Compaq Takes Stake in Newest CMGI Venture
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Designed to speed up the delivery of applications and content, the new venture will act as an "infomediary" between clients and servers. The incubator said the new network will "mine the flow" of Net traffic by profiling and delivering any type of content, creating an "infostructure" to support personal portals.
Their investments make them co-founders of the new networking firm, which specializes in data caching services. Just as Sun and Novell lent technical support, Compaq will offer appliances, server and storage platforms and operating system components.
Compaq President and Chief Executive Officer Michael Capellas said the partnership will take advantage of Compaq's deep experience in industry- leading platforms - Windows2000, Tru64 UNIX, Linux, and Novell Directory Services and ICS - to ensure the fastest possible development and deployment of the CMGion network service."
"Compaq's support for CMGion takes the strategic relationship between our two organizations to a new level and adds tremendous momentum to the development of CMGion moving forward," said CMGI Chairman and CEO David Wetherell.
Weatherell said there would ultimately be three dozen to five dozen data centers all over the world and that CMGI would eventually allow other firms to connect to the new caching and hosting services for a fee later to be determined. Wetherell also said it will cost between $200 million and $300 million to build the first four data centers.
The deal is an extension of the alliance Compaq (CPQ) and CMGI (CMGI) forged last June. In that deal, CMGI took an 83 percent stake worth $2.3 billion in Compaq's AltaVista Co search engine. Compaq then became CMGI's largest outside shareholder.
AltaVista recently floated an initial public offering.