EDS and CenterBeam form $500m alliance

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EDS and CenterBeam have formed a global alliance to broaden the reach of their service offerings into new markets.

In addition to the alliance - which the companies estimate will generate more than $500 million in incremental revenue in desktop management over the next 10 years - EDS participated in CenterBeam’s recent $115 million third round of funding. CenterBeam has also signed a 10-year data storage and management contract with EDS valued at over $50 million.

“Through this alliance, we can utilize the EDS data center infrastructure to extend our range of services,” said Sheldon Laube, chairman of CenterBeam. “This alliance combines traditional outsourcing with our innovative business model to revolutionize the way we strategically serve customers. ”

Under terms of the alliance agreement, the two companies will develop joint IT service offerings. The alliance will focus on cost-effective, innovative computing, remote desktop management, strategic consulting and world-class systems integration services.

“CenterBeam’s desktop infrastructure technology using wireless networking is exactly the kind of innovation that EDS’ value proposition is built upon,” said Doug Frederick, president of EDS Information Solutions. “In addition, this alliance allows us to reach an entirely new market segment.”

EDS service offerings available to CenterBeam customers as a result of the alliance include increased support for client/server and hosted applications, including a wide range of CRM and enterprise resource planning tools. The two companies plan to jointly develop integrated offerings aimed at various vertical markets as well as participate in a mutual exchange of technology in which each company will incorporate key elements of the other company’s technologies into its current service offering.

CenterBeam will outsource its back-end data center operations to EDS. These services include server management, development and support of storage area networks, disaster recovery services and daily data back-up - the key elements of the secured CenterBeam infrastructure.

CenterBeam provides a total managed IT infrastructure that includes superior technology and services. In addition to EDS, strategic investors include Microsoft, Dell, Intel and Equity Office Properties Trust. Additional financial investors include Accel Partners, Apax Partners, Patricof & Co. Ventures, Bluevector, Charter Growth Capital, Comdisco, CrossPoint Venture Partners, Impact Venture Partners, Merrill Lynch, New Enterprise Associates, and Tangent Fund Management.

EDS brings together the world’s best technologies to address critical client business imperatives. It helps clients eliminate boundaries, collaborate in new ways, establish trust and continuously seek improvement. The company serves the world’s leading companies and governments in 55 countries.



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