July 9, 2002Strengthening Business Ties for Expanding LonWorks® Business- NTT DATA and Echelon Form OSA (Open System Alliance) Agreement -
NTT DATA Corporation
Echelon Japan K.K.
NTT DATA Corporation (Head office: Koto-ku, Tokyo, president and CEO: Toshiharu Aoki, hereinafter referred to as "NTT DATA") and Echelon Japan K.K. (Headquarters: Shibuya-ku, Tokyo, president: Lawrence Chan, hereinafter referred to as "Echelon") entered into an OSA (Open System Alliance) agreement on June 26, 2002, regarding LonWorks® (see note 1), an intelligent distributed control network technology used in a variety of fields such as transportation and home automation as well as facilities management for office buildings, factories, stores and the like.
Based on its well-established IT-related technology and SI (system integration) know-how, NTT DATA has adopted LonWorks as a technology for bringing BA (building automation) system architecture from a closed system to an open system. NTT DATA has been providing building automation system development services since April 2000. Through this agreement, NTT DATA will work to expand LonWorks network-related businesses.
Echelon, through this agreement, seeks to achieve further market penetration of LonWorks by establishing a more broad-based partnership with NTT DATA, Japan's largest vendor of SI services. NTT DATA will develop applications for LonWorks, which has a wide range of applicability, leveraging NTT DATA's track record of integration in the field of BA, thereby seeking to grow the market for LonWorks.
OSA Agreement Defined
To promote the growth of open systems with LonWorks technology as its core, Echelon has developed its Alliance Program. This agreement provides a mechanism for Echelon to certify companies that can serve as engines for the diffusion of open systems using LonWorks as MLLs (master logo licensees). By entering into this agreement, NTT DATA will serve as an MLL. An MLL certifies integrators (companies able to integrate open systems using LonWorks), provides support, and engages in other activities just as Echelon itself does.
An integrator that has been certified by an MLL under an OSA agreement is called a LonWorks Integrator (LI), enabling it to receive marketing and technical support regarding LonWorks technology from the MLL. NTT DATA will be able to sell all of Echelon's products as well as support the development of LonWorks products.
Specific Activities of NTT DATA
Considering the size of the large measuring instrument companies' business, the size of the market for building management equipment is about 200 billion yen annually. The implementation of LonWorks, which enables architectures that used to be black boxes to become open, is expected to become increasingly popular in the future.
By entering into this agreement, NTT DATA will certify as LIs companies that have a track record and strengths in the field of automation. Leveraging the LonWorks integration activities it has engaged in to date, NTT DATA will form cooperative relationships with the LIs to strengthen the BA integration activities in which it has long been active. It will also pursue the expansion of the LonWorks business in such wide-ranging fields as FA (factory automation), HA (home automation), the environment, medical care, agriculture and others as the LIs bring their respective strengths to the business. During the first year, partnership agreements with about 15 integrators are expected to be formed.
In addition to its ongoing LonWorks integration activities, NTT DATA will market to the LIs LonWorks products created by Echelon, and it will develop and sell LonWorks-compliant products under its own brand. By combining NTT DATA's expertise in network technology and the individual business know-how of the NTT DATA-certified LIs, it will be possible for NTT DATA to convince manufacturers to develop products that incorporate the requirements of the customers of the LIs. For example, it will be possible to create LonWorks-compliant products in the fields of lighting or air conditioning. Moreover, by developing a technical support system for companies actively developing LonWorks-compliant products, NTT DATA will strive to grow the market for LonWorks-compliant products. By so doing, NTT DATA will target the development of new markets for LonWorks integration.
NTT DATA will also actively strive to build the market for LonWorks equipment certified by the LonMark® Interoperability Association (see note 2), working forcefully to expand the market for LonWorks products not only in Japan, but also in China and other regions of Asia.
Specifically, the activities that NTT DATA will carry out through this agreement are the following:
Sales Target
Through this agreement, NTT DATA will aggressively promote LonWorks integration, with a target for total LonWorks-related orders during the coming three years of 20 billion yen.
Notes:
1. LonWorks
LonWorks is a network technology developed by Echelon Corporation that achieves intelligent, distributed control. It eliminates the limitations of traditional closed, layered systems, achieving an open, interoperable control system at low cost. Currently, it is used by about 5,000 companies worldwide, becoming the de facto standard for open control networks.
2. LonMark Interoperability Association
The LonMark Interoperability Association is a worldwide association established in 1994 to promote the development and spread of open, interoperable control network products. Its member companies now exceed 301. They include product manufacturers, integrators and end users in fields such as business, industry and the home. They range from the product level, such as sensors or actuators, to complex systems controlling buildings, homes, factories, rolling stock and machinery. The association determines specifications and guidelines for technical products, called LonMark standards, and it guarantees the interoperability of products designed according to the LonMark standards. Products certified compliant with the LonMark standards all carry the LonMark logo. In Japan, a certification center has been established in a tie-up with NTT DATA, enabling applications to be submitted in Japanese. The association has three types of members - Sponsors, Partners, and Associates - and it is run by a Board of Directors elected by the members. For the latest information on the association, please refer to http://www.lonmark.org/.
* LonWorks and LonMark are trademarks of Echelon Corporation registered in the United States and other countries.
Reference
Based on its well-established IT-related technology and SI (system integration) know-how, NTT DATA has adopted LonWorks as a technology for bringing BA (building automation) system architecture from a closed system to an open system. NTT DATA has been providing building automation system development services since April 2000. Through this agreement, NTT DATA will work to expand LonWorks network-related businesses.
Echelon, through this agreement, seeks to achieve further market penetration of LonWorks by establishing a more broad-based partnership with NTT DATA, Japan's largest vendor of SI services. NTT DATA will develop applications for LonWorks, which has a wide range of applicability, leveraging NTT DATA's track record of integration in the field of BA, thereby seeking to grow the market for LonWorks.
OSA Agreement Defined
To promote the growth of open systems with LonWorks technology as its core, Echelon has developed its Alliance Program. This agreement provides a mechanism for Echelon to certify companies that can serve as engines for the diffusion of open systems using LonWorks as MLLs (master logo licensees). By entering into this agreement, NTT DATA will serve as an MLL. An MLL certifies integrators (companies able to integrate open systems using LonWorks), provides support, and engages in other activities just as Echelon itself does.
An integrator that has been certified by an MLL under an OSA agreement is called a LonWorks Integrator (LI), enabling it to receive marketing and technical support regarding LonWorks technology from the MLL. NTT DATA will be able to sell all of Echelon's products as well as support the development of LonWorks products.
Specific Activities of NTT DATA
Considering the size of the large measuring instrument companies' business, the size of the market for building management equipment is about 200 billion yen annually. The implementation of LonWorks, which enables architectures that used to be black boxes to become open, is expected to become increasingly popular in the future.
By entering into this agreement, NTT DATA will certify as LIs companies that have a track record and strengths in the field of automation. Leveraging the LonWorks integration activities it has engaged in to date, NTT DATA will form cooperative relationships with the LIs to strengthen the BA integration activities in which it has long been active. It will also pursue the expansion of the LonWorks business in such wide-ranging fields as FA (factory automation), HA (home automation), the environment, medical care, agriculture and others as the LIs bring their respective strengths to the business. During the first year, partnership agreements with about 15 integrators are expected to be formed.
In addition to its ongoing LonWorks integration activities, NTT DATA will market to the LIs LonWorks products created by Echelon, and it will develop and sell LonWorks-compliant products under its own brand. By combining NTT DATA's expertise in network technology and the individual business know-how of the NTT DATA-certified LIs, it will be possible for NTT DATA to convince manufacturers to develop products that incorporate the requirements of the customers of the LIs. For example, it will be possible to create LonWorks-compliant products in the fields of lighting or air conditioning. Moreover, by developing a technical support system for companies actively developing LonWorks-compliant products, NTT DATA will strive to grow the market for LonWorks-compliant products. By so doing, NTT DATA will target the development of new markets for LonWorks integration.
NTT DATA will also actively strive to build the market for LonWorks equipment certified by the LonMark® Interoperability Association (see note 2), working forcefully to expand the market for LonWorks products not only in Japan, but also in China and other regions of Asia.
Specifically, the activities that NTT DATA will carry out through this agreement are the following:
- LI certification and technical support for the LIs
- Promotion of LonWorks open systems through joint marketing with the LIs
- Support for the development of LonWorks-compliant products by equipment manufacturers
- Sales of Echelon's products and development and sales of NTT DATA's own products
- Fostering technical staff by holding LonWorks training sessions
Sales Target
Through this agreement, NTT DATA will aggressively promote LonWorks integration, with a target for total LonWorks-related orders during the coming three years of 20 billion yen.
Notes:
1. LonWorks
LonWorks is a network technology developed by Echelon Corporation that achieves intelligent, distributed control. It eliminates the limitations of traditional closed, layered systems, achieving an open, interoperable control system at low cost. Currently, it is used by about 5,000 companies worldwide, becoming the de facto standard for open control networks.
- Open System
- The term refers to an interoperable network consisting of products from multiple vendors. Contrasted with a traditional closed, inflexible, complex and expensive in-house system, an open system enables high flexibility, scalability and low life-cycle cost that are very advantageous for the customer (end user).
2. LonMark Interoperability Association
The LonMark Interoperability Association is a worldwide association established in 1994 to promote the development and spread of open, interoperable control network products. Its member companies now exceed 301. They include product manufacturers, integrators and end users in fields such as business, industry and the home. They range from the product level, such as sensors or actuators, to complex systems controlling buildings, homes, factories, rolling stock and machinery. The association determines specifications and guidelines for technical products, called LonMark standards, and it guarantees the interoperability of products designed according to the LonMark standards. Products certified compliant with the LonMark standards all carry the LonMark logo. In Japan, a certification center has been established in a tie-up with NTT DATA, enabling applications to be submitted in Japanese. The association has three types of members - Sponsors, Partners, and Associates - and it is run by a Board of Directors elected by the members. For the latest information on the association, please refer to http://www.lonmark.org/.
- LonMark Logo
- The purpose of the mark is to guarantee the interoperability of products from multiple vendors that have been certified by the LonMark Interoperability Association. The Association certifies that the products developed by its members are compliant with LonMark standards, and it authorizes the certified products to carry the LonMark logo as proof of their interoperability.
- Interoperability
- The term refers to the situation wherein products from differing manufacturers have been designed and manufactured according to common interface guidelines so that they will work together in a single system.
* LonWorks and LonMark are trademarks of Echelon Corporation registered in the United States and other countries.
Reference
- News Releases.
- The services, prices of products and services, specifications, telephone numbers, etc. for inquiries and other information included in news releases are the data available on the day of the release. This information may be changed at any time without notice. In certain circumstances, due to various risks or unexpected occurrences, actual results may also be different from the plans or projections in news releases.
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