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Telco Storage Heats Up

Storage companies are hoping to cash in big next year on the trend among telco and cable providers to offer backup services, both in the data center and on individual PCs.

Connected, an Iron Mountain Inc. (NYSE: IRM) subsidiary, has been courting carriers with its PC backup services for close to two years. According to Connected's VP of strategic partnerships, Archie Miller, interest in backup services is finally taking off worldwide.

Connected now counts Deutsche Telekom AG (NYSE: DT ) and Canadian telcos Bell Canada and Telus Corp. (NYSE: TU; Toronto: T) as customers. Belgium telco Belgacom (Euronext: BELG) also announced last week it is using Connected software for its PC backup service for DSL customers (see Iron Mt.'s Connected to Belgacom).

Miller says DSL providers have placed more emphasis on backup and protection than cable companies, which have been more concerned with services like video on demand. But he thinks cable companies are getting interested quickly.

Allies of Connected see an uptick of interest, too. EMC Corp. (NYSE: EMC) joined with Connected last June to offer the EMC Proven Solution for PC backup to a range of customers (see EMC & Connected Announce Backup). Kay Benaroch, EMC telecommunications solutions development manager, says carriers now are prime prospects.

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