Telecom has closed the doors on its virtual company esolutions - folding it into its Advanced Solutions Group (ASG).
The "alliance" of Telecom, EDS and Microsoft was created in February 2000 and supposed to usher in a new era of online services via its ASP model. However as that market faltered, esolutions reinvented itself as an "e-commerce infrastructure provider".
Now however, esolutions is to become part of the Telecom Advanced Solutions Group with ASG head Chris Quin taking over the reins from Sue McCarty.
Telecom spokeswoman Mary Parker says McCarty is "working with [chief operating officer] Simon Moutter with respect to what her future options are and she'll also be assisting Quin with the transition."
Parker says no decision on lay-offs has been made yet.
"At this stage it's a business decision and we haven't yet made any decision on how it will impact on our people."
The new group, which has yet to be named, will strengthen the alliance, says Parker.
"It will focus more on delivering products. It will do what esolutions has done well but even better."
A statement from partner company EDS suggests business as usual for alliance partners.
"The esolutions alliance ... is unchanged and EDS - along with our partners - are committed to maintaining our service". The statement goes on to say that future esolutions developments "will be strongly integrated with Telecom's overall solutions development initiatives".
Microsoft was unavailable for comment.