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Covisint Selects Exodus, Sun

Covisint, the e-business exchange for the automotive industry, selected Exodus Communications Inc. for global Internet hosting and went with Sun Microsystems Inc. as the primary UNIX platform provider to power its Web, application and database servers

Santa Clara, Calif.-based Exodus said it was tapped to provide Covisint's infrastructure, including a hosting solution serving multiple global locations that includes facilities, security, storage and network services as well as monitoring and professional services.

"By leveraging Exodus' hosting and managed services expertise we are able to focus on the business of building our e-business exchange and providing our customers with superior service," said Kevin Vasconi, CTO at Covisint.

Exodus clearly was in need of some good news; last week the company said it would shed about 15 percent of its work force, or about 675 jobs, as it tries to control costs as it suffers through a general decline in spending on technology.

Exodus stock was down 52 cents in mid-day trading to $8.31; its 52-week high is $69.

Palo Alto, Calif.-based Sun , meanwhile, was selected to power Covisint's Web, application and database servers powering data centers in both the United States and Europe.

Sun said it was chosen not only because of its availability and scalability, but because of the two companies' commitment to an open standards environment.

"Through its selection of proven technology and commitment to open standards, Covisint clearly understands how to build an automotive exchange that can meet current and future requirements," said Robert R. DeMartino Jr., vice president of customer communities at Sun

Indeed, the openness of the business exchange will be the key to its survival, Covisint said, adding that "there are many layers required in an exchange's business systems integration. Applications need to interoperate ultimately, multi-exchange integration will be required."

Just last week Sun teamed with B2B software company i2 Technologies Inc. for joint engineering, sales, support and marketing for next-generation CRM products.

Financial arrangements were not disclosed for either of today's deals.

Southfield, Mich.-based Covisint was developed by DaimlerChrysler, Ford, General Motors, Nissan, Renault, Commerce One and Oracle to provide the automotive industry with collaborative product development, procurement and supply chain tools.