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Merlot Is First To Extend Service Provider Network Onto The Customer Premise For Delivering Enhanced Networking Solutions (Competitive Local Exchange Carriers, Internet Service Providers and more than 10 Million Small & Mid-Sized Businesses in U.S. to Benefit) September 7, 1999 - NETWORKING SOLUTIONS BETHEL, CT, Sept. 7, 1999 - Merlot Communications, Inc., today introduced a breakthrough product that - for the first time - extends the service provider network directly onto the customer premise via a single, low-cost device that unifies voice, data and video services and applications delivery. The Merlot MAGNUM™ Applications and Services Platform (ASP) is designed to allow service providers to deliver complete communications solutions to the rapidly growing small and mid-sized enterprise (SME) market. These include the full feature functionality of a Hybrid Key/PBX or CENTREX system, voice mail, high-speed Internet and Wide Area Network access, LAN-based access to shared resources and more. The true power of the ASP will be realized when it is deployed within a ServicePage Architecture. This distributed approach, similar to the Internet, requires intelligent edge devices that play an active role in the delivery of enhanced services. Given that emerging networks separate control and transport functions, Merlot engineered its ASP to support today's protocols as well as emerging control protocols like Session Initiation Protocol (SIP). In addition, XML-based scripting, built on a simple set of call processing functions, enables features and enhancements beyond anything available today. This open architecture allows the rapid deployment of advanced services created by third party developers and service providers. "Rapid and cost-effective deployment of enhanced communication services will be instrumental to creating a competitive advantage and healthy profit margins for service providers" said Michael Tessler, President and CEO of BroadSoft, a leading provider of enhanced services platforms. "The combination of Merlot's distributed approach at the customer premise with BroadSoft's BroadWorks™ platform at the service provider makes the right combination for delivering enhanced services to small and mid-sized businesses" added Tessler. According to Tom Nolle, President of CIMI Corporation in New Jersey, "Value-added voice services will be the most important source of profits to competitive service providers for the next four years, at least. The Merlot approach of using an XML architecture to permit feature definition and customization makes the process of creating these value-added services much easier. The fact that they do this as intelligent CPE rather than as a component of carrier infrastructure lets providers deploy these features without threatening their network devices with obsolescence. Finally, the ServicePage approach lets users tune the features to their business needs, which is the key to making those features optimally valuable and revenue-generating." Merlot anticipates that a broad range of service providers, including Competitive Local Exchange Carriers (CLECs) and Internet Service Providers (ISPs) will want to provide the Merlot MAGNUM ASP as part of their total service offering. With this ASP, service providers are able to market a wider array of enhanced services and applications that generate new revenue streams, higher margins and increased customer loyalty. "The Merlot MAGNUM bridges the gap between the growing needs of smaller enterprises - for a simple, unified approach to communications - and the broadened role of service providers - to become a complete solutions provider for managed network services, including voice, data, video and customized service applications," said Michael Centrella, Merlot President, CEO and co-founder, in making today's announcement. "We engineered the Merlot MAGNUM to address two emerging market requirements. First, the alternative service provider industry has become a powerhouse in offering a broad range of communications services to the small and mid-size business marketplace. These service providers are aggressively building what we call the 'new' generation of networks that will deliver a comprehensive portfolio of offerings - and new billable services - to their customer base. "Second," continued Mr. Centrella, "there are some 10 million smaller enterprises out there demanding more powerful, total communications solutions. And, repeatedly, they've told us they want to deal with one vendor who will simplify the complex, expensive and time-consuming process of selecting and managing their communications networks." Available in the fourth quarter of 1999, the Merlot MAGNUM ASP enters the marketplace at a time when, research shows, service providers are looking for new revenue opportunities. "Merlot is introducing a CENTREX-like business model to CLECs and ISPs in the LAN environment, effectively extending to the desktop the capabilities and value of new generation networks - being built for these fast-growing carriers by Lucent Technologies (NYSE: LU), Cisco Systems (Nasdaq: CSCO) and Nortel Networks (NYSE: NT) and other new generation soft switch vendors," according to Eric Schmiedeke, a Vice President of Phillips InfoTech, a Parsippany, NJ-based industry analysis firm. "Service providers anticipate demand among small and mid-size enterprises for data and Internet services will outpace that for voice. This next generation business model will benefit a majority of SMEs by enabling service providers to configure integrated premises equipment as an extension of the service provider network, thus making it easier to provide better network maintenance, support and premium services to their customers," Mr. Schmiedeke concluded. Added Ron Keenan, Merlot Chief Technology Officer and co-founder, "The Merlot MAGNUM represents the future of SME communications. Service providers are demanding 'intelligent' customer premise equipment that reduces network complexity by integrating voice and data on a single, affordable platform with guaranteed Quality of Service. What's more, it must be flexible enough to evolve with today's rapidly changing wide area network. That's precisely what Merlot is delivering." About Merlot Communications: Merlot Communications, Inc., is leading the industry in new generation networking by supplying advanced, integrated networking solutions that increase the profitability and capability of service providers who seek to dramatically simplify and lower the cost of business communications for enterprise customers. Merlot is the first systems supplier to bring service provider network integration to the customer premise, allowing them to customize end user features and functions with the Merlot MAGNUM™ ASP. Merlot identifies and deploys networking technologies that are cost-efficient, easy to manage and provide the highest quality of service available. Headquartered in Bethel, Connecticut, Merlot was founded in 1997 by a team of senior executives from leading data and telecommunications companies, notably FORE Systems, MCI, Digital Equipment and TIE/Communications. |
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