IBM wins European Internet-hosting contract

NEWS KPNQwest has awarded IBM a ten-year deal to provide all the services and hardware needed to set up Internet-hosting centres across Europe. The first six - to be opened in Frankfurt, London, Milan, Munich, Paris and Stockholm - will be up and running by the end of the year. Each will cover about 10,000 square metres and will provide hosting services for ASPs, dot-coms and ISPs. IBM will lease back 25 per cent of the centres to provide their own customers with services. IBM and KPNQwest will split revenue from the new centres on a 50-50 basis - the companies predict revenues of more than E4bn (£2.4bn).