This deal enables new "network-in-a-network" architecture and brings utility computing to enterprise customers.

Internap Network Services Corporation, a provider of end-to-end Internet business solutions, today announced that SoftLayer, a supplier of on-demand hosting services, signed a 5-year contract with Internap to deliver data center and network services to power its utility hosting solution.

"Internap has been the most respected provider of enterprise networking services for the past decade," said Sean Charnock, vice president of business development at SoftLayer. "We have used Internap's IP network service in our Dallas facility for the past two years and are excited to expand our Internap network services and add Internap's high-quality data center and management services as part of our hosting solution. We view Internap as a strategic partner as we continue our exponential growth pattern through 2008 and beyond"

"SoftLayer's unique solutions strategy is fueling their exponential growth," said James P. DeBlasio, chief executive officer at Internap. "They needed a network and data center partner they could trust to grow with them and we are pleased they selected Internap. This 5-year $16 million contract for network services and data center space enables SoftLayer's innovative hosting solution today and is the platform to support their future growth."