Qwest Tallies $40M Govt. Contract

Qwest has won a contract from the National Institutes of Health (NIH) for Web hosting and other network services valued at $40 million over 10 years.

Under terms of the deal, the Denver telecom company will provide collocation and communications services to ensure the confidentiality and availability of data across its 27 NIH U.S. facilities.

Qwest is already the backbone provider for the Internet2 Abilene Network that connects NIH with more than 130 universities and other research institution across the country.

“This significant win is further proof of Qwest’s continued commitment to the hosting segment of the market,” said James F.X. Payne, senior vice president and general manager of Qwest’s Government Services Division (GSD).

In the last year, several high-profile service providers, including Level 3 and Sprint, have closed or sold their Web hosting business because they lacked enough customers to make a profit.

Qwest has stuck with it and currently has eight facilities to host and back-up sites for large corporate clients and government agencies. The company also offers security and storage services.

Qwest and other survivors, SBC Communications and AT&T and NaviSite, have offered incentives to prospecitive customers who were be displaced by the closures in the sector.