Enron Advances Real-Time Bandwidth Trading with SunMicrosystems Deal

Written by Khali
January 31, 2000

Posted: 03/2000

Enron Advances Real-Time Bandwidth Trading with Sun
Microsystems Deal
By Khali Henderson

s part of its ongoing effort to deliver real-time provisioning of network bandwidth,
Enron Broadband Services Inc. (www.enron.net), a wholly
owned subsidiary of Enron Corp, announced in mid-January an agreement with Sun
Microsystems Inc. (www.sun.com).

Under the agreement, Sun will help Enron build out the footprint of its next-generation
broadband infrastructure–the Enron Intelligent Network (EIN), which is based on fiber,
servers, pooling points and Enron’s Broadband Operating System (BOS).

The Enron BOS, which is being developed on Sun’s Solaris Operating Environment, allows
real-time provisioning of bandwidth across multiple networks. It includes intelligent
technologies that will provide a variety of features, such as forward reservation of
bandwidth, real-time provisioning, dynamic content management and security.

In May, Enron, a telecom industry outsider, forced the consideration of commodity
trading of bandwidth with its proposal for a real-time trading system. The company
announced its first successful trade of a New York-Los Angeles circuit with Global
Crossing Ltd. (www.globalcrossing.com) in
early December (see "Resale Channel," February 2000 issue of PHONE+
magazine).

Enron and Sun also plan to collaborate to optimize the EIN for use with the Sun
platform, which the companies say will lead to accelerated deployment of Enron’s BOS.

In addition, the two companies will promote EIN services to address the needs of
enterprises, software developers and service providers for the delivery of broadband
applications at guaranteed service levels.

"This alliance with Sun, along with Enron’s initiatives in bandwidth trading and
intermediation, will bring fundamental changes to the Internet," said Jeff Skilling,
Enron president and COO said in a press statement. "What this will mean for
corporations is a new generation of mission-critical broadband applications that can be
delivered to Internet customers in a secure, guaranteed quality-of-service manner."

Enron will purchase 18,000 Netra carrier-grade and enterprise servers and associated
storage and services from Sun to expand the EIN. The Sun systems will be used to expand
aggressively the footprint of the EIN to more than 2,000 points of presence (PoPs)
worldwide. In addition, Sun will purchase broadband video streaming services from Enron to
support worldwide operations.