IBM and C&W link up over the network

Cable & Wireless (C&W) and IBM have forged a global alliance designed to integrate Systems Network Architecture (SNA) networks with Frame Relay WANs.

From spring next year, the telecoms and computing giants will sell a branded service known as Cable & Wireless SNA Connect, which will initially link SNA networks over Frame Relay with the eventual goal of full migration to IP.

Kevin Dean, head of IT Sector New Business Development, C&W Global Markets, told Silicon.com: "Network cost savings are the main drivers here, as well as making sure there's an assured migration path."

Jack Baney, director of IBM's Global Service Provider Partner Programme, added: "There are still many customers running mission critical applications over SNA, but they're also migrating to IP. We will provide a very methodical migration process."

C&W, the UK's second largest telco, says the two sectors that will benefit most from the new service are finance and travel and transport - both areas where businesses are trying to make cost savings on highly distributed wide area networks.

Robin Bosworth, a director at telecoms consultancy Schema, said: "This is likely to be the first of a number of alliances between telcos and IT providers. IT vendors - because of IP and other factors - now have a greater role to play, but both sides will plug holes in each other's expertise."

Notably, C&W and IBM have not ruled out forging similar alliances with other players. While the two companies spoke proudly about shared corporate values, IBM admitted that in some markets, in the search for best of breed partners, C&W would involve other providers in the programme.

"But IBM brings credibility and confidence in terms of SNA," C&W's Kevin Dean added.

C&W and IBM said they entered discussions about forming their partnership "about a year ago", and that today's announcement has nothing to do with Cable & Wireless Communications - C&W's UK arm - recently handing a ten year, $3bn IT outsourcing contract to the US giant.

C&W is also rumoured to be one of a dozen major telcos with an interest in buying IBM's global networks operation.