Telcove Selects Hostopia For Web Hosting

Leading communications services provider launches business hosting services.

Fort Lauderdale, USA, November 9, 2004 - TelCove, a leading provider of business critical telecommunications services to enterprise customers and carriers, has selected Hostopia to provide fully managed, private label web hosting and email services to its small business customers. An agreement signed between the organizations followed extensive due diligence by TelCove in a competitive vendor selection process.

"We are delighted to gain TelCove as a private label partner," says Franc Nemanic, president of Hostopia. "They are a leading provider of business communications services with exceptional market coverage in the Eastern United States. We expect them to be a powerful source of revenue from the region."

Honoring the non-disclosure terms of its business agreements, Hostopia is unable to state the exact dollar value of the agreement. It can report that TelCove's size and market leadership can add thousands of small business hosted websites and tens of thousands of business email accounts to Hostopia 's managed network. As part of the agreement, TelCove migrated its existing hosted sites to Hostopia.

Craig Drinkhall, senior vice-president, product development & engineering says, "We chose Hostopia to deliver our business hosting and email for two reasons: they have the latest product features to drive our growth and reduce customer churn, and their expertise in operating the platform offloads valuable resources we'd prefer to deploy elsewhere. It's a superior business model that allows us to succeed in hosting while focusing attention on our core business."

Owing to Hostopia's highly customizable private label formula, TelCove's customers experience the service seamlessly within the TelCove and customer facing, branded environment. Hostopia is completely invisible as the management of the back end. End user technical support is provided by TelCove, assisted by Hostopia's turnkey suite of customer query tools and diagnostic applications.

Drinkhall continues, "Our hosting business plans are more ambitious with Hostopia's help. We have already launched highly effective spam and virus filtration for our business email users and we will be rolling out numerous other value added features from Hostopia such as e-commerce store applications, all with our branding and support, of course. Our customers are delighted and the business model is very healthy."