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RBOC Throws Bone to SSP

StorageNetworks Inc. (Nasdaq: STOR), a storage service provider (SSP), has received some help from an unusual source: BellSouth Corp. (NYSE: BLS).

The RBOC has thrown StorageNetworks a life-line in the shape of a three-year contract, under which it will sell the struggling SSP's storage software as part of its managed hosting initiative. The financial terms of the deal were not disclosed (see StorageNetworks, BellSouth Partner up).

Like many SSPs, StorageNetworks has been forced to reshape its business model, blaming its woes on the demise of the dotcoms. Instead of owning costly networks and storage facilities, it now plans to piggy-back on the established carriers (see StorageNetworks: Big Layoff).

The deal with BellSouth is the first of many, we hope,” says John Clavin, executive vice president of marketing at StorageNetworks.

This quarter, BellSouth plans to offer StorageNetworks' STORvision command and control software as part of its managed hosting service. StorageNetworks says its software provides capacity and utilization information across heterogeneous storage networks, informing the customer how its storage is being used. Next year it plans to add backup and recovery services to the package.

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