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EXHIBIT 99.1
DIGITAL ISLAND TEAMS WITH COMPAQ, INTEL AND MICROSOFT TO BUILD WORLD'S LARGEST
STREAMING MEDIA NETWORK
Broadcast-Scale Delivery by Digital Island to 7.5 Million Simultaneous Global
Viewers Supported by Equity Investment from Compaq, Intel and Microsoft
SAN FRANCISCO, June 20, 2000 - Digital Island, Inc., a leading Global e-Business
Delivery Network, today announced that it is working with Compaq Computer
Corporation, Intel Corporation and Microsoft Corporation to extend its
infrastructure to provide broadcast-scale streaming media - up to 7.5 million
simultaneous media streams - for the first time over the Internet.
The scope of this streaming network, roughly comparable to a prime-time TV
program's reach and an order of magnitude larger than any previously announced
streaming network, is expected to accelerate the market opportunity for
entertainment and other companies, such as financial services and publishing
firms, using rich media for Web-based customer transactions. The global market
for streaming media content delivery will rapidly grow from $78 million in 2000
to $2.5 billion by 2004, according to Jupiter Communications.
"This relationship is creating a win-win solution in deploying a streaming
network capable of delivering 7.5 million simultaneous streams. Digital Island
is poised to take advantage of the rapidly growing streaming market," said Greg
Howard, principal analyst of the High-Tech Resource Consulting Group, LLC.
The infrastructure expansion over the next two years is expected to greatly
increase the streaming and transactional capacity of Digital Island's high-
performance e-Business Delivery Network, which offers an integrated suite of
hosting, network, content delivery and application services for companies
engaged in interactive e-Business.
Compaq, Intel and Microsoft have agreed to make a combined equity investment of
$45 million in Digital Island to support its infrastructure development.
Specific terms of the investment are not being disclosed. In addition, Compaq
Financial Services (CFS) will provide $50 million in equipment lease financing
to Digital Island, to expedite their worldwide deployment of Compaq servers.
This financing support will continue as Digital Island expands into more than 25
countries in North America, Europe and Asia. CFS will also extend up to $50
million in lease financing to qualified Digital Island customers.
Digital Island has standardized on Intel architecture-based Compaq ProLiant
servers as its scalable global platform for Microsoft(R) Windows Media(TM)
Services running on Windows(R) 2000. Digital Island has committed to deploy up
to 8,000 Intel architecture-based Compaq servers worldwide, including the new
ultra-dense ProLiant DL360 servers built on Intel's PentiumO III processor.
Digital Island has committed to deploy these servers in its e-Business Delivery
Network, integrating regional data-center hosting with network-edge computing
that locates streaming content close to the end user for the best possible
streaming quality. Digital Island's e-Business Delivery Network is powered by
the company's Footprint(TM) content delivery service, which employs the
company's break-through Best Distributor Selection technology to guarantee
content is served from the optimal location.
Digital Island's expanded streaming media infrastructure will support Windows
Media. Coupled with integrated digital rights protection for streaming and
downloadable content and superior audio and video quality, Windows Media
Services provides the capacity for up to 9,000 concurrent streams on a single
server. The network will be powered by Windows 2000 Server, which provides an
industrial-strength platform with the manageability, scalability and
availability required by the most demanding applications.
"Streaming media is an intricate part of our global sales strategy, allowing us
to interact with customers in more than 160 countries through a rich end-user
experience," said Michael J. Cohen, President of National Accounts and Senior
Vice President at AIG. "The relationship between Digital Island, Compaq,
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Intel and Microsoft to build the world's largest streaming media architecture
will be an enormous catalyst for expanding our business across the globe."
A Digital Island customer, AIG is the leading U.S.-based insurance and financial
service and the largest underwriter of commercial and industrial insurance in
the United States.
"The Internet is all about interactivity and e-Business is about the end-user
experience," said Ruann F. Ernst, Chairman and CEO of Digital Island. "Users
want the most compelling interactions, which means rich media must be a part of
the experience. This powerhouse combination of Compaq, Intel and Microsoft
working with Digital Island will remove the barriers to using rich media to
reach broadcast-scale audiences with full transactional capabilities - adding an
entirely new dimension to e-Business around the world."
"Compaq is committed to enabling leading Service Providers such as Digital
Island to pave the way to emerging applications and markets," said Keith
McAuliffe, Compaq Vice President and General Manager, Service Provider Business
Unit. "We are pleased to extend our partnership with Digital Island and work
with them to enable the best Internet infrastructure, using Compaq's industry-
leading ProLiant servers at the edge, to improve streaming media capabilities."
"In today's world, the speed, scale and scope of the Internet are synonymous
with innovation itself. Nothing is faster than Intel architecture-based servers
and nothing provides greater economies-of-scale or scope of expertise than the
horizontal industry," noted Tom Lacey, Intel Vice President, Sales and Marketing
Group; President, Intel Americas, Inc. "By providing technology building blocks
for the Internet economy - Digital Island's Footprint technology, Compaq's
ProLiant Servers, and Microsoft Windows Media Services and Windows 2000 - all
running on Intel's architecture, we bring together broadcast-scale streaming
media and content distribution capabilities for companies in order to meet the
needs of the surging E-conomy."
"Digital Island's commitment to building a broadcast-scale infrastructure moves
streaming media into prime time," said Will Poole, Vice President of the Digital
Media Division at Microsoft. "The customer demand is here and growing. Windows
Media Services running on Windows 2000 has the proven reliability and
scalability to meet the demand, and this announcement is an important step
toward ensuring the network capacity will be in place for streaming media to
reach its full potential for business and entertainment."
Digital Island plans to enable its Footprint streaming content delivery service
on the Windows 2000, Intel-architecture-based Compaq server platform. The four
companies will jointly market and promote Digital Island's Footprint content
delivery services for streaming media. Digital Island's Footprint content
delivery network also distributes other types of Web content - from static
images to authenticated data - to the edge of the network and seamlessly directs
the end user to the most available server for the fastest, most reliable
experience.
About Digital Island
Digital Island(R) is a leading Global e-Business Delivery Network using hosting,
content delivery, networking and application services to help companies improve
their customers' on-line experience by making Web applications run faster and
more reliably and scale globally, resulting in more successful e-Business
transactions. Digital Island is headquartered in San Francisco with a presence
in 25 countries. www.digitalisland.net.
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About Compaq
Compaq Computer Corporation, a Fortune Global 100 company, is the largest
supplier of computing systems in the world. Compaq designs, develops,
manufactures, and markets hardware, software, solutions, and services, including
industry-leading enterprise computing solutions, fault-tolerant business-
critical solutions, and communications products, commercial desktop and portable
products, and
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consumer PCs. Compaq products and services are sold in more than 200 countries
directly to businesses, through a network of authorized Compaq marketing
partners, and directly to businesses and consumers through Compaq's e-commerce
Web site at http://www.compaq.com. Compaq markets its products and services
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primarily to customers from the business, home, government, and education
sectors. Customer support and information about Compaq and its products and
services are available at http://www.compaq.com
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About Intel
Intel, the world's largest chip maker, is also a leading manufacturer of
computer, networking and communications products. Additional information is
available at www.intel.com/pressroom.
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About Microsoft
Founded in 1975, Microsoft is the worldwide leader in software, services and
Internet technologies for personal and business computing. The company offers a
wide range of products and services designed to empower people through great
software - any time, any place and on any device.
Important Notice
Digital Island is a registered trademark of Digital Island, Inc. Footprint is a
trademark of Digital Island, Inc. All other trademarks are properties of their
respective owners.
This release may contain forward-looking statements that are subject to risks
and uncertainties. Important factors which could cause actual results to differ
materially from those in the forward-looking statements, include but are not
limited to: the company's short operating history which makes it difficult to
predict its future results of operations; the company's history of operating
losses and expected future losses which could impede its ability to address the
risks and difficulties encountered by companies in new and rapidly evolving
markets; the company's future operating results could fluctuate which may cause
volatility or a decline in the price of the company's stock; the possibility
that the company may not be able to price its services above the overall cost of
bandwidth causing its financial results to suffer; and other factors detailed in
the Company's filings with the Securities and Exchange Commission.
Microsoft, Windows Media and Windows are registered trademarks of Microsoft
Corp. in the United States and/or other countries.
MEDIA CONTACTS:
Media contact at Digital Island:
Irwin Greenstein
Digital Island
415/738-4162
[email protected]
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Michelle Spolver
Compaq
408/285-0159
[email protected]
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Howard High
Intel
408/765-1488
[email protected]
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Tim Fry
Shandwick International for Microsoft
425/452-5440
[email protected]
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