Intel becoming a CSP?
From Bloomberg
Exodus Unconcerned About Intel's Push Into Internet Hosting
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.
NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.
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