=DJ Exodus Communications Seeks Foothold In Asian Markets
By Robert A. Guth
TOKYO (Dow Jones)--Exodus Communications Inc. (EXDS), which over the past year has
moved into Japan, is exploring ways to enter other markets in Asia, including China and
Singapore, the company's chief executive said in an interview with Dow Jones Newswires
Monday.
"We've had teams of people in Australia, Singapore and China as well as Hong Kong,
talking to people," said Exodus Chief Executive Ellen Hancock. "I don't think it would be
a surprise to people that we want to be in those territories and if it made sense that
we'd be able to strike a deal with them."
Hancock wouldn't say when she expects to complete a deal in those countries.
Exodus, of Santa Clara, Calif., is the world's largest provider of data centers, which
are large buildings that house other companies' computer systems. The data center
business is booming as growing numbers of companies offload the running of their computer
systems and Web operations to data centers.
Exodus last year made its first moves into Japan with the purchase of Internet service
provider Global Online. Last week the company closed a deal to buy a building in Tokyo to
house its first Japanese data center.
Hancock said she expects Exodus will get a boost in Japan from its recent deal to buy
Global Center, the data center business of submarine cable operator Global Crossing Ltd.
The deal will give Exodus access to Asia Global Crossing's data center in Japan, she
said.
Worldwide Exodus is trying to expand through acquisitions, she said. In particular,
the company hopes to beef up its consulting business by buying small consulting
companies, she said. In addition the company is interested in buying other Web hosting
companies and technology companies that help boost the services Exodus offers at its data
centers, she said.
In Asia the company is looking for partners to help get a foothold in key markets, she
said but declined to provide details.
"I believe that for us to grow in this region, whether it is Tokyo or Singapore or
China or Hong Kong, we do need partners," she said.
She added that Exodus is laying the foundation in Asia for what it expects to be
strong growth in coming years. "I do think we are going to see the growth over here for a
couple of years. It won't be an overly high percentage of our business, but that's just
because things are exploding in the United States."
(END) DOW JONES NEWS 12-18-00
03:56 AM |
