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CSC launches application hosting service

Professional services firm Computer Sciences launches a new Web site and application hosting service targeting dot-com start-ups and midsized companies.

Professional services firm Computer Sciences today launched a new Web site and application hosting service targeting dot-com start-ups and midsized companies.

The El Segundo, Calif.-based firm will provide management, maintenance and around-the-clock monitoring for companies' Web sites, as well as the installation and management of Web-based applications, CSC said in a statement.

The move comes after a similar announcement from rival EDS. On Monday, the professional services giant unveiled its new application and Web hosting services in an effort to compete in the high-profile, lucrative application service provider (ASP) market, which analysts say will be worth nearly $23 billion by 2003. EDS said it plans to earn about $100 million in new revenues by 2002 through its new hosting services.

In recent weeks, a growing number of companies have set up ASP strategies to try to get a piece of the action. The market has nabbed major attention from a wide range of technology providers, from software makers Oracle, SAP and Microsoft to computer company Dell and chipmaker Intel, which are stepping up competition against small, niche players Corio and USinternetworking.

CSC will offer customers managed services based on Unix and NT systems and servers, along with secure data center facilities, high-speed network access and management, and user support. CSC operates and owns several data centers located in Newark, Del.; San Diego; Sydney, Australia and Copenhagen, Denmark.

The company said it will market its new hosting services to existing and prospective clients through sales organizations of its business units.

Last month, the company reported that third-quarter profit rose 20 percent, fueled by increasing commercial, government and e-commerce contracts. CSC said it sees Internet-related business, such as its contract with General Motors to develop a Web-based retail system, as a strong driver of growth and will continue to round out its Internet-related services.