appliance and server platforms and key operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. components and optimizations. -- Each partner has agreed to invest $20 million in the new venture. -- CMGion incorporates anonymous profiling technology from Engage and services from key network partners such as NaviSite, which is deploying a global infrastructure through partnerships with companies such as Level 3 Communications
Level 3 Communications NASDAQ: LVLT is a communications and information services company headquartered in Broomfield, Colorado, USA. . CMGI, Inc. (Nasdaq:CMGI), the world's largest and most diverse network of Internet companies, today announced it has formed a new majority-owned operating company, named "CMGion," ("CMG-Internet Operating Network") to be based in CMGI's corporate headquarters in Andover, Massachusetts. Joining CMGI in this next-generation Internet venture are Novell, Inc. (Nasdaq:NOVL NOVL Novell, Inc. (stock abbreviation, AMEX) ) and Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. , Inc. (Nasdaq:SUNW SUNW Sun Microsystems, Inc (former stock symbol; now JAVA) SUNW Stanford University Network Workstation (Sun Microsystems, Inc) ), each of whom intend to lend both capital and technical support subject to the satisfaction of certain conditions, including the negotiation and signing of definitive agreements between CMGion and each of the parties. CMGion's mission is to create and deploy a next generation Internet See Internet2. Operating Network (or "ion") designed to enable a unified global network of profile-based services. The CMGion platform will be uniquely designed to enable more efficient delivery of applications and content on a global basis. An open, global, Internet-based network service, CMGion will enable corporate web sites, application and Internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. , and proprietary networks to leverage all of its services, much as "ions" connect to a molecule. Defining a New Role in the Internet Economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. Among its primary roles, CMGion will act as an "infomediary (INFOrmation interMEDIARY) An information provider that gathers content from several sources and functions as a data aggregator for a target audience. " between clients and servers. Central to CMGion's Internet "proxy" platform are protocol, directory and caching services. In turn, these services enable network participants to enjoy optimal user/site anonymous profiling and delivery of data types including standard, static content, as well as on-demand multimedia (audio/video) data types. CMGI envisions "ion" as a source of technical, economic and business model leverage for participating members. By virtualizing key aspects of client/server functionality involving session management, identity, and content management, CMGion expects to provide a myriad of value-added services. Demonstrating the Power of Integration: Connecting More "ions" to CMGion Offering flexibility, speed and the unique ability to link private and public systems, CMGion will publish application program interfaces (APIs) that will enable developers and network service providers to create next generation infomediaries. These infomediaries represent a critical role in the B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business Internet Economy, linking content, consumers (corporate or individual) and information flow. Integrating the infomediaries to the CMGion platform offers greater efficiency, operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. and the unique ability to anonymously monitor, measure and quantify activity in order to continually improve the online experience for each constituency. New Products/Services Offer Improved Experience and Greater Leverage For the first time ever, CMGion will offer the ability to "mine the flow" of Internet traffic at the network level, augmenting server and user-level anonymous profiling. Leveraging technology developed by CMGI's Engage (Nasdaq: ENGA), CMGion will profile any content type, including new multimedia products. The ability to conduct network-level profiling offers unparalleled insight into network design, user interests, time-of-day network activity and media measurement information that can dramatically impact network design, efficiency and cost factors. From the content user's perspective, this next-generation monitoring and profiling capability promises a more efficient, easier to use, and far more responsive experience. Advertisers will gain an added measure of independent monitoring of network activity (supporting market sizing and targeting efforts and advertising decisions), while network hosting centers will enjoy the potential to dynamically reconfigure network resources to effect greater efficiency and profitability. CMGion constitutes the next Internet technology platform: the core "infostructure" enabling tremendous leverage in delivering content and services to platform-independent users (e.g. PCs, set-top boxes, Palm Pilot/Windows CE devices, wireless, wired, and satellite applications). Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , while the systems are complex and the leverage significant, the services of CMGion are totally transparent to the user. Termed the "personal portal," the CMGion enabled infostructure has the potential to revolutionize Internet usage by optimizing every aspect of the Internet experience involving publishers and subscribers, buyers and sellers. The Initial Strategic Partners to CMGion Supporting this development in Internet infrastructure and enablement, each partner plans to provide specific expertise and technology to CMGion subject to the negotiation and signing of definite agreements between the parties. Under such agreements, Sun plans to provide appliance and server platforms and key operating system components and optimizations. Novell plans to provide the software platform including protocol, directory, and caching services software based on its recently announced directory-enabled Net Infrastructure model (DENIM) architecture. CMGion will combine these offerings, while providing a key platform for profile-based services that are delivered between centrally hosted web sites and caching services located at the network edge. Jumpstarting the CMGion network will be CMGion's access to NaviSite's (Nasdaq:NAVI) existing data centers and application management infrastructure in addition to the three to five dozen additional hosting nodes that NaviSite expects to integrate by calendar year-end through agreements with a variety of partners, such as the one announced today with co-location facilities provider Level 3 Communications. NaviSite's combination of strong, distributed application An application made up of distinct components running in separate runtime environments, usually on different platforms connected via a network. Typical distributed applications hosting and management services coupled with CMGion technology and services will create the world's largest, distributed Internet ASP facility. CMGion will pursue other ASP partners to further extend the network infrastructure in the weeks ahead. Leveraging proprietary software from Engage, CMGion will tightly integrate anonymous profiling services with popular operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. including Solaris, Linux, Unix, Tru 64 and Novell's Net services software. The resulting product is expected to offer far more efficient hosting, static and dynamic content distribution, application hosting, and caching. CMGI chairman and chief executive officer, David Wetherell, said, "This represents a historic moment in the evolution of the Internet. CMGion reflects the considerable leverage of top professionals working together for a common objective. More importantly, "ion" represents the next generation of commerce, content and community enablement over the medium of the Internet. Never before have users demanded so much refinement from a technology base that is commercially only five years old. The introduction of wireless Internet access See how to access the Internet. , new forms of Internet access tools (such as PCs, palm-sized, and other "toaster See intranet toaster and Video Toaster. (jargon) toaster - 1. The archetypal really stupid application for an embedded microprocessor controller; often used in comments that imply that a scheme is inappropriate technology (but see elevator controller). " devices) and increasingly complex content such as voice and video represent a new gauntlet gauntlet /gaunt·let/ (gawnt´let) a bandage covering the hand and fingers like a glove. for service providers to recognize and overcome." "CMGI has always been a pioneer in enabling, and simplifying the user experience - for both corporate and individual users," added Wetherell. "We see CMGion as introducing a next generation solution to a current generation problem. `ion' represents cooperation and integration on a truly global scale. It is a technology, a platform, and an enhancement vehicle for public and private applications alike. We anticipate CMGion setting the bar that will be used to measure the performance of an entire industry." Eric Schmidt, chairman and CEO of Novell, Inc., said, "This venture is a critical partnership that not only validates our vision of one Net, but demonstrates the value and architectural approach of our DENIM-based Net services software in a pure Internet environment. CMGion and its customers will reap a new level of benefits from our enterprise-proven protocol, directory, and caching services as the software platform for CMGion's unified global network." "CMGI and Sun are natural partners in building CMGion - driving innovation on the Internet, delivered to any user, anywhere, from any device," said Scott McNealy Scott McNealy (born November 13, 1954 in Columbus, Indiana) was the Chairman of Sun Microsystems, the computer technology company he co-founded in 1982 along with Vinod Khosla, Bill Joy, and Andy Bechtolsheim. , Chairman and CEO of Sun Microsystems, Inc. "Delivering CMGion to the world is going to demand scalable, reliable systems - and that means Sun. As the primary infrastructure provider to CMGion, we're looking forward to lending our expertise in serving the largest global service providers in the world." About CMGI and CMGI @Ventures With 70 companies, CMGI, Inc. (Nasdaq:CMGI) represents the largest, most diverse network of Internet companies in the world, including both CMGI operating companies and synergistic investments made through its venture capital affiliate, CMGI @Ventures. CMGI leverages the technologies, content and market reach of its extended family of companies to foster rapid growth and industry leadership across its network and the larger Internet Economy. Compaq, Intel, Microsoft, Pacific Century CyberWorks and Sumitomo hold minority positions in CMGI. CMGI's majority-owned operating companies include Engage Technologies (Nasdaq:ENGA), NaviSite (Nasdaq:NAVI), 1ClickBrands, 1stUp.com, Activate, AdForce, Adsmart, AltaVista, CMGI Solutions, Equilibrium, Flycast, iCAST, MyWay.com, NaviNet, SalesLink, Tribal Voice
CMGI's corporate headquarters is at 100 Brickstone Square, Andover, MA 01810. CMGI @Ventures has offices there as well as at 3000 Alpine Road, Menlo Park Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , CA 94028. For additional information, see http://www.cmgi.com and http://www.ventures.com. Novell Novell, Inc. (NASDAQ:NOVL), is a leading provider of Net services software that delivers services to secure and power all types of networks -- the Internet, intranets, and extranets; wired to wireless; corporate and public -- across leading operating systems. Novell's Net services software provides the foundation for one Net -- a single global network that supports new applications and forms of business. Net Services software gives IT organizations a way to adapt and accelerate their transformation to e-business, simplify the management and control of all networks, create a secure foundation for doing business on the Net, and help deliver a consistent and high-quality experience to end users in all locations. Worldwide channel, consulting, education and technical support programs, along with strategic alliances, combine Novell Net services software with third-party products and services to form complete Net solutions. For information on Novell's complete range of products and services, contact Novell's Customer Response Center at (888) 321-4CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor. (4272), or visit Novell's Web site at http://www.novell.com. Sun Microsystems, Inc. Since its inception in 1982, a singular vision -- The Network is The Computer(TM) -- has propelled Sun Microsystems (Nasdaq:SUNW) to its position as a leading provider of industrial-strength hardware, software and services that power the Internet and allow companies worldwide to ".com" their businesses. With $13 billion in annual revenues, Sun can be found in more than 170 countries and on the World Wide Web at http://www.sun.com. This release contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events, and these statements are subject to important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements in this release address a variety of subjects including, for example, the expected benefits resulting from the business of CMGion and the expansion plans of CMGion. The following important factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: CMGion may be subject to intense competition, CMGion may not execute successfully on its business plans and the growth required of CMGion may place too great a strain on its management and operations. |
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