IBM shakes on $90m Telefonica deal

Spanish telco Telefonica has signed a $90m deal with IBM to create a data storage service for its customers.

The service will enable Telefonica's business users to transfer critical data in real time across its high-speed network to one of several data storage centres.

Telefonica claims the data storage service will be a hit with businesses who do not wish to invest in their own hardware, staff and networks.

However, Graham Rowe, spokesman for storage consultancy Posetiv, said: "Storage service provision (SSP) is quite a risky service to offer. In the US over the last year quite a lot of SSPs went under because take-up hasn't been as strong as predicted."

Rowe added: "Telefonica is a big company with an advantage over pure-play SSPs as it has a large customer base which can be introduced to the service through a lot of marketing muscle."

The two year roll-out will begin at Telefonica Data USA, the group's Miami-based subsidiary which already has an outsourcing service. Telefonica refused to hint at potential customer numbers for the service although it has stated some banks in Puerto Rico expressed an interest as they are required to keep data in the US.