IBM, Qwest to Build E-Commerce Data Centers

LONDON (03/27/2000) - IBM Corp. and Qwest Communications International Inc. have signed a multi-year deal to build electronic-commerce data centers, the companies said in a statement today.

IBM's Global Services group will build the centers, called CyberCenters, for Quest, and the companies expect them to generate an estimated US$5 billion in revenue. All profits from the project will be divided evenly between the two companies, the statement said.

IBM will become the anchor tenant in each center that it builds, and will also purchase hosting facilities for its e-commerce customers. Services offered by the CyberCenters, which will be directly connected to Qwest's broadband network, will include collocation, Web hosting and ASP (application service provider) platforms.

IBM will build and provide operational support for 28 new centers over the next three years. Centers in Dallas; Philadelphia; Sterling, Virginia and San Jose, California are expected to be operating later this year. By the end of this year, Qwest hopes to have 14 CyberCenters in operation throughout the U.S., the statement said.

There will be a total of 42 CyberCenters built during the three-year contract period, Qwest said.

IBM has also agreed to upgrade its current IBM Internet data centers by adding connections to Qwest's high-speed network.

Earlier this month, Cable & Wireless Communications PLC announced it would launch similar plans in the U.K., Japan and the U.S. [See "C&W to Build $158M Web Hosting Center in U.K.," March 2.]Qwest, in Denver, Colorado, can be reached at +1-303-291-1400 or at IBM, in Armonk, New York, can be reached at +1-914-765-1900 or on the Web at

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