LONDON and REDMOND, Wash. -- LogicaCMG plc and Microsoft Corp today announced that they have formed a strategic relationship based on the strong commitment from both companies to launch an initiative called “The Service Factory.”

The Service Factory is a new programme designed to establish and operate a world-class service creation and delivery environment using proven partner products alongside Microsoft® Connected Services Framework. In close cooperation with LogicaCMG developers, partners, independent software vendors and operators, an extensive set of innovative services will be developed ready for deployment in a telco-grade environment. The Service Factory will enable telecommunications companies to deliver innovative, converged services with a consistent user experience across domains, and to embrace the Telco 2.0 concept by empowering network-based mashups.

The ability of operators to efficiently and cost-effectively develop and deploy next-generation services is essential to the further development of the industry. Microsoft Connected Services Framework is a server-based software product that provides the foundation to aggregate, deliver and manage different services, whether traditional telecommunications services such as voice and data, web services or third-party content services. It offers a network-independent, flexible service creation and delivery environment that is accessible to one of the largest IT professional and developer communities in the world.

As a long-term Microsoft ally, LogicaCMG has invested heavily in Microsoft Connected Services Framework and will bring its extensive telecommunications expertise to the relationship.

“The telecoms sector is under intense pressure, and operators are looking for competitive advantage at every turn,” said Thomas Breuer, managing director of Telecoms and Media at LogicaCMG. “To do this quickly and remain one step ahead of the competition on a global scale, operators are looking to the larger IT suppliers for innovation and economies of scale. This relationship between LogicaCMG and Microsoft offers exactly that. Combining LogicaCMG’s total service provision, global reach and more than 2,500 experienced professionals with Microsoft’s proven pedigree and established services will help operators get a much faster time to market for new services.”

LogicaCMG plc (London/Amsterdam: LOG)

Microsoft Corp. (Nasdaq: MSFT)