BT is joining forces with venture capitalist company 3i to form a network performance management software company.
The new company will develop a software suite codenamed Napoleon which will enable businesses to improve the management and delivery of e-services.
Napoleon, developed by BT engineers, has applications in network monitoring and troubleshooting, network traffic generation and network emulation. The suite can introduce network faults and errors for test purposes.
BT will hold a 37.5 per cent equity stake in the new company and 3i will invest an initial £1.7m for a similar stake. The balance of the equity will be held by management and employees.
"BT is highly regarded for its research and development,and we are delighted to be its partner in this pioneering spinout which may pave the way for other similar ventures," said Robin Winning, 3i investment executive.
"The new company has a world-beating technology and is well placed to grow as the market for network performance software takes off," he added.
According to the companies, the global market for network systems management is expected to grow rapidly over the next three years. New e-services, such as online training, desktop video conferencing and knowledge management systems, are expected to increase demand for network performance software.
Also this week BT and AT&T announced they will spend £1.25bn over the next three years building 30 additional data centres worldwide. The companies said they will link the data centres to an international telecoms network based on internet protocol technology. The investments will give them 44 data centres in total.
Comcast's £29.7bn winning bid more than twice the £13.7bn Rupert Murdoch valued Sky at just eight years ago
A nuclear strike has been considered, but Bruce Willis is nowhere in sight
Spray-on antenna could enable seamless integration of antennas with everyday objects
Parker Solar Probe, TESS and GOLD missions will deliver exciting data, claims NASA