Term Paper on Business Plan

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Business Plan

Concentric Network Corporation provides complete, easy-to-use Internet business solutions
for small to medium-sized companies and customized Virtual Private Network and data center
services for larger organizations. Concentric's portfolio of services for small to
medium-sized companies includes high-speed DSL access, Web hosting and e-commerce. For
larger organizations, the company offers dedicated Web hosting services and VPN solutions
that enable an organization to securely and reliably communicate with its offices, mobile
sales force, business partners, vendors and customers.

Concentric offers a comprehensive portfolio of Web hosting and e-services for small and
medium-sized businesses, as well as high capacity data center solutions for larger
enterprises or Internet-centric companies. Concentric Web Solutions make it easy to do
business on the Web and are engineered to grow with customers businesses as they expand.

The ConcentricHost™ portfolio includes highly reliable Web hosting, e-commerce, domain
parking and e-mail services for individuals and small to medium-sized businesses with
services based on shared or dedicated NT and UNIX servers. The ConcentricHost line
includes EasySite, the first template-driven Web site builder that comes complete with
content, graphics and colors and enables customers to build a site with no HTML or Web
design experience. Sites built with EasySite can also be easily upgraded to a full
e-commerce store.

Concentric for Small Business Server is a complete suite of Internet access and hosting
services for Microsoft® BackOffice® Small Business Server customers.

ConcentricCenter™ includes reliable and high-performance dedicated hosting, distributed
server hosting, e-commerce and data center services for larger enterprises and
Internet-centric companies. Concentric's Peak Protection service is ideal for companies
that do not want to rely on a single hosting provider, Internet Service Provider, or an
internal data center for hosting and data center services. The service intelligently
balances traffic between Concentric hosting centers and other server locations while
providing fail-over insurance.

Concentric also offers complete programs for resellers from small Web developers to large
telecommunication companies looking to resell co-branded or completely private labeled
hosting and e-commerce services.

Access Services:
Concentric offers a full-range of high-speed dedicated access services to connect
multiple, dispersed network sites, providing Internet, intranet and LAN access across a
VPN. Most of these services have latency and throughput guarantees and are priced based on
average usage.

Options include FullChannel T1™ and T3, FlexChannel T1™ and T3, LECFrame Relay,
Digital Subscriber Line (DSL), and wireless services. Concentric is working with several
carriers to offer DSL services in major cities across the U.S. The company plans to expand
coverage nationally throughout 1999.

A broad range of Internet access options are available for individuals, telecommuters and
small businesses, including Internet access, Web hosting, e-mail, chat, file transfer
protocol (FTP), and online shareware services. A team of customer support experts back all
Concentric services, 24 hours a day, 7 days a week.

Virtual Private Networks:
The Concentric Enterprise VPN™ (EVPN) is a business-critical wide-area networking
solution that enables an organization to securely and reliably communicate with its
offices, business partners, vendors, customers, and employees (both local and remote).
Customers can also take advantage of turnkey security solutions with Concentric's Managed
Security Service.

Available in conjunction with Concentric EVPN, ConcentricQoS™ is the industry's first
service providing differentiated quality of service (QoS) capabilities for VPNs, including
fully-managed bandwidth monitoring, utilization management and customer-specific traffic
prioritization capabilities.

Concentric CustomLink™ is a unique VPN offering that gives an organization a direct,
individualized online connection to their customers.

Concentric RemoteLink™ enables mobile employees, telecommuters and business partners to
securely and cost effectively dial into their enterprise network and use network resources
as if they were locally connected.

Specialized VPN Applications:
Created in partnership with videoconferencing leader PictureTel, Concentric Video IP
Services™ combine high-performance IP transport services with value-added directory and
gateway services that bridge the IP and ISDN video worlds.

Concentric's IP voice services enable high-quality, cost-effective voice communications
across a VPN. Concentric's Carrier IP Voice Services deliver aggressively priced,
toll-quality international phone-to-phone calling to more than 200 countries around the

Concentric designed and operates a low/fixed latency, high-throughput, scaleable network.
Based on an asynchronous transfer mode (ATM) backbone, the Concentric network offers
customers access via dial-up modems as well as high-speed connections. Concentric offers
service level guarantees on dedicated connections that cover latency, network availability
and dial access.

The Concentric network in the United States and Canada consists of 19 SuperPOPs in major
metropolitan calling areas supplemented by approximately 144 traditional POPs located in
smaller markets

Our reseller programs are designed to provide tailored solutions targeted to specific
markets and include the which each market wants. You may cross sell products outside your
reseller program when opportunities arise.

Reseller Programs

IMPACT/ Enterprise Partners
· Type of Reseller: Large systems integrator, Value Added Reseller, OEM focused on enterprise access market
· Market: Large scale enterprises who need Internet solutions
· Products: Virtual Private Networks, Remote Access, Dedicated Internet Access including DSL, Web Hosting

IMPACT/ Small.biz. Partner
Type of Reseller: Systems integrator, Value Added Reseller, focused on small business market
· Market: Small to Medium sized businesses primarily those who need high speed
Internet access and hosting solutions

· Products: Internet Access, including DSL and Microsoft Small Business Server
Connectivity; Web hosting, E-commerce; Dial Access

Web Developer Network
· Type of Reseller: Web
· Market: Small to large sized businesses who need Web site hosting, E-commerce or data center services
· Products: Domain Parking, Domain E-mail, Shared Web hosting, Application hosting,
E-commerce, Managed Server, Server Co-location

Concentric Private Label
· Type of Reseller: Anyone with a large base of small business customers
· Market: Small- to medium-sized business customers
· Products: Web hosting, E-commerce, Application hosting, Dedicated Internet
Access including DSL, Virtual Private Networks, Remote Access

Consumer Reseller Partner
· Type of Reseller: Value Added Reseller, or any business who
wants to connect with their customers online

· Market: Consumers or customers who need dial-up Internet access
· Products: Dial access, branded to Concentric or branded to the reseller

Strategic Partners

Covad Communications Company is the leading provider of high-speed, always-on Digital
Subscriber Line (DSL) based services with increasing coverage in metropolitan areas across
the country. In partnership with Covad, Concentric is offering value-added,
business-quality DSL services for small- to medium-sized businesses. With ConcentricDSL
businesses enjoy a simplified ordering, provisioning, installation and billing process, in
addition to a complimentary Web hosting account.

Cyber Cash Inc., the world leader in e-commerce technologies and services for merchants,
entered an agreement with Concentric to deliver a completely integrated solution that will
make it easy for small- and medium-sized businesses to conduct real-time, Internet
transactions. This new best-of-breed solution will streamline the process of bringing an
e-commerce site online, and make it easier and more cost effective for businesses to take
advantage of robust online credit card processing capabilities.

Through our strategic relationship with GRIC Communications Concentric offers
international roaming, and soon corporate remote access and VPNs, to its customers through
the GRIC Network. With the addition of GRIC's more than 1.800 POP's in over 70 countries,
the Concentric IP dial network now reaches most of the business critical markets around
the world.

Concentric's partnership with GX Networks, owned by parent company Internet Technology
Group (ITG) - the largest independent ISP in the UK, enables Concentric to take advantage
of GX Networks extensive peering agreements and physical POPs within Europe. The
relationship gives Concentric customers more robust Internet connectivity in the U.K. and
access to custom-built Web hosting facilities in London. In addition, it gives Concentric
access to over 32 POPs in England, Scotland and Wales.

Intershop Communications is a leading provider of electronic commerce products, provided
the core e-commerce capability for the ConcentricHost™ platform, streamlining and
simplifying the process of launching an e-commerce site for small and medium-sized
businesses. Through the power of INTERSHOP's ePages cartridge for the INTERSHOP 3 Hosting
Edition, ConcentricHost customers can easily construct an online catalog. Moreover, users
can effectively monitor their e-commerce initiatives through extensive back office,
inventory tracking, customer management and reporting tools.

Kleiner Perkins Caufield & Byers a venture capital firm based in Menlo Park, California,
made a strategic investment in Concentric. Since 1972, the firm has raised over $1.2
billion in capital and has invested in companies whose total market value exceeds $80
billion. One of the most important elements within KPCB's concept of value-added investing
is access to shared information through a network of more than 175 companies and thousands
of executives.

Microsoft's products and services for business and personal use are designed with the
mission of making it easier and more enjoyable for people to take advantage of the full
power of personal computing every day. Concentric has joined forces with Microsoft on
several projects, including the launch of the Internet Explorer browser, the creation of a
suite of Concentric services based on Microsoft BackOffice Small Business Server, and the
NetShow client for streaming video applications.

Recently, Microsoft and Concentric expanded our relationship by adopting five major
initiatives. The initiatives represent our dedication to offering best-of-class,
value-added services to our customers and being a one-stop source for information and
Internet services. The initiatives include a co-branded version of the MSN™ portal for
Concentric's dial-up and DSL subscribers; the development and co-marketing of Microsoft®
Windows NT® Server-based application hosting services; a $7.5 million commitment by
Concentric to advertise and promote its services via the MSN network of Internet services;
a $50 million investment by Microsoft in Concentric; and a two-year extension of
Concentric's current contract to supply network services to WebTV®.

My Software Company's Internet services help companies find new customers and grow their
businesses using the Internet. Through our strategic partnership, MySoftware will co-brand
Concentric's Web hosting and e-commerce services and offer them through direct marketing
efforts to its more than one million registered small business users, as well as its
extensive retail distribution channels. Similarly, Concentric will provide its Web hosting
and DSL customers with MySoftware's Internet direct marketing tools.

Netopia Inc., a leader in providing Internet and E-Commerce infrastructure to small and
medium size businesses, provided Concentric the browser-based site building technology
behind ConcentricEasySite. This site builder tool allows businesses to easily create their
Web site with access to professionally designed pre-formatted vertical market content,
graphics and picture libraries. As part of the relationship, Netopia also selected
Concentric as its exclusive Web hosting provider. This dedicated hosting arrangement will
provide Netopia with secure Web server facilities, scalable bandwidth to the Internet and
round-the-clock server monitoring, management, file-system backup and reporting services.

Nortel Networks offers high-performance networking equipment to support dial-up and
dedicated access connections, and to support internal routers within the backbone. Using
Nortel Networks backbone and remote access routers, intelligent hubs, remote access
servers and network management solutions, the Concentric network is a high-functionality,
high-performance solution for virtual private networks and other intranet and extranet

North Point Communications is one of the nation's fastest growing competitive local
exchange carriers (CLEC) focused on delivering high-speed Internet access to businesses.
Concentric's partnership with NorthPoint delivers DSL services to small and medium-sized
businesses nationwide. These services provide dedicated bandwidth at speeds from 160 Kbps
to 1.54 Mbps at highly competitive prices. As a value-added service, Concentric also
provides a Web hosting account plus simplified ordering, installation, and billing.

Register.Com is one of the largest domain name registrars on the Internet. Through a
strategic partnership, our two companies will make it simpler for small- and medium-sized
companies to register domain names while beginning the process of creating and hosting web
sites. This cross-marketing effort will lead customers at the register.com site to
information about ConcentricHost services. In addition, Concentric's Web site has a link
to register.com and utilizes their services to register and reserve a domain name.

SBC Communications is a global telecommunications leader, with more than 34.5 million
access lines and over 5.9 million wireless customers across the United States. SBC is
integrating Concentric's Internet-based business data services and technology into its
growing portfolio of data products and services for business customers. Plans call for
Concentric and SBC to accelerate deployment of a complete suite of packet-switched,
Internet Protocol (IP)-based services such as virtual private networks, Web hosting,
shared software and electronic commerce for business customers.

Telecom/TeleMedia International a member of the Telecom Italia group, the sixth largest
international carrier with world wide sales of over $20 billion. Together Concentric and
TMI have built mondonet, the first global IP network designed expressly to support Virtual
Private Network services. MondoNet has over 50 POPs in 28 countries on four continents.

Teligent Inc. is a full-service, integrated communications company that offers small and
medium-sized businesses local, long distance, high-speed data, and dedicated Internet
services over its Digital SmartWave™ local networks. Concentric's nationwide ATM
backbone is providing the interconnectivity for Teligent's digital wireless networks,
enabling the delivery of high speed, Internet-based services.

Williams Communication Group is an international provider of multimedia network services
and business communications solutions. Williams and Concentric have agreed to distribute
products and to utilize each other's network services and support operations.
Specifically, Concentric is working with Williams to distribute services through their
extensive sales force and established customer base of more than 120,000 sites. Concentric
is also purchasing access to Williams nationwide fiber-optic network in order to enhance
the functionality of its own network applications.

Concentric Network Corporation provides complete, easy-to-use Internet business solutions
for small to medium-sized companies and customized Virtual Private Network and data center
services for larger organizations. Concentric's portfolio of services for small to
medium-sized companies includes high-speed DSL access, Web hosting and e-commerce. For
larger organizations, the company offers dedicated Web hosting services and VPN solutions
that enable an organization to securely and reliably communicate with its offices, mobile
sales force, business partners, vendors and customers.

Concentric offers a comprehensive portfolio of Web hosting and e-services for small and
medium-sized businesses, as well as high capacity data center solutions for larger
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