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Technology Stocks : Exodus Communications, Inc. (EXDS) -- Ignore unavailable to you. Want to Upgrade?

To: Bob A Louie who wrote (1156)	9/1/1999 8:27:00 AM
From: GHowe	Read Replies (2) \| Respond to of 3664

Churn rate doesn't accurately reflect what is happening in the Web hosting area, that's stuff really for the consumer ISP crowd that gets "rehashed" by non-consumer ISP companies trying to mollify investors that things are going well. What happens in the Web hosting area is that customers don't typically pull servers out of the original host's data centers (although that is not unheard of, nor is it virtually impossible, despite the claims of others. I have seen it done before!). Hosting customers will sign on with another provider, and give the new provider the majority of its future business. Therefore churn is low for the original hosting provider, however the "legs" are cut out from under the growth story as customers are taking new business elsewhere. Not exactly what you all would want to hear, but that is the way it works. There is quite a bit of truth to what is in the Street.com article, unfortunately for Exodus shareholders. These guys did their homework, as did Forrester and others who were cited in the article, and it is not just with the small, supposedly "unheard of" companies. Extrapolating 40% sequential growth for this company hinges on capturing the majority of Exodus' customer business, not losing it to competitors. That is difficult to monitor and is not reflected in simplistic churn rates.