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May 13, 2008 -- (WEB HOST INDUSTRY REVIEW) -- British telecommunications provider BT Group (btplc.com) is believed to be in talks to sell its British data centers to electronics manufacturer Hewlett-Packard HP (hp.com) in a deal worth approximately $2.9 billion. The move would deepen the relationship established by the two companies four years ago.
The agreement, which was first reported by the Sunday Times, will see HP take over 24 of BT's data centers in the UK, along with 400 BT employees, while BT will continue to access the facilities under a ten-year deal.
In addition to the $2.9 billion cash, BT would get contracts to manage more of HP's voice and data network, which it already runs in Europe. The deal would extend its management globally.
Although a more integrated relationship between the two companies raises speculation that they could be heading for a merger in the long term, the Sunday Times says insiders are "playing down" the prospect.
BT and HP first agreed to team up four years ago in an effort to win large IT-services contracts as the information technology and telecommunications sectors began to merge.
Under the arrangement then, BT took over HP's European voice and data networks while HP managed BT's IT infrastructure in Britain. Today, HP and BT support each other's contract bids and it is believed the two companies will start submitting joint bits for outsourcing contracts more often, according to reports by Forbes.
The deal will reportedly be finalized in the next few weeks.
Early Tuesday morning, it was announced that HP had reached an agreement to acquire Electronic Data Systems for $12.6 billion.
Read Back Issues of WHIR Magazine
October 2009 - Web Hosting's All Star Team
This has been, for us, one of the most interesting, exciting and challenging build-ups to an issue of the magazine yet, Web Hosting's All Star Team. The balloting process was our first experiment with a kind of user participation we're planning to do a lot more with in the months to come. We had thousands of ballots submitted, with hundreds of write-in suggestions and a demonstration of user engagement that has us feeling super positive about the project.
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July 2009 - What am I Worth?
One of the interesting luxuries of working on a project like the printed WHIR magazine is that it allows us to play with things like our point of view from one issue to the next. In recent months we've been giving added attention to the kind of practical and applicable advice aimed at smaller hosts and resellers. This issue carries on with that point of view, asking, in our cover story, "what am I worth?" It's a complicated question without a clear-cut answer.
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May 2009 - The Blueprint for a Small Web Host
I was a little surprised by how difficult it became to see this idea through. We set out to assemble a blueprint for a small hosting business, but butted up pretty quickly against the general impossibility of covering all the territory that was out there to be covered. The basic constraints of a printed magazine, and the less-than-infinite amount of time we had available forced us to face the fact that we could never produce an exhaustive guide to starting a hosting company.
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