BT backs up struggling Netstore

BT has given Netstore a vote of confidence by signing up the troubled hosting company to provide it with an online data back-up service.

Netstore will provide automatic back-up for the 3000 laptops used by the mobile sales force in the BT Retail Major Business division.

The deal, for an undisclosed sum, comes at a crucial time for Netstore, the UK's first publicly listed application service provider.

The company cut a third of its staff and shut its Manchester office in April after reporting an operating loss of £4.18m on a turnover of £940,000.

"We have been involved with BT for four years, but this deal could give us access to its large community of laptop users," explained Netstore chief executive Gary Smith.

BT claims the deal will save it more than £1m in hardware and operating costs over the next 12 months and is the first automated back-up system deployed by the telecoms giant.

Richard Collier, head of IT innovation and infrastructure for BT Retail Major Business, the arm of BT selling into large companies and the public sector, says the deal has contingencies.

"This technology is available in other places. The key advantage of Netstore is its commitment to our overall strategy," he said.