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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (128374)	2/27/2001 9:35:23 AM
From: Amy J	Respond to of 186894

Thread, "Intel to cut back on Web services, CEO says" yahoofin.cnet.com Intel to cut back on Web services, CEO says By Michael Kanellos Staff Writer, CNET News.com February 26, 2001, 5:25 p.m. PT Intel will curtail investment in its online services division because of lower-than-expected revenue, CEO Craig Barrett said Monday. [...] Although the division continues to gain customers, Barrett said, "revenue per customer was less than anticipated." As a result, the company will cut back on installing servers and other equipment in its data centers. In a conference call, Barrett also termed the current economic condition a "recession" that could continue its deepening effect in the second half of the year. "We're still optimistic that the second half of the year will show the most strength, but the downside is no one knows how deep the recession will go," he said. Federal Reserve Chairman Alan Greenspan has yet to call the current climate a recession. But, Barrett said, "I think it's pretty clear that the manufacturing world is in pretty bad shape right now." [...] Data centers housing thousands of servers were erected in Santa Clara, Europe and Asia. Each center costs roughly $50 million to $100 million or more. Barrett said the need for these types of hosting services exists. "We still firmly believe in managed services."