London – January , 2009

Sterling Commerce, an AT&T Inc. (NYSE:T) company, today announced results of pan-European research investigating the factors that will drive companies to consider and adopt cloud-based business-to-business (B2B) integration services. The research, carried out amongst 300 senior information technology (IT) managers across France, Germany and the UK, found that 72 per cent of respondents plan to invest in a cloud-based B2B integration strategy as a means of delivering cost savings and the ability to scale infrastructure. France and Germany lead the way, with 72 and 77 per cent respectively claiming they will invest in this area within the next 12 months.

Survey respondents identified the following benefits in moving to cloud-based B2B integration services:

• Over 50 percent of respondents indicated they will drive down operating costs through better use of IT staff and better cost predictability
• More than 35 percent of respondents indicated they will reduce errors resulting from manual processes, noting that manual processing creates the largest hindrance in their current B2B integration capabilities
• Approximately a third of all respondents expect to achieve greater visibility into their B2B processes

“The research confirms that companies are now ready to take advantage of the flexibility and scalability of cloud-based B2B integration solutions and embrace the ‘pay-for-use model’ that cloud computing represents,” comments David Carmichael, Senior Product Marketing Manager at Sterling Commerce.

Gartner estimates that worldwide cloud services revenue will increase from $46.4 billion in 2008, to $150.1 billion in 2013. More specifically for integration as a service (IaaS), Gartner estimates that companies worldwide spent more than $1.5 billion on IaaS and B2B integration outsourcing in 2009. The purchase of integration services is expected to expand greatly over the next five years, driving companies to consider their strategy in this area in order to take maximum advantage of B2B services in their implementation of B2B projects.

The research also found that 65 percent of all respondents identified security as the most important concern when considering a cloud-based B2B integration service. “This is testament to wider industry concerns associated with cloud computing,” continues Carmichael. “Contractual agreements can only go so far when taking responsibility for the security of systems and data when moving to a cloud-based service, so integration service providers need to demonstrate credibility to create trust with customers. Sterling Commerce has worked for over 30 years with the top Fortune 500 companies to build that trust; leading the way in the evolution from B2B integration to the fully-established, secure, cloud-based B2B services.”

The research also highlighted the importance of the B2B integration vendor providing choice as to whether the solution is implemented and delivered on premise, on-demand or fully managed; with only eight percent of respondents stating this was unimportant.

“In today’s economy, companies are becoming acutely aware they need to optimise their B2B integration capability to reduce costs today and become more agile for competitive growth tomorrow. Achieving this at a time when few Boards are prepared to entertain a project without a guarantee of an ROI, typically within a 12-month window, the ability to move from a capital expense to an operational one makes cloud-based B2B integration compelling,” concludes Carmichael.