IBM sets up $450m e-business hosting centers with AT&T
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In a $450 million deal, IBM is to establish nine e-business hosting centers to accommodate an increasing demand for e-business services.

The centers will be established at AT&T Internet data centers in New York, Chicago and Phoenix by the end of the year. Other locations will be determined later.

Target customers for the centers include large companies setting up businesses on the Internet, dot-com companies, e-marketplaces and application service providers.

Doug Elix, IBM senior vice president, said: “As enterprises – especially those born on the Net – sharpen their focus on core competencies, the demand for ‘e-sourcing’ will continue to grow.”

Rick Roscitt, president of AT&T business services, said, “Our Internet data centers are the next generation central offices for e-businesses. This multi-year deal will enable IBM to provide the services e-business needs for mission-critical applications.”

Customers will have fully redundant connections to AT&T’s OC-192/OC-48 IP network as well as the performance and bandwidth they need. They also will have access to the IBM e-business hosting centers via asynchronous transfer mode (ATM) and frame relay services, which will be delivered by AT&T.

The companies also announced they will bundle and market web hosting solutions.



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