| |
Exodus Unconcerned About Intel's Push Into Internet
Hosting
Bloomberg News
April 28, 1999, 3:28 p.m. PT
Exodus Unconcerned About Intel's Push Into Internet Hosting
San Francisco, April 28 (Bloomberg) -- Exodus Communications
Inc., which runs Internet sites for other companies, said it
expects little competition from Intel Corp. as the world's
largest computer-chip maker pushes into Exodus's business.
Exodus Chief Executive Ellen Hancock said she's spoken to
Intel executives about their Web-hosting initiative, and they
plan to target a different part of the market.
Exodus houses Web sites for large Internet companies such as
Yahoo! Inc., eBay Inc., Inktomi Corp. and others. Intel told
Hancock that it plans to go after smaller companies that need Web-
hosting services.
''It was the best call I had all day,'' Hancock said at the
Hambrecht & Quist technology conference in San Francisco.
There are key differences in the way that Intel plans to
attack the Web-hosting market and the way Exodus does, Hancock
said. Companies that use Exodus buy their own computers and send
them to Exodus, which houses the machines and provides them with
power, air conditioning, fire control and security.
Intel, by contrast, plans to own the equipment itself,
providing space on the machines for clients, Hancock said.
Intel spokesman Chuck Mulloy said the company plans to
target small and medium-sized companies. The company is building
a data center near its headquarters in Santa Clara, California.
It plans to have three data centers built by year end.
Exodus's market is growing rapidly as more companies decide
to send their Internet-support systems to contractors. Its
revenue more than quadrupled to $30.1 million in the first
quarter from $7.11 million a year earlier.
Exodus loses money, though, because it's spending large sums
to build data centers. Exodus had a loss of $22.2 million, or 55
cents a share, in the first quarter, compared with a loss of
$13.3 million, or $2.23, a year earlier. The per-share loss was
much larger last year because there were fewer shares
outstanding. Both figures are adjusted to reflect a recent stock
split.
Exodus shares fell 1 13/16 to 89 1/4. They've risen almost
60 percent in the last three months.
|
|
