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

To: Mike 2.0 who wrote (2639)	8/31/2000 1:16:22 PM
From: Puck	Read Replies (1) \| Respond to of 3664

LoudCloud and some other start-ups not yet public which I'm not familiar with. I encourage you to read the report yourself at epoch.com. On the menu bar on top, go to "companies" and select Exodus. Accessing the report requires a quick sign up but is otherwise free. Signing up took me about thirty seconds, I think.

To: Mike 2.0 who wrote (2639)	8/31/2000 1:24:34 PM
From: Puck	Respond to of 3664

Here's a passage from Epochs argument questioning the viability of Exodus's long term strategy: Next-generation providers may soon offer better solutions for various Exodus services: We believe that Exodus will face increasing challenges from next-generation providers over the long term. The Exodus business model is split equally between co-location facilities (space), connectivity (bandwidth) and managed/professional services. We believe next-generation broadband service providers will break up this model; in other words, a raft of new businesses are emerging to challenge different pieces of the Exodus revenue stream. These include neutral co-location facilities providers (providers that do not bundle their own network or managed services with their co-location services offering) such as Colo.com; focused broadband bandwidth providers such as Enron, Sigma Networks or Telseon; or platform service providers such as Loudcloud, MimeCom or Logictier. We believe that these companies, and others like them, will grab a portion of Exodus' future market by offering more focused service offerings to the core customers that have become Exodus' bread and butter. This is in keeping with our views on focused vs. integrated business. Exodus may be succumbing to the flaws of the vertical model it once broke apart: We think that Exodus' recent adoption of a more managed-services approach to delivery will weaken its leadership position in the co-location services market. Exodus has historically demonstrated an incredibly focused approach to its infrastructure deployment and service enhancements. Using a horizontal business model aimed at a specific portion of the data-service market, Exodus has emerged a category leader, with best practices and a market-leading valuation. However, Exodus's reliance on revenue streams from managed services and bandwidth do not allow the company to change directions quickly should it become clear that more focused models are winning in the marketplace. Over the long run, Exodus' integrated services model (where it attempts to sell multiple services to a single customer) may impair the company's ability to compete for service revenues in certain market segments and reduce the company's overall growth rate.