Beyond.com, ITC, Microsoft Win $121 Million Contract From IRS
Sunnyvale, California, June 3 (Bloomberg) -- Beyond.com Corp., Intellisys Technology Corp. and Microsoft Corp. said they won a $121 million contract from the U.S. Internal Revenue Service for the delivery and maintenance of Microsoft software to 130,000 IRS desktop computers.
Closely-held Intellisys Technology will serve as prime contractor in the digital delivery of Microsoft's Windows NT operating system, Office Professional group of business software, Exchange server software for e-mail and BackOffice family of server-based applications. Microsoft is the No. 1 software maker. Beyond.com is an Internet-based software retailer.
The 65-month contract is Beyond.com's largest ever for the electronic delivery of software, which is the sending of software over the Internet rather than putting it on disks or CD-ROMS for installation on personal computers. Digital delivery is aimed at faster installation and cheaper costs and will save the IRS $60 million, Intellisys Technology said.
While the technology isn't widely used by consumers, many analysts expect it will boom as high-speed Internet access becomes more common.
Under the contract, the IRS will be able to use Beyond.com as its Web-based store for the electronic purchase of additional Microsoft products.
Beyond.com, which is based in Sunnyvale, California, fell 9/16 to 17 7/16. Microsoft, which is based in Redmond, Washington, fell 2 1/16 to 76 3/8.
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