Corio Inc. , an enterprise ASP that helped pioneer the concept of software as a service, yesterday announced that it will purchase the ASP assets of Qwest CyberSolutions LLC, a subsidiary of financially troubled Qwest Communications International Inc.
(see Another Shoe Drops).
Under terms of the agreement, QCS customers will receive service from Corio, but will remain at Qwest’s CyberCenters data centers. Corio, which doesn’t own any data centers, will provide applications and infrastructure management and manage the customer relationship, according to a Corio spokeswoman.
Corio will pay $15 million for the assets, which includes purchasing ongoing network services from Qwest, including data center services, dedicated Internet access and storage solutions. No announcement regarding QCS employees has been made.
“This is an extraordinary opportunity to combine two of the finest enterprise application service providers and to position Corio for long-term industry leadership,” said George Kadifa, president, CEO and chairman of Corio. “Corio gains additional core capabilities and critical mass to support our long-term objectives and ensure our capability to provide best-in-class service. Our acquired customers gain the assurance that commitments and high service levels will be maintained.”
Corio and QCS both offer what are considered the big four hosted enterprise applications — SAP, PeopleSoft, Oracle and Siebel.
“The agreement with Corio will enable our ASP customers to continue to receive high-quality services from Corio, while Qwest takes another step in de-leveraging its balance sheet and focuses more intently on its core strengths,” said Afshin Mohebbi, Qwest’s president and chief operating officer.
Corio is listed by ASPnews as a Top 20 service provider.
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Corio is listed by ASPnews as a Top 20 service provider.
