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Exodus snaps up Covisint deal

Exodus Communications will announce next week that it has been chosen to provide managed services and Web hosting for Covisint LLC, a global automotive e-business exchange.

Exodus will provide Covisint with its professional services, infrastructure, and security to enable the exchange company's US and European membership to access tools for collaboration, transactions, procurement, and supply-chain and product development purposes, said Tom Hill, spokesman for Covisint.

"We're talking about thousands of transactions and billions of dollars worth of activity [conducted through the exchange]," Hill said, citing the Web host's prior success with quickly ramping up Ford's auto exchange. "[Exodus] understood that Covisint needed them to be flexible," he added.

Only days removed from announcing a 15% cut in its work force, beating out competition such as Digex and UUNet to provide the platform and managed services for one of the largest exchanges in existence is a much-needed boost for Exodus, said Laurie McCabe, vice president and service director for Boston-based Summit Strategies.

McCabe said Web hosting companies are feeling the pinch after over-aggressively building out data centre space to satisfy dotcoms and brick-and-mortars.

"The dotcom boom has busted, and the brick-and-mortars are less anxious about 'catching up' in the e-business race. Most data centre vendors are having trouble filling their capacity," McCabe said. "It hurts more to lose a deal in bad times."

Covisint's primary data centre site hosted by California-based Exodus is located in Illinois. A backup site used for quality assurance and testing of new applications resides in Texas, and the overseas data centre sits in the Netherlands.

Launched last autumn, Covisint is an organization serving the automotive industry and developed by DaimlerChrysler, Ford Motors, Nissan, General Motors, Renault SA, Oracle, and Commerce One.
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