Qwest Communications today announced a data storage agreement with Hewlett-Packard to support the network operator's Web hosting push.
The deal is expected to add as much as $1.5 billion in Web-hosting revenue to Qwest's coffers over the next three years, the companies say. In the first year alone, Qwest says it hopes to see revenue of $200 million.
Under the terms of today's agreement, Qwest will build its data storage facilities around HP's SureStore E offerings.
In related news, Qwest also says it has started aggressively expanding its two existing CyberCenter data center facilities. Qwest's expansion plan also calls for the establishment of seven new centers by the end of 2000 to meet growing customer demand for application hosting, electronic commerce and Web hosting services, according to the statement.
The company will deploy HP's storage hardware and management software in both its existing as well as planned CyberCenters, Qwest said. HP in turn will integrate and co-market Qwest's storage services as part of its e-services portfolio aimed at businesses, the statement says.
Qwest will face stiff competition in the Web hosting arena, not only from fellow network operators, but also from new entrants such as chip giant Intel, which just announced a major data center push.
At a related event in Tokyo, Intel officials announced plans to build 12 data centers worldwide. The company expects to invest around $1.5 billion to build the centers over the next few years.
Hewlett-Packard, in Palo Alto, Calif., can be reached at 650-857-1501, or on the Web at http://www.hp.com/. Qwest, in Denver, Colo., is at http://www.qwest.net/.
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