SGI and Mercantec Form Strategic Alliance to Develop E-Commerce Solutions For Service Providers

Powerful Combination of Scalable Servers With Industry-Leading

Software and Services Under Development



Nov 13, 2000, 00:00 ET from SGI

    MOUNTAIN VIEW, Calif. and NAPERVILLE, Ill., Nov. 13 /PRNewswire/ -- SGI
 (NYSE:   SGI) and Mercantec today announced they have agreed to a strategic
 alliance that would bring world-class e-commerce solutions to the Internet
 service provider (ISP) market. The initiative centers around the two
 companies' proven technology currently deployed by thousands of businesses,
 including Verio, GTE and Interliant. The combination of Mercantec SoftCart(R)
 e-commerce storefront software with scalable SGI(TM) IRIX(R) and Linux(R)
 OS-based servers will allow ISPs to quickly provide value-added e-commerce
 services to small businesses.
     The objective of the alliance is to develop a turnkey solution for small
 and regional ISPs, which today total over 6,000 in the United States with
 roughly as many more internationally. By developing a scalable e-commerce
 solution for service providers, SGI would offer a business model of shared
 revenue at a new low entry price. This allows these highly competitive ISPs to
 differentiate their service offerings and break into the rapidly expanding ASP
 marketplace.
     "The number of e-commerce-enabled small and medium business (SMB) Web
 sites increased steadily in the past three years. We expect the e-commerce
 penetration to rise as more SMB Web sites become increasingly sophisticated,"
 said Helen Chan, an analyst at the Yankee Group. "We have found that when SMBs
 are looking to add e-commerce functionality to their Web site, SMBs often turn
 to trusted service providers for such services."
     "Today many large storefronts such as Newline Cinema and the Atlanta
 Braves are running on SoftCart," said Tim Noe, executive vice president,
 Global Sales, Mercantec. "Many small to medium-size businesses with 10 to over
 1,000 items to sell need a quick, easy-to-use and cost-effective electronic
 storefront solution. By combining SoftCart with innovative Internet servers
 from SGI, any ISP can provide this service."
     "Mercantec is a leading provider of electronic storefront technology, and
 we are pleased to be working with them to develop a new business model for
 service providers," said Jason Danielson, director of marketing,
 Telecommunications and Media Group, SGI. "We believe that our scalable IRIX
 and Linux OS-based servers combined with Mercantec SoftCart software will
 provide an extremely compelling revenue sharing model for local and regional
 ISPs."
 
     About Mercantec
     Established in 1995, Mercantec, Inc. is a leading global provider of
 software products and services that enable small and medium-size businesses to
 increase revenues by adding an online storefront. Mercantec distributes its
 products and services through service providers such as telecommunications
 companies, Web hosting suppliers and financial service companies. Mercantec's
 Internet commerce solutions are used by more than 17,500 merchants worldwide
 through more than 200 industry-leading service providers, such as Verio,
 EarthLink, Sprint, GTE, Interliant, Ameritech, KPN and Telefonica. For
 additional company or product information, visit the Mercantec Web site,
 www.mercantec.com, or call 630-305-3200.
 
     About SGI
     SGI provides a broad range of high-performance computing and advanced
 graphics solutions that enable customers to understand and conquer their
 toughest computing problems. SGI Media Commerce(TM) solutions enable
 telecommunications, broadband Internet, media and entertainment customers to
 transact content over a vast range of networks. Headquartered in Mountain
 View, Calif. with offices worldwide, the company is located on the Web at
 www.sgi.com.
 
 

SOURCE SGI
    MOUNTAIN VIEW, Calif. and NAPERVILLE, Ill., Nov. 13 /PRNewswire/ -- SGI
 (NYSE:   SGI) and Mercantec today announced they have agreed to a strategic
 alliance that would bring world-class e-commerce solutions to the Internet
 service provider (ISP) market. The initiative centers around the two
 companies' proven technology currently deployed by thousands of businesses,
 including Verio, GTE and Interliant. The combination of Mercantec SoftCart(R)
 e-commerce storefront software with scalable SGI(TM) IRIX(R) and Linux(R)
 OS-based servers will allow ISPs to quickly provide value-added e-commerce
 services to small businesses.
     The objective of the alliance is to develop a turnkey solution for small
 and regional ISPs, which today total over 6,000 in the United States with
 roughly as many more internationally. By developing a scalable e-commerce
 solution for service providers, SGI would offer a business model of shared
 revenue at a new low entry price. This allows these highly competitive ISPs to
 differentiate their service offerings and break into the rapidly expanding ASP
 marketplace.
     "The number of e-commerce-enabled small and medium business (SMB) Web
 sites increased steadily in the past three years. We expect the e-commerce
 penetration to rise as more SMB Web sites become increasingly sophisticated,"
 said Helen Chan, an analyst at the Yankee Group. "We have found that when SMBs
 are looking to add e-commerce functionality to their Web site, SMBs often turn
 to trusted service providers for such services."
     "Today many large storefronts such as Newline Cinema and the Atlanta
 Braves are running on SoftCart," said Tim Noe, executive vice president,
 Global Sales, Mercantec. "Many small to medium-size businesses with 10 to over
 1,000 items to sell need a quick, easy-to-use and cost-effective electronic
 storefront solution. By combining SoftCart with innovative Internet servers
 from SGI, any ISP can provide this service."
     "Mercantec is a leading provider of electronic storefront technology, and
 we are pleased to be working with them to develop a new business model for
 service providers," said Jason Danielson, director of marketing,
 Telecommunications and Media Group, SGI. "We believe that our scalable IRIX
 and Linux OS-based servers combined with Mercantec SoftCart software will
 provide an extremely compelling revenue sharing model for local and regional
 ISPs."
 
     About Mercantec
     Established in 1995, Mercantec, Inc. is a leading global provider of
 software products and services that enable small and medium-size businesses to
 increase revenues by adding an online storefront. Mercantec distributes its
 products and services through service providers such as telecommunications
 companies, Web hosting suppliers and financial service companies. Mercantec's
 Internet commerce solutions are used by more than 17,500 merchants worldwide
 through more than 200 industry-leading service providers, such as Verio,
 EarthLink, Sprint, GTE, Interliant, Ameritech, KPN and Telefonica. For
 additional company or product information, visit the Mercantec Web site,
 www.mercantec.com, or call 630-305-3200.
 
     About SGI
     SGI provides a broad range of high-performance computing and advanced
 graphics solutions that enable customers to understand and conquer their
 toughest computing problems. SGI Media Commerce(TM) solutions enable
 telecommunications, broadband Internet, media and entertainment customers to
 transact content over a vast range of networks. Headquartered in Mountain
 View, Calif. with offices worldwide, the company is located on the Web at
 www.sgi.com.
 
 SOURCE  SGI

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