T: AT&T and IBM Forge New Internet Hosting Deal - TheStreet

AT&T (T) - Get Report and IBM (IBM) - Get Report entered into a multiyear deal worth $450 million in which IBM will use several hundred thousand sq. ft. of Internet hosting facilities in AT&T's Internet Data Centers to establish new e-business hosting centers.

IBM will have the service in operation by the end of this year at AT&T Internet data centers in New York, Chicago and Phoenix. By the third quarter of 2001, IBM should have capabilities at six additional AT&T centers. Also, AT&T will provide managed Internet access and service level agreements to IBM. And the companies said they plan to bundle and market Web hosting systems.

AT&T was up 0.2% and IBM was down 1.9%.