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Technology Stocks : e.spire Communications (ESPI) -- Ignore unavailable to you. Want to Upgrade?

To: Marshall who wrote (363)	7/22/1999 7:56:00 AM
From: Frank A. Coluccio	Read Replies (1) \| Respond to of 471

This hosting thing is just another added service they're offering and it's a popular idea with many providers - both large and small. Granted, it's popular now in its present incarnation, largely due to the proximity of the SP to the 'net's backbone and other WAN access points. Here I'm referring to one of the primary money savers due to the obviation of the need of local loops. But today's hosting to a large extent is different from tomorrow's hosting which will consist of more application service provider- (ASP-) based services, as opposed to the form of surrogate space and housing services that is being leased today for enterprises' own network elements. I don't want to digress on this thread too much, except to state that I see a shift taking place in the colo regime at some point, which will negate many of the benefits the providers see in it at this time, unless they are willing to take on more than just the role of facilities management in the most fundamental brick and mortar real estate context, with power and environmentals thrown in. Single access solutions for all types of services through a single pipe, and the delivery of enhanced services from SP-owned and maintained application generating capabilities will become more important than simply housing customers' servers closer to the 'net's backbone and the WAN in general. Actually, if fiber economies continue in their current direction, the savings afforded by hosting services (housing of customer equipment at the carrier location) might be difficult to justify in the future because fiber backhauling of all services to the customer's location could become economically viable, again. At that point the customer will need to find other justifications in order to source the work out. Pojections about any CLEC's future status will also be dependent on their abilities to compete amongst themselves in achieving complete sourcing to small to medium size (if not all) businesses, as well, IMO. I'm not singling out ESPI in this case, rather I'm referring to all SPs of all acronymic persuasions. And that includes QWST and the others who've given initial signs of next gen propensities, but who at the same time have embraced many of the ways of old. All IMO. Regards, Frank Coluccio