RealTime IT News

IBM, KPNQwest to Create Europe's Largest Hosting Network

IBM and business ISP KPNQwest announced Tuesday a ten-year European e-business services initiative that includes plans for a hosting alliance expected to generate over $4 billion in revenues.

The two companies say they will split the revenues equally, although the Web hosting centers will be called KPNQwest CyberCenters.

The first six CyberCenters will be in Frankfurt, Paris, Munich, Stockholm, Milan, and London.

Jack McMaster, chief executive officer and president of KPNQwest, said the initiative demonstrated that the predicted convergence of next generation network and IT services is happening in Europe.

Frank Kern, general manager, professional services, of IBM Global Services EMEA, said the market for e-business hosting and B2B network services in Europe is exploding and would be worth $52 billion by 2003.

"IBM will draw on our experience in managing 133 data centers around the world to ensure this agreement with KPNQwest is successful in providing companies across Europe with the bet-your-business support they need," said Kern.

KPNQwest already has twelve hosting centers and plans to construct 18 of the new "mega-CyberCenters." The centers will offer Web hosting, application sharing and telehousing services on the fiber-optic network KPNQwest is deploying to connect 46 European cities.

The two companies say that the range of services offered at the new CyberCenters will be among the most advanced of its kind, hosting complex Web sites, providing co-location capabilities for customer managed services, and offering a full range of other network services.