From: "prdept" <prdept.Building#...@msmail.corp.sgi.com>
Subject: Formation of Interactive Digitial Solutions
Date: 24 Jun 1994 13:27:52 -0500
Organization: Silicon Graphics, Inc.
Approved: sgi-annou...@dcdmjw.fnal.gov (Matthew Wicks)
Reply-To: prd...@corp.sgi.com (Kirsten)
AT&T, SILICON GRAPHICS FORM NEW COMPANY TO SPEED ARRIVAL
OF INTERACTIVE SERVICES VIA TELEPHONE, CABLE NETWORKS
NEW YORK (June 22, 1994) -- AT&T Network Systems and Silicon
Graphics, Inc. (NYSE: SGI) said today they have formed a joint
venture company -- Interactive Digital Solutions -- to rapidly
develop and deliver large-scale, fully integrated, interactive
video server solutions for telephone company networks and cable
TV systems. No financial terms were disclosed.
Software and other products of the new company, which is owned
equally by AT&T and Silicon Graphics, will help local telephone
companies, cable systems and other network providers offer
movies-on-demand and other interactive entertainment and
information services to consumers, students and business people.
At a news conference here to announce the venture, the companies
demonstrated capabilities available today by using a Silicon
Graphics media server with AT&T Network Systems' broadband
networking capabilities. Software developed by Interactive
Digital Solutions will greatly expand the multimedia capabilities
that service providers can offer their customers in the near
future, they said.
The new company will develop software to seamlessly integrate
Silicon Graphics' powerful MIPS(r) RISC-based media server and
system software with key elements of public networks, including
such AT&T products as high-speed switches, synchronous transport,
broadband access systems and network operations systems.
"AT&T is committed to providing telephone and cable TV company
customers the most complete solutions possible," said Richard A.
McGinn, president of AT&T Network Systems.
"By teaming up with a major leader in visual computing like
Silicon Graphics, we can help our customers offer their customers
the most comprehensive set of interactive multimedia services
possible," he said.
"We're committed to early commercial deployment of practical and
useful interactive digital services. The challenge, however, is
astoundingly complex, requiring a carefully engineered,
high-performance architecture," said Edward R. McCracken,
chairman and chief executive officer of Silicon Graphics.
"Interactive Digital Solutions will meet that challenge by
linking Silicon Graphics' computing expertise with AT&T's
commitment to open systems and unquestionable ability to reliably
connect the world with vital information and services."
James M. Barton, vice-president of Silicon Graphics' Media
Systems Division, will assume the full-time position of president
and general manager of Interactive Digital Solutions, which will
be based in Mountain View, Calif. AT&T Switching Systems
President Dan Stanzione will serve as chairman of the new
"More and more telephone carriers and cable television companies
are planning to upgrade or enhance their infrastructure to
deliver interactive multimedia services to homes and offices,"
"Interactive Digital Solutions will help them introduce those
services, creating the opportunity for a wide variety of content
owners to offer interactive products on a wide-scale basis,"
Barton said. "This new independent company draws from the
strengths of AT&T and Silicon Graphics and is uniquely suited to
develop the backbone for interactive networks."
The primary customers for Interactive Digital Solutions will be
large local service providers such as telephone companies, cable
television companies and other network operators around the
world. Products will be sold and serviced in these markets by
AT&T Network Systems through existing sales channels with the
full support of the joint venture. In addition, the new company
will provide video solutions for use in private networks.
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