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Duo team on e-commerce services

USinternetworking and Cisco will join forces to deliver application hosting, network services, and application development to target midsized companies building e-commerce sites.

USinternetworking and Cisco are teaming to deliver e-commerce services.

The companies said today that they will join forces to deliver application hosting, network services, and application development to target midsized companies building e-commerce sites.

USinternetworking will offer network outsourcing and development services from Cisco's Internet Business Solutions group.

USinternetworking will use e-commerce software from Microsoft and BroadVision to build applications.

A growing number of small vendors are gearing up to offer application rental services.

One of the main players in this embryonic market, USinternetworking, filed to go public last month. The Annapolis, Maryland-based company collected $62 million in its second round of financing, and is backed by such heavyweights as US West and Siebel Systems.

The company's rivals, Corio, ServiceNet, and World Technology Services, are among an emerging group of so-called Application Service Providers (ASPs) which are partnering with business software companies to stake a claim in the growing market.

Cambridge, Massachusetts-based Forrester Research estimates the market for packaged applications rental will hit $6 billion by 2001.