Wednesday March 31, 3:27 pm Eastern Time Company Press Release
Corio and Flextronics Forge Partnership to Deliver Integrated Manufacturing Services
Integration of Corio's IT Expertise and Flextronics' IT and Manufacturing Savvy Offers Customers Complete Manufacturing and IT Solution
REDWOOD CITY, Calif.--(BUSINESS WIRE)--March 29, 1999-- Corio, an Application Service Provider (ASP) specializing in enterprise applications for high growth companies, and Flextronics, a global full-service supplier of innovative design, engineering and manufacturing solutions, today announced a strategic partnership to deliver integrated, outsourced manufacturing services and applications.
Under the terms of the agreement, Corio will offer remotely hosted and managed ERP applications to Flextronics' manufacturing customers and will engineer proprietary software that will integrate Flextronics' manufacturing applications with PeopleSoft financials. The two companies have also announced the first joint customer to take advantage of these services, Vertical Networks, a leading developer of Integrated Communications Platforms.
This partnership -- the first of its kind between an electronic manufacturing services (EMS) provider and an application service provider -- will bring Flextronics and Corio customers a new level of application integration, allowing customers faster access to better information and empowering them to concentrate on more strategic business areas where they can add the most value, such as Branding, Sales, Marketing and Design. This is the next step in fulfilling the vision of both companies: to provide efficient outsourced services that enable manufacturers to fuel growth, enter new and dynamic markets and contain costs. The companies will also participate in joint sales and marketing activities.
Both companies work on similar principles: by focusing on a key component of business and integrating with the best technology available, they provide access to cutting edge technologies for companies who could not afford to implement this level of innovation and expertise on their own. Corio remotely hosts enterprise applications on a fixed-fee basis, eliminating the need for growing mid-market companies to spend scarce resources on IT infrastructure. For a flat monthly fee, companies gain access to leading applications through the Internet, without investing capital in hardware and software or hiring and retaining IT personnel.
Flextronics provides a complete global manufacturing solution by offering innovative design, manufacturing and test engineering, advanced electronics manufacturing and logistical services to original equipment manufacturers. Flextronics has focused on optimizing both the supply and distribution chain by developing manufacturing Industrial Parks where suppliers are co-located on site and vertically integrated into the manufacturing process. This integration with Corio and their outsourced ERP applications will build on those efficiencies.
Vertical Networks, the leading developer of Integrated Communication Platforms, will receive services from both companies. ''Outsourcing is a key component of our business strategy,'' said Alan Fraser, chief executive officer and president of Vertical Networks. ''By partnering with Corio and Flextronics, we can take advantage of expertise and technologies that we would not otherwise have access to. This will allow us to improve our operational efficiency and focus on what we do best: developing integrated voice and data solutions for small offices. Ultimately, our customers will benefit.''
By providing outsourced manufacturing and applications, Corio and Flextronics are allowing customers to become ''virtual corporations,'' a growing trend in business during the last five years. Virtual Corporations outsource activities to IT and Manufacturing experts while focusing on their own core competencies such as research and development and marketing.
''We want our customers to have access to the best IT services and applications,'' said Michael Marks, chief executive officer of Flextronics. ''Corio is clearly the leader in their field at offering outsourced applications. The trend of OEM's concentrating on fewer disciplines will continue to be the wave of the future, and this partnership will ensure that customers have one stop for the very best in Manufacturing and IT outsourcing. This tight integration between manufacturing and financial applications will bring competitive advantage and cost and time savings to our customers.''
''This partnership cements our lead in providing outsourced ERP applications to manufacturing customers,'' said Jonathan Lee, founder and chief executive officer of Corio.
''Flextronics has proven to manufacturers that outsourcing allows companies to keep up with growth, free resources and concentrate on their own core competencies. This is evident in their own outstanding rate of growth and financial success. We feel this agreement leap-frogs us ahead of the competition by integrating so closely with a manufacturing leader. The market for electronic manufacturing services and application hosting outsourcing will continue to grow, and this agreement is the first step in the integration between the two industries.''
According to the agreement, applications will be hosted at Flextronics' data centers, ensuring close integration for Corio and Flextronics customers. The proprietary software engineered by Corio with assistance from Flextronics is the first such integration software in the application service provider industry. Corio is concentrating on building a unique software infrastructure for its customers. The company plans on building vertically oriented software suites that will link best-of-breed applications from leading software vendors to deliver an IT solution unsurpassed in quality, integration and depth.
For instance, the integration between Flextronics' manufacturing application and PeopleSoft Financials will enable Original Equipment Manufacturers (OEMs) such as Vertical Networks to seamlessly transfer new customer orders to the manufacturing floor. Shipments directly from Flextronics to the OEM's customers could also be automatically communicated to the OEM for invoicing. The OEM will also have access to factory information that is not normally possible with the usual disparate, message-linked ERP systems.
About Corio
Corio is the leading Application Service Provider for growing companies. Corio provides a total solution including application recommendation, quick implementation, secure hosting and network infrastructure, 24x7 application support, and ongoing application management. Solutions are targeted for emerging and mid-market companies needing to implement key applications that support their complex, dynamic operation requirements. Corio is a pioneer in the ASP market and holds partnerships with other leading software, networking and hardware vendors such as Exodus, PeopleSoft and Sun Microsystems. Headquartered in Redwood City, California, Corio is backed by Kleiner Perkins Caufield and Byers and its KPCB Java Fund. More information on Corio is available at corio.com.
About Flextronics
Flextronics International Ltd., is a global EMS (Electronic Manufacturing Services) provider of a full spectrum of value-added services. Its global OEM customers include leaders in fast-growth communications, computers, medical and consumer markets where innovation, time-to-market, product miniaturization and cost reduction are paramount. For more information, please visit the Flextronics Web site at www.flextronics.com.
CORIO is a trademark of CORIO Corp. Flextronics is a trademark of Flextronics, International. Vertical Networks is a trademark of Vertical Networks.
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