Denver and Palo Alto, Calif. - February 20, 2001 ? Qwest Communications International Inc. (NYSE: Q) and Hewlett-Packard Company (NYSE:HWP) today extended their strategic relationship to enhance both companies? hosting and outsourcing service offerings. Under the agreement, HP will provide outsourcing and staff management services and will lease space in select Qwest CyberCenter(sm) Internet hosting facilities. The companies plan to accelerate the delivery of web hosting services to their customers by leveraging Qwest?s broadband Internet network and complex hosting facilities and HP?s software, technology and operations expertise.
By outsourcing applications and web hosting operations, businesses can free up limited resources and space while saving up to six times the cost of building and operating the infrastructure themselves, according to Robertson Stephens, a leading investment bank. The U.S. web hosting market is expected to grow eight-fold over the next four years, according to International Data Corp. IDC predicts that annual U.S. revenues from web hosting services will exceed $24 billion in 2004, up from approximately $3 billion last year.
In April, HP will begin to manage the Information Technology (IT) staff and operations for seven existing Qwest CyberCenters, with the arrangement to extend to three forthcoming Qwest-built centers. By leveraging HP?s operational management expertise, Qwest will concentrate its resources on delivering its leading portfolio of advanced web and application hosting services. HP will manage Qwest?s multi-platform, multi-vendor hosting environment, providing customers with outstanding levels of managed services, reliability and scalability across a variety of technologies, applications and operating systems.
HP has also agreed to purchase high-speed broadband Internet connectivity from Qwest, and Qwest will purchase products and services from HP, including HP OpenView management software to help provide systems and network management in Qwest CyberCenters. Qwest currently operates 15 U.S. CyberCenters.
?HP?s established expertise in delivering hardware, software and IT services makes it an ideal partner to complement Qwest?s portfolio of hosting and e-Solutions,? said Chris Coles, Qwest?s executive vice president and COO of Internet solutions. ?HP?s ability to manage complex, multi-platform environments helps Qwest?s customers continue to receive outstanding levels of security, performance and availability within their e-business environment.?
Currently, HP software helps manage 20 of the top 25 largest U.S. based Internet Solutions Providers (ISPs) and two-thirds all U.S. based ISPs, as well as more than 30 data centers around the world.
?Qwest CyberCenters offer the broadband Internet performance and hosting capabilities that meet the needs of an accelerating market,? said David Gai, general manager of HP?s Outsourcing Services for North America. ?Together, HP and Qwest will help customers deliver profitable, innovative e-services better, faster and cheaper, which is increasingly critical in today?s uncertain economy.?
This agreement expands the scope of the strategic relationship between Qwest and HP, initially forged in 1999 with the launch of a CyberCenter technology initiative that included high-end data storage solutions for CyberCenter customers.About Qwest
Qwest Communications International Inc. (NYSE: Q) is a leader in reliable, scalable and secure broadband Internet-based data, voice and image communications for businesses and consumers. The Qwest Macro Capacity® Fiber Network, designed with the newest optical networking equipment for speed and efficiency, spans more than 104,000 miles globally. For more information, please visit the Qwest web site at www.qwest.com.
This release may contain projections and other forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Qwest with the Securities and Exchange Commission, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including potential fluctuations in quarterly results, volatility of Qwest's stock price, intense competition in the communications services market, changes in demand for Qwest's products and services, dependence on new product development and acceleration of the deployment of advanced new services, such as broadband data, wireless and video services, which could require substantial expenditure of financial and other resources in excess of contemplated levels, higher than anticipated employee levels, capital expenditures and operating expenses, rapid and significant changes in technology and markets, adverse changes in the regulatory or legislative environment affecting Qwest's business and delays in Qwest's ability to provide interLATA services within its 14-state local service territory, failure to maintain rights of way, and failure to achieve the projected synergies and financial results expected to result from the acquisition of U S WEST timely or at all and difficulties in combining the operations of Qwest and U S WEST. This release may include analysts' estimates and other information prepared by third parties for which Qwest assumes no responsibility. Qwest undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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