IBM, Qwest Collaborate on Web Hosting Services

Jim Martin

In a move that could have longstanding effects on the Web hosting market, IBM has joined forces with Qwest Communications International Inc. in the form of a multi-year initiative to deliver next generation e-business services and applications through the creation and deployment of new Qwest CyberCenters. Both sides expect revenue to reach more than $5 billion from the deal.

Under terms of the agreement, IBM Global Services will build and provide operational support for 28 new CyberCenters over the next three years. By the end of 2000, Qwest plans to have 14 CyberCenters in operation will have a total of 42 in Canada and the U.S. once all the IBM-built CyberCenters are completed.

“Our strategic relationship enables next-generation services for customers by bringing together the industry’s best information technology and services and from IBM with one of the world’s best broadband Internet networks,” says Lew Wilks, Qwest’s president of Internet and multimedia markets. “We will improve customers’ financial performance, lower their capital costs and cut the time needed to introduce new e-business services. All of this, while providing one of the industry’s most secure, highly scalable solutions.”

IBM and Qwest will deliver a wide range of e-business services all under one roof and will offer end-to-end service level agreements to cover the entire Web transaction process. Among its target customers are dot-com companies, Fortune 1,000 companies migrating their business to the Web, and application service providers (ASPs).

According to IBM, it will enhance its service offerings to other Web hosting customers in existing IBM Internet data centers by adding connections to Qwest’s nationwide network.

“This alliance represents an important step in expanding IBM’s spectrum of Web hosting services, from basic colocation to managed services to fully outsourced operations. We will use our experience in managing complex Web sites to help our customers choose the best mix of services for their needs,” says Doug Elix, IBM senior VP and group executive, IBM Global Services. “Our alliance with Qwest demonstrates how leaders in the information technology and telecommunication industries can collaborate to help companies worldwide become e-business.”

Related Information:

  • Qwest Communications International Inc. (new window)