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To: Mike 2.0 who wrote (14993)	1/12/2000 11:03:00 AM
From: John Stichnoth	Read Replies (1) \| Respond to of 54805

Mike, Re EXDS--In one paragraph you talked about increasing revenues per customer. I presumed this was through adding services, such as ASP-type services. But then, you highlighted a desire "not to compete" with its customers. Are these two statements somewhat at odds? Where will exds add per-customer revenues, if it is not through adding ASP-type services that necessarily compete with some of the companies it is hosting? I'm obviously missing something. Best, John

To: Mike 2.0 who wrote (14993)	1/12/2000 7:42:00 PM
From: Robert S.	Respond to of 54805

Mike 2.0, the issues you raised are interesting and valid This reminds me of an interesting ASP related presentation I saw recently. The presenter presented the ASP anticipated revenue stream on a graph resembling an upward "staircase" line. I asked him if the reason for the forecast increase was due to anticipated new "seats" sold by the ASP. No, he said, he was trying to present the anticipated revenue stream from an existing customer, which will increase as additional value-added services are offered to that customer. The logic extends easily to the AIP/web host, like EXDS. In other words, not only will companies like EXDS grow as their data center space grows, but the revenue per installed customer will grow while fixed costs remain, of course, fixed. The economics of the data center business plan become very attractive indeed. Jim Seymour of TSC has speculated that Global Center will act as a "hosting center for other ASP businesses looking for reliability, speed, and a little better deal than they can get from the more established firms." Indeed, the geographic reach of GBLX's rapidly expanding global network is quite impressive; when combined with still-to-be proposed internet services, Global Center appears even more impressive. When considering whom will be steering this ship to circumvent potential pitfalls, the outlook appears still brighter. The chap leading this enterprise is the respected Leo Hindery, formerly of AT&T. Strength of management, coupled with valuable resources, bodes well for this potential challenger to the web hosting throne. Just my 2 cents