MEMO OF UNDERSTANDING
This memo of understanding between Stratus Computers and Tekelec signals the
introduction of a unique and valuable partnership to the AIN marketplace. The
combination of Tekelec's proven SS7 and STP knowledge and expertise and
Stratus' industry proven SINAP product and application solutions will bring to
the targeted market(s) integrated "total" AIN solutions. In addition, a
"single point of contact" multivendor environment will be offered to the
In is envisioned that over time the relationship will evolve from an initial
marketing alliance to one undertaking joint product development and
integration. For example, a product offering the features and functions of
both an STP and SCP in a single, fault tolerant, scalable system combined with
the benefits of a single Service Creation Environment could result and be
brought to the market.
One of the first objectives of the alliance will be the joint definition and
identification of the target market(s). This activity will include the
quantification of the number of accounts targeted by year as well as the
specific applications to be offered. In general, the early targets of the
alliance are believed to be the smaller Local Exchange Carriers (LEC) and
Independent Telephone Companies (ITC) as well as alliances involving multiple
LECs and ITCs. Included in this effort will be the following activities and
1. Applications required The specific applications and services required by the targeted market(s) will be
identified. This will include an estimate of the number of licenses of each application
and/or service to be sold by year by target market.
2. Market Segmentation The classification of the total possible market into market segments based upon such
variables as number of access lines served, construction budget funds, performance
requirements, motivation, state of SS7 deployment, expected in-service dates, etc.
3. Target Market Req. A definition of the requirements for each of the target market segments identified in
4. Solution Packaging How the alliance "solution" will be packaged and presented to each of the targeted markets.
5. Competition The identification of the competition, positioning alliance against, strengths and
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6. Qualification profile For each of the target market segments a profile
will be developed. It is intended that this
profile will be used as a tool to qualify each
specific opportunity presented to the alliance
and to identify the appropriate solution approach.
It is the intent of the alliance to present to the marketplace the
establishment and ongoing evolution of the alliance via several mediums which
o Joint press releases
o Trade/Industry/Market forums, tradeshows, seminars, etc.
o Industry association contacts (Comptel, OPASTCO, USTA, etc.)
Representatives from Stratus and Tekelec will jointly determine the content of
these items and events.
MARKETING AND SALES ACTIVITIES
It is expected that sales opportunities will be introduced to the alliance by
both Stratus and Tekelec sales personnel. Over a period of time, each sales
organization will become proficient in the presentation of each other's
products so that each sales group can present the total solution independently,
but for the first several opportunities joint sales call participation is
anticipated. In addition, joint sales calls when appropriate will always be an
For those accounts target by the alliance, Stratus and Tekelec will act as a
single team to the customer. Prime point-of-contact will be determined on a
case-by-case basis as determined by Stratus and Tekelec marketing.
Coordination and logistics of sales presentations, the generation of quotations
and pricing and discount strategies will be the mutual responsibility of
Stratus and Tekelec marketing.
The alliance must continue to be flexible in its approach to the market place
in the area of product support. To a large degree, the needs and requirements
of the customer will dictate the appropriate approach to be used in providing
product support. It is the intent of the alliance to allow the continued
provision of each parties' current methods and options of providing support to
customers. This philosophy includes but is not limited to extended warranty
packages, system acceptance assistance and network interoperability activities
support. Stratus and Tekelec will continue discussions exploring strategies
and approaches to providing post-sales support.
October 19, 1994
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PRODUCT STRATEGY PLANNING
As mentioned previously, Stratus and Tekelec will commit to explore the market
opportunities and requirements which may be addressable by the development of
an integrated AIN platform(s) utilizing Tekelec and Stratus technologies.
Network elements may include Service Nodes/Intelligent Peripherals, Service
Control Points, etc.
Neither party grants or accepts any exclusivity arrangements to or with the
TERM OF AGREEMENT
This agreement shall be for a term of 1 year from date of signing. The
agreement shall automatically renew at its 1 year anniversary date unless
terminated by either party, such termination having been executed by written
notice to the other party at least 120 days prior to requested date of
termination. No cause by the requesting party is required for the termination
to be effective.
Signed this 27 day of October, 1994.
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Tekelec: Allan Toomer
Allan Toomer, Senior Vice President
Stratus: William D. Hays
for Bill Elliott, Vice President
October 25, 1994
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