There's no question Web hosters are making some inroads with the enterprise market. But that doesn't mean cuts aren't necessary, Lewis says. She says any organization not thinking about cost-cutting, streamlining operations and enhancing services is going to be in trouble. She predicts most hosters will put off data center buildouts in the near future. In the meantime, analysts say they expect to see more acquisitions or mergers, especially as telecom and IT services companies enter the market.
Exodus is rumored to be a buy target, too.
Fleeing executives Exodus is still working through its integration with GlobalCenter and last week announced the departure of several top executives. CEO Ellen Hancock says Case and Brown left for personal reasons, while Casey's departure resulted from organizational changes stemming from Exodus' acquisition of GlobalCenter and its focus on the global marketplace. Casey's duties will be split between Hancock and other executives, including Laurie Priddy, former COO of GlobalCenter, Hancock says. Dick Stoltz, who has been a senior adviser for strategy and finance at Exodus since he stepped down as CFO and COO last year, will serve as CFO until a permanent replacement can be found, Hancock says. The cuts follow Loudcloud's disappointing IPO in March.