Blogarithms
Doug Kaye's thoughts on web services, web hosting and managed services.
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Chapter 11? Check Those Contracts! Exodus certainly never thought it would come to this, but every one of their contracts I've seen includes a provision under which customers may terminate their web-hosting agreements if Exodus files for bankruptcy protection. And all of my clients that are hosted at Exodus are planning to exercise that option. If the pattern is widespread, Exodus will have no viable hosting business left. None. They can't close enough data centers to make up for the potential loss of business. If they tell you they're closing the data center housing your site, what are you going to do? Are you likely to move to another Exodus facility, hoping they'll stay in business and not close down your new IDC as well? Ah...that's what I thought you'd say.
If you're not an Exodus customer, it's time to blow the dust off your web-hosting contract and look for the Termination paragraph. And update your web-hosting exit strategy accordingly.
Posted Tuesday, October 09, 2001 4:19:46 PM 
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Exodus Mass Exodus. If my clients and the people that send me email in response to this weblog are any indication, there appears to be a mass exodus of customers from Exodus. Fearing that the Chapter 11 bankruptcy re-organization will mean the exit of Exodus from the web-hosting business altogether, nervous clients are pulling out their servers and looking elsewhere. (See the above story re web-hosting contracts.)
Where are they going? At least three clients have taken my advice and checked out IBM Global Services, a huge sleeper in the colocation business with something like 130 data centers, 60 of which handle web hosting. So far they like what they see.
Posted Tuesday, October 09, 2001 4:12:52 PM
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