Loudcloud Teams With Qwest On Five-Year Marketing Deal - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Loudcloud Teams With Qwest On Five-Year Marketing Deal

Loudcloud and Qwest agree to five-year marketing deal.

Web-site hosting company Loudcloud Tuesday revealed a five-year joint marketing deal with Qwest Communications International Inc. Under terms of the agreement, Loudcloud will become Qwest's preferred provider of Web hosting and application management services. Qwest will become Loudcloud's preferred supplier of data center and networking services, providing access to its data centers in North America and Europe.

Qwest expects the agreement, which is backed by revenue and volume commitments from both companies, to generate $260 million of incremental services revenue between itself and Loudcloud over the next five years. In addition, Qwest will transition the management of its business Internet site, Qwest.com, to Loudcloud.

Web hosting has yet to prove to be a profitable market. Loudcloud and a number of other Web-hosting companies have reported mounting losses this year. Loudcloud, which is set to announce its second-quarter earnings Wednesday, reported a $60.3 million net loss on revenue of $11.7 million in the first quarter, ended April 30.

A partnership with Qwest for data-center space could be Loudcloud's effort to avoid following in the footsteps of rival Exodus Communications, which observers believe may not survive much longer as an independent company. Exodus reported $583.4 million in losses in the second quarter, ended June 30, and has amassed $3.5 billion in debt in an effort to build a massive data-center infrastructure. Among the benefits of the Qwest arrangement, cited by Loudcloud's CEO and co-founder Ben Horowitz, is "to reduce the company's cost base."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Slideshows
IT Careers: Top 10 US Cities for Tech Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  1/14/2020
Commentary
Predictions for Cloud Computing in 2020
James Kobielus, Research Director, Futurum,  1/9/2020
News
What's Next: AI and Data Trends for 2020 and Beyond
Jessica Davis, Senior Editor, Enterprise Apps,  12/30/2019
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll