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NaviSite Announces Alliance With Intel
2008-04-11
NaviSite to Provide Hosting Services Offered Through Intel to the Value Added Reseller Network

ANDOVER, Mass., April 9, 2008 - NaviSite, Inc. (NASDAQ: NAVI), a leading provider of applicationsolutions and managed services, announced today an alliance with Intel Corporation to offer a suite of managed services sold through Intel’s value added reseller (VAR) community. The Hosting Service offered through Intel will provide resellers with a comprehensive menu of services to market under their own brands and satisfy the growing demand for such services in the small and medium business (SMB) segment. In addition, NaviSite will assist the resellers in making the business transition to becoming managed service providers by providing the necessary delivery, technical, marketing, and sales support.

The portfolio of reseller services provided by NaviSite includes hosted email services with filtering and archiving, hosted collaboration suite for online information-sharing, online backup, and remote monitoring and management services for all IT assets, including client servers and network devices. Not only will the program allow resellers the flexibility to select the right service combination to meet their customers’needs, they will also have the added benefit of dealing with a single provider in NaviSite, thus avoiding compatibility and resolution issues for their customers.

“We are very excited about our alliance with Intel,” said Arthur Becker, Chief Executive Officer at NaviSite.“The Hosting Service offered thorough Intel and enabled by NaviSite will tap into Intel’s extensive VAR network to offer the broad suite of managed services offered by NaviSite—extending and deepening the relationship of the VAR to its customer from that of a traditional break/fix vendor to that of an ongoing service provider.”

NaviSite was tapped by Intel to enable its managed service offering, based on NaviSite’s deep expertise and capabilities in providing managed services and application solutions to the SMB and Mid-Market companies for more than 11 years through its network of 18 state-of-the-art data centers in the U.S. and the U.K., along with innovative technologies and a suite of services specifically designed to serve this market segment.

For resellers who have previously been unable to tap into this fast-growing market, this program presents a unique opportunity to extend their business into managed services. “Resellers have been asking us for a firm blueprint to enter the services area,” said Steve Dallman, Vice President of Intel’s Sales and Marketing Group and General Manager of Intel’s Worldwide Reseller Channel Organization. “They want to minimize the unknowns, lessen the upfront investment and lower the risks. We have listened to our channel partners and are empowering our channel partners to become solution providers,” he said.

The market for managed services among SMBs represents the largest area of growth in this segment. Tier 1 Research1, the independent research and consulting firm covering public and private companies within the IT industry, reports that managed hosting remains the largest segment within this sector and will continue to grow at a rate of 24 percent. According to Tier 1, SMBs and Mid-Market enterprises are fueling this growth in hosting services.

About NaviSite
NaviSite is a leading provider of application solutions and hosting services. More than 1,500 customers depend on NaviSite for application development, implementation and management on its web infrastructure platforms in 18 state-of-the-art data centers supported by more than 700 professionals. NaviSite provides customized and scalable solutions leveraging its broad range of application development capabilities, packaged software implementation expertise, deep portfolio of best in class technologies and a full suite of web-hosting and internet infrastructure options. For more information, please visit www.navisite.com.

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