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IBM, Alcatel Enter Into Data Delivery Deal

Alcatel Alsthom S.A and IBM Corp. Monday formed a pact integrating their information technology and communications software to build a system of advanced networking solution centers.

The companies plan to construct a series of Internet data centers to operate as hubs for their collective infrastructures. Construct costs could exceed $100 billion during the three-year buildout.

IBM Global Services, a division of IBM , will integrate Alcatel's communications solutions into its U.S. and European enterprise services.

Georges Khoury, IBM Global Services general manager, said demand for data delivery and storage has never been higher.

"This important agreement brings two leading companies together to meet a very important goal for customers, make it possible for them to deploy and manage the systems and network technologies they need, whenever and wherever they need it," Khoury said.

Olivier Houssin, Alcatel e-business group president, said the companies would target application service providers to fill the forthcoming data centers.

"Through this relationship with IBM, Alcatel is committed to accelerate the deployment of e-business solutions in the ASP and Enterprise market," Houssin said.

Last week IBM announced it would partner with Compaq Computer Corp. to develop and sell computer network data storage products.

The two companies intend to take on computer storage leader EMC Corp. in a $1 billion play for a piece of the lucrative data storage market.