Exodus Communications Inc. Tuesday announced its Japanese subsidiary, Exodus Communications K.K., has aligned with Nomura Research Institute Ltd. to amplify its Web hosting services in Japan. Established in 1965, NRI is a leading Japanese "think tank" and system integrator that posted worldwide sales of more than US$1.5 billion last year.
Exodus (Nadaq: EXDS) and NRI intend plan to collaborate on Internet consulting and Web hosting services. The two also intend to pair-up to provide network connectivity and related managed services.
The alliance will enable Exodus to expand its Tokyo Internet data center and its piece of the Asian Web hosting business, as the two companies also into venture into joint marketing efforts.
Ellen M. Hancock, Exodus president and chief executive officer, said the alliance with NRI would simplify its Asian expansion plan.
"NRI's talented staff and Internet consulting expertise will enhance Exodus' entry into the Japanese market," Hancock said.
Shozo Hashimoto, NRI president and chief executive officer, said Exodus would be an enthusiastic partner imperative to delivering advanced Web services.
"The Internet hosting market is of utmost importance to the development of the Internet in Japan," Hashimoto said. "We selected the leader and we are very enthusiastic about the prospects of working with Exodus to enhance the Internet in Japan."
To facilitate the deal, Exodus Communications plans to purchase a 157,000 square foot building in Tokyo as host for its new data center. The facility will also be the home of its Japanese corporate headquarters by the first half of 2000.
Roger Boisvert, Exodus Communications, K.K. president and representative director, said Exodus plans to dominate the Web hosting market in Japan.
Boisvert added: "The proposed alliance with NRI should position Exodus to support the growing needs of the Japanese market for comprehensive Internet hosting services."
Exodus Communications, K.K. network within Japan currently includes network exchange points with 38 Japanese ISPs.
