Qwest, HP to open high-end data storage centers

BANGALORE: Qwest Communications and Hewlett-Packard have agreed to work together on high-end data storage centers. In the e-services deals, HP gives away hardware to companies that use it to house services they sell over the Internet. HP gets a cut of the revenue and sometimes has taken equity investments in the companies.

HP was able to move quickly on its e-services deals because it has already got the equipment in hand, analysts have said. Essentially, the company has been trying to make money off existing products in a new way. Qwest deal is the 35th "e-services" deal HP has announced, said HP's enterprise computing group head of marketing Nick Earle. The size of the deal will vary according to the number of customers who sign up for it, but Earle estimated HP would contribute at least several hundred millions of dollars' worth of equipment. Under the deal, Qwest will add seven new computer facilities, called "CyberCenters," to the seven it's already set up, giving the company a total of 1.8 million square feet to fill with computer hardware.

As part of the three-year agreement, HP will provide Qwest with solutions from its SureStore E portfolio of products and services, which include tools for connecting and monitoring storage area networks. Qwest expects to realize $200 million in additional revenue the first year the service is operational and up to $1.5 billion over three years.