RealTime IT News

IBM to Host BellSouth Data Centers

IBM is to take over some networking operations for BellSouth customers, in an outsourcing agreement that includes joint development of on-demand network services for the telecommunications company.

The agreement, whose financial terms were not released, calls for IBM to deliver managed hosting services for BellSouth from two of its facilities that include dedicated Internet access, metro Ethernet services, network VPN and DSL services, the companies said.

IBM is expected to take over BellSouth's e-business services in BellSouth's data centers in Atlanta and Miami, which opened in late 2000, the companies said. BellSouth customers are to be transferred to IBM, which also plans to provide access to enhanced hosting and application services.

In addition, the two companies plan to jointly market on-demand, or utility computing, services to small and medium-sized business customers of BellSouth located in the southeastern United States. The focus of joint development would include network, or "virtualized" storage, voice applications, broadband services, homeland security and wireless.

The hosting centers that IBM is taking responsibility for managing are expected to act as hubs from which the joint on-demand services in the southeastern United States will be delivered. BellSouth will take care of voice and data network services while IBM focuses on hosting and application services.

Jim Corgel, general manager IBM e-business hosting services, called the arrangement an example of a new computer services model that provides customers more flexibility to scale up their applications and infrastructure remotely. "The new relationship draws on the strengths of both companies in the areas of network and hosting services to help customers grow their businesses in the new on demand era."

Donna Lee, chief marketing officer for BellSouth, said the agreement with IBM is a way to extend BellSouth's core data services data portfolio by taking advantage of IBM's hosting and application services.