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

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.

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