EDS, CSC Offer Web Hosting, Net Mgmt. Services

FRAMINGHAM (03/03/2000) - Traditional outsourcing vendors are rushing to offer Internet services. Last week, two of the biggest - Electronic Data Services Corp. (EDS) and Computer Sciences Corp. (CSC) - launched initiatives offering application hosting and network management services.

Another major outsourcing rival, IBM Corp., already offers services in these areas.

Plano, Texas-based EDS is calling its initiative the Web Computing Suite of Services. It will package Web hosting and network management services that range from fixed-price offerings to custom engagements with large companies.

CSC in El Segundo, Calif., is setting up a similar Web site hosting and online application provisioning unit targeted at corporate and government customers.

Like EDS, CSC will offer fully managed services on Unix and NT platforms with around-the-clock services, including security, conditioned facilities, high-speed network access and integrated service management. And like EDS, CSC is hoping to cash in on its existing hardware infrastructure and networks to deliver the new services.

"What they are trying to do is make use of their very deep IT skills and services and deliver it more cost-effectively to end-user organizations," said Andrew Efstathiou, an analyst at The Yankee Group in Boston.

EDS's new offerings are aimed at its existing clients as well as dot-com companies and medium-size businesses, said Tom Ament, an EDS vice president.

Under its fixed-price schemes, typical Web site hosting fees will range from $300 to $600 per month per server, while subscription-based application provisioning services range from $125 to $600 per user.

Wholesale Model

EDS will use its existing data centers and system infrastructure worldwide to offer the new services either directly to clients or through what it calls a "wholesale" model to other application service providers and dot-com companies.

"Where others are talking of spending tens of millions of dollars in building a hosting infrastructure, we plan to spend hundreds of millions on top of that to deliver new services," Ament said.

CSC's global hosting service, will feature dual firewalls, continuous intrusion detection, security-hardened operating systems and virus detection.

"[CSC's] experience in providing secure, mission-critical systems to the federal government and others allows us to implement unmatched security features that are essential to the e-business needs of clients," CEO Van B.

Honeycutt said.

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