Verizon and Interland Announce Three-Year Agreement to Offer Web Hosting and E-Commerce Services

Verizon Communications and Interland Inc., a provider of Web enabling solutions, announced a three-year strategic relationship to market and sell a full range of Web hosting, design, and consulting services, as well as bundled packages of these and other Internet services, to small and medium-sized businesses.

"Surveys have indicated that Internet hosting and e-commerce are the hottest emerging issues with business managers, and there is a strong demand in the market right now for reliable access and hosting services to enhance the competitive position of small and medium-sized businesses," said Bob Ingalls, president of Verizon's business solutions group. "Interland's extensive customer support system and the reliability and scalability of its technology will enable us to deliver to our customers solutions that will enable them to grow their business and work more efficiently via the Web," Ingalls said.

The relationship is outlined in three agreements: a marketing channel agreement, a service provider agreement, and a billing and collection agreement. Under the marketing channel agreement, Interland and Verizon will jointly market Interland's full suite of Web hosting, managed services, Web design, and related e-commerce solutions to over two million Verizon small and medium-sized business customers in the Northeast and Mid Atlantic states beginning in November. Under this agreement, the services will be sold and supported by Interland's sales and customer support teams to businesses that will become Interland customers.

As part of this agreement, Verizon and Interland will equally split marketing expenses, with each company initially committing a minimum $6 million in co-marketing funds. The Interland-enabled services will be co-branded and will be Verizon's only stand-alone shared Web hosting offering to small and medium-sized businesses in the region. Prices for the hosting and support services will depend on the hosting plan, storage capacity, and other features selected from Interland suite of services.