FOR INFORMATION
July 16, 1998

Nippon Telegraph and Telephone Corporation
Microsoft Co., Ltd.

NTT and Microsoft to Collaborate in Product Development and Enlargement of the Business in Electronic Commerce Market



- Initially, NTT will develop and market "NCIS" (tentative name), a complete EC business solution package, built up with "Microsoft Site Server 3.0 Commerce Edition" -

- Microsoft will provide NTT with broad technical supports -



Nippon Telegraph and Telephone Corporation (NTT) and Microsoft Co., Ltd. announced that the two companies have recently reached an agreement to strengthen the cooperative relationship in the field of electronic commerce (EC)*1 through joint product development and market expansion efforts.

As the initial project under the agreement, NTT will release NTT Commercial Internet/Intranet System (NCIS: see attachment), an EC business solution package, in early September. In this product, NTT will incorporate its unique expertise, solutions (e.g. merchandising*2 and help-desk capability*3) and components for settlement and other functionality in Microsoft's standard electronic commerce transaction functions offered by Microsoft Site Server 3.0, Commerce Edition*4 (hereinafter "Site Server Commerce").

NTT and Microsoft expect the electronic commerce market in Japan to begin expanding on a full scale. By combining NTT's telecommunication technologies and Microsoft's software technologies, the two companies will provide electronic commerce-related products and services to develop the market of EC business, as follows.

- NTT will establish an organization dedicated to develop and market EC solutions using Site Server Commerce. In addition, NTT will work with its partners, mainly from the NTT Group companies, to offer NCIS which will cover system monitoring, maintenance and operations.

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Microsoft will provide NTT with technical support to enable NTT to build a wide range of EC solutions for consumers or corporate users, based on Site Server Commerce and other Microsoft's products.

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Both companies will work together for the market expansion and diffusion in direct marketing business or inter-corporate electronic commerce over the Internet, by leveraging NTT's telecommunication technologies and Microsoft's software technologies.

At the same time, NTT will add NCIS-installed products to its line-up of "Multinet Debut"*5 solutions. NTT also plans to start additional services in combination with popular search-engine services, such as "goo"*6, by sharing information on product data, marketing and customers with other companies providing these services.


Notes to Release:

*1 Electronic Commerce (EC):

Electronic commercial transactions or trades made over open environments, such as the Internet, including those settled with electronic money, conventional Electronic Data Interchange (EDI) and Continuous Acquisition and Lifecycle Support (CALS).


*2 Merchandizing:

Operations including computerization of systems for store expansion, sales promotions and retail sales.


*3 Help-Desk:

Customer support service to respond to user questions about product use and payment methods.


*4 Site Server Commerce:

Microsoft's electronic commerce system, for corporate users, officially called Microsoft Site Server 3.0, Commerce Edition, was launched on Friday, July 17. It supports the function of electronic commerce transaction between companies as well as the transaction between companies and consumers. Microsoft Site Server 3.0, a knowledge-management system was also released on the same day.


*5 Multinet Debut:

NTT-developed series of Internet and intranet solutions offering accuracy, ease-to-use and security for applications range from selection and set-up of personal computers, software and access lines to introduction of providers and homepage producers. Components can be changed to meet specific requirements.


*6 goo:

An Internet search engine (electronic information search system) covering all Japanese homepages in Japan, developed jointly by NTT and Inktomi of the United States. The system, which comprises the largest number of databases in Japan, has been provided by NTT Advertising Inc. since March 1997.



- Attachment
  What is NCIS?



NTT NEWS RELEASE