PSINet Names Jack Chidester Senior Vice President Of Three New U.S. Strategic Business Units
PR News Wire via Dow Jones
HERNDON, Va., Dec. 2 /PRNewswire/ -- PSINet Inc. (Nasdaq: PSIX), the first
commercial Internet service provider (ISP), today announced a customer-focused
alignment of its core U.S. business operations to take advantage of accelerating
growth and expansion. The three new strategic business units cover the entire
spectrum of commercial Internet services that PSINet provides within the United
States.
"PSINet led the development of the commercial Internet, one of the fastest
growing segments of the world economy," said William L. Schrader, chairman,
president, and chief executive officer of PSINet. "Now, by concentrating our
core US-based resources in these strategic business units and by aligning
ourselves with the structure of this explosive marketplace, PSINet brings our
competitive strengths to focus on our customers' mission critical applications."
The three new business units are:
-- Corporate Network Services
-- Carrier and ISP Services
-- Applications and Web Services
CORPORATE NETWORK SERVICES
Currently constituting more than 75% of PSINet's U.S. domestic business, the
Corporate Network Services unit offers the most powerful suite of traditional
commercial Internet connectivity products in the industry. PSINet products range
from ISDN/56K dialup to T3 dedicated access, including PSINet InterFrame,
InterMAN, InterRamp, IntraNet/Extranet, and roaming/remote access products.
PSINet also offers premier security, firewall, and full business solutions
marketed to corporations ranging from small firms to the Fortune 100. This
business unit, which contains dedicated resources for sales, marketing, product
management, and business development, is focused on a market niche estimated by
industry analysts to exceed $15 billion by 2000.
CARRIER AND ISP SERVICES
The Carrier and ISP Services unit delivers consumer and commercial Internet
access on a private-label basis to over 40 ISPs, allowing dial-up and dedicated
connections to PSINet's 235 Points of Presence (POPs) in the United States.
This unit offers services to a community of 500 large telecommunications
providers plus over 4,000 US-based ISPs and supports the Company's efforts in
ISP Peering.
Customers of PSINet's Carrier and ISP Services, including emerging information
providers, have the opportunity to brand PSINet's industry leading products and
services as their own. This provides additional services to their existing
customers, thereby growing revenue and increasing customer retention. These
companies can leverage PSINet products and services to open new markets that
were previously beyond their geographic reach or technical ability. Industry
analysts estimate this market segment will exceed $1 billion by 2000.
APPLICATIONS AND WEB SERVICES
The Applications and Web Services business unit provides a range of content
hosting and distribution services and is developing advanced managed
applications for the future. The PSIWeb shared hosting service provides
businesses with the industry's only 100% guarantee. Also available are PSIWeb
eCommerce, a range of secure electronic commerce solutions including Worldpay
for real-time multicurrency transactions.
Multimedia hosting services, such as TV on the Web LIVE, a live Internet
broadcasting service, feature streaming video and audio data. The unit offers
managed and unmanaged co-location services, electronic mail and InternetPaper, a
global Internet fax service, in PSINet's 350 POPs around the globe. This
strategic business unit is among the largest providers in a global industry
which analysts say may grow to over $5 billion by 2000.
NEW LEADERSHIP FROM CHIDESTER
In addition to defining the strategic business units, PSINet announced the
appointment of Jack Chidester, a former MCI senior executive, as senior vice
president, to lead all three business units. Reporting to Chidester are three
vice presidents, all of whom are telecom industry veterans and former executives
of companies such as MCI, Bell Atlantic, Cellular One, and PACTEL. They are:
Rick Frizalone, vice president for Alliances and Business Development in the
Corporate Network Services unit; John Kraft, vice president of Carrier and ISP
Services, and Michael Mael, vice president of Applications and Web Services.
Chidester reports to Pete Wills, executive vice president and chief operating
officer. "Jack Chidester's reputation and leadership in sales and marketing at
MCI is well known," said Wills. "The new team's leadership experience in
premier growth-oriented telecommunications companies will significantly
contribute to fostering PSINet's future success."
Chidester joins PSINet from MCI Telecommunications where he held senior
executive positions in MCI Global Enterprise Management Services, MCI
Systemhouse, and MCI regional management. He is credited with leading or
participating in many of MCI's notable marketing achievements such as PROOF
POSITIVE and NetworkMCI. As vice president of MCI's largest sales region in
terms of staff, operating budget and revenue, Chidester was responsible for over
$1 billion in annual revenues with growth exceeding 30% per year, and a total
growth of 80% during his leadership from 1993 to 1996.
More importantly, the business unit he led grew twice as fast as the overall
market during the same period, allowing MCI to increase 4% in market share,
while reducing customer turn-over to an industry low. During his 16 year tenure
at MCI, Chidester held a variety of business development, sales, and marketing
management positions with many of MCI's leading business units. In addition to
MCI, he worked with XLConnect a professional service organization offering
comprehensive internetworking services. Chidester brings expertise in a variety
of business services such as applications development, internetworking,
outsourcing services, telecommunications, and Internet managed services.
REFINING FOCUS FOR STAKEHOLDER BENEFIT
The newly formed PSINet business units organize management, sales, product
marketing, product management, and related support resources within key
operating units that had already developed at PSINet. "The enhancements PSINet
announces today create a more collaborative style of management that we believe
will help us achieve the potential for even stronger growth in the years ahead,"
said Chidester. "In making these changes, we merge the strong Internet
executive pool existing within the Company with complementary executive talent
and fresh perspectives from outside PSINet," he added.
"By focusing these three business units on organic growth in our strongest
market, we believe that we can achieve profitable growth and bring together the
interests of our customers, shareholders and the PSINet team," said Schrader.
ABOUT PSINet
PSINet is a leading provider of turn-key corporate Internet and intranet
access, managed security services, electronic commerce solutions and Web hosting
services throughout the United States and abroad. PSINet manages one of the
world's largest and most advanced fast-packet networks, which provides
state-of-the-art, high speed Internet access ranging from dedicated high-speed
circuits to ISDN to high-speed modem dial-up. PSINet backs up its state-of-
the-art network with the industry's original and most comprehensive service
guarantees, employing automatic back-up systems and crediting for service
outages.
Headquartered in Herndon, Va., PSINet has offices throughout the U.S. and
subsidiaries in Canada, Japan and Europe, including Belgium, France, Germany,
the Netherlands, Switzerland, and the U.K. For more information contact PSINet
by phone at 703-904-4100, by e-mail at info@psi.com or by accessing the
corporate Web site at psi.net.
/CONTACT: Michael P. Binko, APR of PSINet Public Relations, 703-904-4285,
binkom@psi.com or Catherine Canterbury of RMR & Associates, 301-217-0009 ext.
24, ccanterbury@rmr.com/
10:57 EST |
