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C&W Bails Out

norskode writes "Not much to go on yet, but it seems that Cable & Wireless is bailing out of their US operations. This is a big provider of IP pipes, and they run the data centers they bought from the failed Exodus folks. There are a LOT of sites that live in their data centers, but no word yet on the disposition of those facilities."

220 comments

  1. OOPS... by xanadu-xtroot.com · · Score: 2, Informative

    Another glitch in /. This is a subcriber posting...

    --
    I'm not a prophet or a stone-age man,
    I'm just a mortal with potential of a super man.
    1. Re:OOPS... by Mark+Round · · Score: 0, Offtopic

      Yup, and I can see the red bar as well. Not a subscriber, either. "Problems with this story?" guff appearing as well.

      Ho hum.

    2. Re:OOPS... by bluelip · · Score: 1

      Glad I wasn't the only one that saw this. Was that supposed to be for subscribers only?

      --

      Yep, I never spell check.
      More incorrect spellings can be found he
    3. Re:OOPS... by Anonymous Coward · · Score: 0

      So that would explain the red bar instead of the usual Slashdot green?

      Yup. The subscriber only postings have the red bar. Also, they have that "See any problems with this story" thing so subscribers can proof-read the posting before the rest of the planet sees it. I thought that was the job of the editors, but...

      Aside, yes, that was a glitch.


      - Xanadu

    4. Re:OOPS... by pclminion · · Score: 0

      I'm glad we're all getting moderated to -1 for asking perfectly legitimate questions.

    5. Re:OOPS... by SuperDuG · · Score: 1
      OOPS... (Score:2, Informative)
      by xanadu-xtroot.com (450073) o xanadu@@@inorbit...com on Thursday June 05, @10:14AM (#6124015)
      (http://slashdot.org/)
      Another glitch in /. This is a subcriber posting...

      --

      --

      irc.drirc.net #pranknet

      Need a CS Server for dirt cheap?

      [ Reply to This ]

      Starting Score: 1 point
      Moderation +1
      40% Informative
      40% Overrated
      20% Funny
      Total Score: 2

      SO basically we're seeing a fairly good discussion on slashdot and more importantly on the inner workings of the slashcode, but not seeing the original post moderated into oblivian just the replies.

      This does seem a bit odd to me actually. As do the "There's a new slashdot story coming subscribers get to see it first!" I don't really come to slashdot for breaking news, I come to slashdot for the discussion of news items. I looks for recent news on cnet, zdnet, google, wired and the register. I think this "breaking news" on slashdot is a sham, the only advantage is you get to put in your own two cents first. Frankly I'm more interested in responses to my posts, not the karma rating.

      --
      Ignore the "p2p is theft" trolls, they're just uninformed
  2. Not a whole lot left... by chrisbw · · Score: 5, Interesting

    C&W pulling out, UUNet/WorldCom not doing real well, BBN getting sucked up by GTE... not much of the original backbones left it seems. Wonder how long until the US Internet is just an interconnection of all the telcos?

    --
    Chris -- http://www.bitter.net/
    1. Re:Not a whole lot left... by bourne · · Score: 4, Informative

      BBN getting sucked up by GTE...

      Keep up, will you?

      BBN got sucked up by GTE (after briefly instantiating as BBNPlanet); GTEI then got acquired by Bell Atlantic, which then devolved into Verizon and Genuity. Genuity has now been acquired by Level 3.

      Next week, Ramirez, long thought dead, will turn up and lay his claim to L3's heart!

    2. Re:Not a whole lot left... by Fished · · Score: 1

      Actually, It's looking like UUNet/Worldcom/MCI may make a run of it yet. They are correcting some of the accounting problems and coming out of bankruptcy with good positive cash flow. Of course, they ditched half their workforce to do it... but hey, whaddaya want?

      --
      "He who would learn astronomy, and other recondite arts, let him go elsewhere. " -- John Calvin, commenting on Genesis 1
    3. Re:Not a whole lot left... by jo42 · · Score: 1
      whaddaya want?

      For the dot com/telecom stupidity to have never happened? There never was a 'new economy' - just a bunch of shiteheads yacking about something they knew nothing about...

    4. Re:Not a whole lot left... by Anonymous Coward · · Score: 0

      Actually, UUNet/MCI is doing much better, thank you.

    5. Re:Not a whole lot left... by gmack · · Score: 1

      Don't forget Group Telecom. Theve been in bankrupcy proceedings for most of the year.

      The real laugh is they once said "why would you want to go to a little player like peer1?" Were a big billion dollar international telco and aren't going anywhere and they are just a little player that can dissappear at any time."

      Now peer1 is left standing and GT is almost gone.

    6. Re:Not a whole lot left... by Anonymous Coward · · Score: 0

      I think you have some keeping up to do as well. Level 3 has sold Genuity to CSC (Computer Sciences Corporation).

    7. Re:Not a whole lot left... by bourne · · Score: 1

      Level 3 has sold Genuity to CSC (Computer Sciences Corporation).

      Only the hosting business, which doesn't really count in this context.

  3. this is news? by Anonymous Coward · · Score: 0

    Gosh, they called my office about two months ago and said they were pulling our T1s and IPs. Maybe we just thought we heard them...?

    1. Re:this is news? by hesiod · · Score: 1

      > Gosh, they called my office about two months ago and said they were pulling our T1s and IPs

      Two months ago? Hell, our (my previous employer, actually) service was ended Dec 1, 2002. I had to move our little ISP to an entirely different place -- I never realized how much it sucked until I had to make sure 50+ domains all worked right on 1 IP, then 2 IPs at the same time, then just the other IP, never losing any traffic... bleargh

  4. right off the top of my list... by redlum · · Score: 5, Informative

    A traceroute to google shows it's using cw.net and exodus.net

    This could be bad...

    1. Re:right off the top of my list... by rmadmin · · Score: 3, Interesting

      Yes, it "COULD" be... but I don't think it will. C&W isn't just hitting the power switch. They'll migrate stuff. We were on C&W last year (ISP T1) and last year they sold ALL of their ISP accounts to New Edge Networks, (Which I must say is over priced, and the quality of service sucks bad!). Anyways, they are good about switching things over seamlessly, they just pick back places to sell your account to ;-(.

    2. Re:right off the top of my list... by Anonymous Coward · · Score: 0

      I wouldn't think google would rent space at a data center with the number of the machines they need to host.

      A traceroute from San Antonio shows the last links as:
      14 csr11-ve241.Sterling2dc3.cw.net (216.109.66.90) 44.665 ms 44.320 ms 44.459 ms
      15 218-google-exodusdc.exodus.net
      Which shows its near Washington DC.

      However a traceroute from Oz shows:
      9 i-9-2.sjc-core01.net.reach.com (202.84.143.13) 206.581 ms 206.707 ms 216.386 ms
      10 i-13-0.paix-core01.net.reach.com (202.84.143.249) 202.578 ms 200.712 ms 200.693 ms
      11 google.paix-core01.net.reach.com (134.159.63.70) 200.818 ms 199.856 ms 200.835 ms
      Thats close to San Jose.
      From a server in San Jose...
      8 ge-1-1.a01.snjsca04.us.ra.verio.net (129.250.31.68) 23.095 ms 21.444 ms 20.880 ms
      It looks like to me that they have data centers on both coats or they run their on very high speed network. Years ago it looked like they had their own conection to a peering point in San Jose. If you were them, would you pay for bandwidth or just run a big pipe to the exchange point?

    3. Re:right off the top of my list... by realdpk · · Score: 1

      Paid-for bandwidth is typically going to be leaps and bounds better than bandwidth from a public (or private) exchange point where you're bartering for peering agreements.

      Paid-for bandwidth is actually cheaper at this point than peering bandwidth, when consumed in high quantities, at this point, because so many vendors are willing to sell bandwidth below their cost.

      The latter is bound to change once certain vendors exit the market *coughCogentcough*.

    4. Re:right off the top of my list... by anthony_dipierro · · Score: 1

      Guess it's time to make a P2P google.

    5. Re:right off the top of my list... by claud9999 · · Score: 1

      Maybe Google will buy/run CW's backbone that they're connected to? (Would make sense, as the quality of Google is highly dependent on the quality of the backbone.)

    6. Re:right off the top of my list... by Christianfreak · · Score: 1

      I guess YMMV, New Edge is a bit pricey but in all my dealings with them they were extremely helpful, I've worked for two ISPs that use them for DSL connections to customers.

    7. Re:right off the top of my list... by gmack · · Score: 1

      with Cogent goes at least one major co-location provider.

      Looks like were going to see co-location prices brought up to market value soon.

    8. Re:right off the top of my list... by realdpk · · Score: 1

      Sure, there'd be fallout from Cogent going under. However, any provider relying solely on Cogent for transit would just be getting what they deserve. :)

    9. Re:right off the top of my list... by Anonymous Coward · · Score: 1, Insightful

      WRONG WRONG WRONG.

      With this news, do you honestly think the few remaining intelligent engineers are gonne stick around to perform these "seamless switches"?

      Of course not, they're going to find new jobs and RUN.

    10. Re:right off the top of my list... by jk8q · · Score: 1
      Google does use co-lo's. I know for sure that they use Cable & Wireless. I'm not sure who else they use. They do have multiple hosting locations.

      Unless you are a huge company, building your own data center is not feasible. It is a tremendous cost and huge expense. Plus unless you manage to steal lots of good employees from existing hosting companies, odds are you'll do it wrong.

      For bandwidth - they will be paying somebody for it. But being in a co-lo doesn't restrict you, you can still get whichever network providers you want to run their pipes in to you.

    11. Re:right off the top of my list... by jk8q · · Score: 1
      WRONG WRONG WRONG.

      With this news, do you honestly think the few remaining intelligent engineers are gonne stick around to perform these "seamless switches"?

      Of course not, they're going to find new jobs and RUN.

      Don't be sure of that.

      When Exodus went bankrupt and was acquired by Cable and Wireless the majority of their team stayed. Most of the people I'm dealing with at C&W now were formerly Exodus employees. I wouldn't be surprised if many of the employees decided to stay. If they stayed around when their company was bankrupt I wouldn't be surprised if they stuck around for another transition. (well - at least that's what my sales rep is telling me!)

    12. Re:right off the top of my list... by richie2000 · · Score: 1
      I wonder what Illiad knows that we don't?

      And how about Slashdot?

      --
      Money for nothing, pix for free
    13. Re:right off the top of my list... by Anonymous Coward · · Score: 0

      Engineers are amazingly risk averse.

  5. Infrastructure by First_In_Hell · · Score: 5, Insightful

    Those data centers have nothing to worry about. Some company is going to buy all of that infrastructure & equipment for pennies on the dollar. It makes sense for them to leave it as is and transfer the existing customer base. Why would they reinvent the wheel if everything is already in place? No need to panic.

    1. Re:Infrastructure by WC+as+Kato · · Score: 1

      That would be great if it happened seamlessly. But what happens if the buyers figure they get a cheaper price the closer C&W get to pulling out? Big companies and other users can have a huge loss of connectivity if this doesn't work out right. It's pretty scary if your business survival depends on being connected.

      --
      --- I'm Green Hornet's sidekick not Inspector Clouseau's!
    2. Re:Infrastructure by Phroggy · · Score: 5, Interesting

      Those data centers have nothing to worry about. Some company is going to buy all of that infrastructure & equipment for pennies on the dollar. It makes sense for them to leave it as is and transfer the existing customer base. Why would they reinvent the wheel if everything is already in place? No need to panic.

      That's what I thought when my last place of empoyment went out of business - somebody would buy us and merge our network with theirs, or they'd just buy our 160,000 residential broadband customers, transition them to their network, and then dump us. Neither happened; the customers got screwed.

      --
      $x='S24;r)>63/* h@<5+oZ)32"5cz';$me='phroggy'x$];
      $x=~y+ -xz+\0-Tx+;print$_^chop$me for split'',$x;
    3. Re:Infrastructure by gbjbaanb · · Score: 1

      perhaps I am being very naive in terms of corporate accounting, but they are pulling out because they can't afford to continue running it all. Suppose they sell it all off to whoever happens to have cash these days (hmm. MS? err. is there anyone else?), do you suppose the new owner will keep the service levels going, or will they start to dump off the unprofitable bits (if they're not written off entirely), raise prices and sack more staff?

      C&W were losing $1m a day running those networks... the article also said that the US market was unsustainable (compared to the UK, Japan). I'd like to know exactly what they meant there as it may be a sign for future trouble in other US telcos.

    4. Re:Infrastructure by smart2000 · · Score: 1

      There is no need to reinvent the wheel. There is way too much telecom infrastructure at this point. So the few players left will just pick off the customers. If you are in an Exodus data center, run now.

      --
      To purchase it is not like spending money but rather it is an investment in the future in a blow against the empire
    5. Re:Infrastructure by anthony_dipierro · · Score: 2, Funny

      Someone would have bought it. You just weren't offering a low enough price. If you were, I would have bought it :).

    6. Re:Infrastructure by wik · · Score: 3, Insightful

      You might want to think twice before buying a losing business. Just because the upfront price is a bargin doesn't mean you won't be losing money through your nose.

      --
      / \
      \ / ASCII ribbon campaign for peace
      x
      / \
    7. Re:Infrastructure by BlackHawk-666 · · Score: 1

      But who wants to buy a business that is losing 1 million USD / day? Even if they gave it to me I don't think I could afford the daily upkeep ;-)

      --
      All those moments will be lost in time, like tears in rain.
    8. Re:Infrastructure by ajs · · Score: 1

      Exodus' customers make them an attractive buy. Residential customers aren't all that valuable, since the wires are what really count in that market. As others pointed out buying Exodus' old datacenters from C&W would net you some pretty large customers like Google. The ability to convert those customers into larger services is probably high on average....

    9. Re:Infrastructure by anthony_dipierro · · Score: 1

      Seems to me like it wouldn't be hard to make money off a broadband company. If the business was losing money they were doing something wrong.

      Of course this "price" would have to factor in all the debt, including any mandatory payments to all the employees I would immediately fire. But even if all I could salvage past that was the customer list, that alone would be worth something.

  6. So who is it all being sold to? by SkArcher · · Score: 1

    I distinctly hope it doesn't end up in the AOL/TW camp, after the media deregulation in the states that effectively lets them control the news.

    --

    An infinite number of monkeys will eventually come up with the complete works of /.
  7. Don't look up now... by Chris_Stankowitz · · Score: 1

    but here come the VCs. Vulture Capitalists that is.

    1. Re:Don't look up now... by Methlin · · Score: 2, Funny

      You mean The Register is going to buy them up?

  8. This really doesn't make sense.... by Desmoden · · Score: 5, Interesting


    The reason Ellen and her gang couldn't keep this running seemed to be they kept building new data centers. Capital costs were HUGE.

    But C&W bought exodus. After the fallout. For very very cheap.

    How could they not make a profit off this? Is maintaince costs still so high even with no expansion? They were CLOSING data centers not buiding them.

    This worries me, because if after the initial build up is done, you still can't make money off a colo then that means prices are WAY too low and for the 2 or 3 colo's left, we are going to see prices sky-rocket to come up to meet expenses.

    Sad day.

    1. Re:This really doesn't make sense.... by u-235-sentinel · · Score: 1

      I used to work for these guys in their Lindon site. Ellen and the gang were soo up beat and ready to conquer the world. That was 10 months before they went bankrupt. I'm still unsure why they were so up beat. They must have had a clue there were problems.

      Think about it. They had billions in the bank. This was in 2000 when the internet bubble had burst and they were doing very well (according to them at least). Makes me wonder if Exodus is another Enron.

      No I'm not trolling... I really was an employee and all the above is true as far as I know. After all this time I am curious.

      --
      Has Comcast disconnected your Internet account? Same here. You can read about it at http://comcastissue.blogspot.com
    2. Re:This really doesn't make sense.... by Artifex · · Score: 5, Interesting
      How could they not make a profit off this? Is maintaince costs still so high even with no expansion? They were CLOSING data centers not buiding them.


      When they bought the data centers, they also bought all the contracts for leasing, etc., which probably run for several more years.

      Ask companies like Verio about the bloodbath when they shut most of their new data centers down, but were left with 5 or 10 year contracts for those spaces, sometimes in extremely expensive locations. A lot of the equipment, like the big chillers and the fire suppression systems, probably still hasn't been paid for, either.

      C&W is looking at with its data centers, I'm sure. Not to mention that they probably have a lot of fiber sitting dark (unused) right now, and lots more under contracts for less than the fixed costs. The salesmen for most of these carriers, by 1999, 2000 and 2001, undercut each other to the point where they were writing money-losing contracts, just to meet their quotas and get their commissions. And quite often, the contracts went to companies that then cancelled or went out of business when the bubble burst.
      --
      Get off my launchpad!
    3. Re:This really doesn't make sense.... by MrLint · · Score: 2, Interesting

      PSI had a similar problem. As I understand from a former employee they had soem gung ho iguana VP that bought up everythign in sight, fired all the local staff and then none of their imported people could run anything. And as you see they died an undignified death. Both PSI C&W were in the 'expand at all costs' mode of the 90's well after that wasnt gong to work.

      *foom*

    4. Re:This really doesn't make sense.... by Anonymous Coward · · Score: 0

      Makes me wonder if Exodus is another Enron.

      It makes you wonder? How much more proof would you need to know that they were juggling the books?

    5. Re:This really doesn't make sense.... by zptdooda · · Score: 1

      If C&W borrowed heavily to pay for their expansion, then they still have to pay off their debt each period, even when normal physical maintenance expenses are low.

      This fixed debt repayment expense can put a huge strain on a company with declining revenues, and cause them to show big losses where otherwise they'd have operating profit.

      --
      Esteem isn't a zero sum game
    6. Re:This really doesn't make sense.... by Above · · Score: 1

      Part of the problem is that data center usage is shrinking. And no, it's not just the dot.bombs going away. A 1RU server today is much more powerful
      than a 4 RU server of just 2 years ago. Many companies have been able to reduce their footprint while increasing their processing power. Add to this the costs to air-condition and power this denser-than-planned expansion, and the data centers are having a tough time.

    7. Re:This really doesn't make sense.... by st0ner1 · · Score: 1

      The difficulty in making a profit in this 2 years ago was that all the players were making huge investments in expansion in an effort to capture market share. When the bubble burst they were all left with huge facilites truckloads of debt and no revenues to cover the debt. The difficulty now is related all those that are left are still in the process of eliminating the glut of capacity. There is still excessive capacity in this space and because of this nobody can charge enough to cover operating costs. You will see this change when the capacity is eliminated and all the smaller players are starved out. When this happens watch out the cost of hosting services will go through the roof and the small number of companies left standing should do well.

    8. Re:This really doesn't make sense.... by paitre · · Score: 2, Interesting

      This is -precisely- why I keep scratching my head when I see folks advertising "CoLo $100/mo no bandwidth limit!". There's absolutely -no- way they're making money. At -all-. An OC3 runs 12-15 thousand a month, minimum, now imagine a company that has 10 datacenters with 4 or 5 of those into -each-, and each one has multi-million dollar security systems, 3 dozen employees, etc.
      I can easily see C&W losing a million bucks a day.
      It's kinda funny. Folks have been saying for -years- that my previous employer's pricing was out of line with "reality" and was "too expensive". Come to find out, they were pricing things almost -precisely- right, and not caving to pressure from outside to cut prices, and they're -profitable- (and have been for, like, 2 years now)...the company is 7 or 8 years old).
      However, they -don't- do CoLo. There's no money in it. Managed hosting and hosting services, on the other hand, is a cash cow that -very- few companies are doing (or doing -well-).

      *shrug*
      I'm not suprised. Exodus imploded, Verio's been in the process of imploding, Rackspace supplements their income through sales of hardware and cuts their costs by building their own rigs, Alabanza is profitable, Interland may as well have imploded, etc. Basically, Alabanza and Rackspace are the two winners out of the entire industry, and -noone- is really competing well with either of them.

    9. Re:This really doesn't make sense.... by Martin+Blank · · Score: 1

      An OC3 runs 12-15 thousand a month, minimum, now imagine a company that has 10 datacenters with 4 or 5 of those into -each-, and each one has multi-million dollar security systems, 3 dozen employees, etc.
      I can easily see C&W losing a million bucks a day.


      The data center at which I work has fewer than 20 employees, we're at about 20% of capacity, and have a few OC3 connections and a couple dozen individual DS1 connections, though we have something like another 14Gbps of dark fiber, which we light up only as necessary. We've got guys that know what the hell they're doing, with three CNE's who have been in the business for more than 10 years each, plus a guy who has about 15 years of experience on data-only telecomm lines. We figure we can get up to between 50% and 75% of capacity with the addition of only one or two more people.

      A couple of other people here have mentioned the biggest problem: overbuilding, something the owner of my company has been smart enough to avoid. We're actually in close proximity to two C&W centers (one of which hosts one of my sites, so I'm thinking about suggesting to them they look a bit south), and hoping to pick up some of that business on the basis that we can fit their needs and we run a profit, not just the former.

      --
      You can never go home again... but I guess you can shop there.
    10. Re:This really doesn't make sense.... by Anonymous Coward · · Score: 0
      You are missing the bigger picture. Ellen and her gang were in business to make money off the stock price, not off company revenue.

      The company inflated the stock price by telling the street they had 4000~ customers. And they kept building data centers to support the illusion. They also showed a very low customer churn rate and high per customer profit.

      The reality was, they double and triple counted many customers (customer moves from 1 data center to another, keep the old location on the books and presto, 2 customers and double the revenue). They also created a system with no checks and balances, so sales reps would sign non-existent customers and put them on the books, while getting commission. The company had NO accounts receivable department, so nobody every got in trouble for not paying a bill. In addition, the only way a customer could be removed from the books was by a signoff from Ellen, EVP of Sales, and the CFO. So nobody ever got removed for non payment, and thus customer churn was LOW.

      So, in the end, that 4000~ customers was less than 2000. And of those probably less than 1200 ever paid a dime. But the company reported the revenue (in normal accounting fashion) when it was billed, not when it was collected. So, the revenue looked pretty good, its just that there was never any cash actually comming in. Most of Exodus' cash came from loans, hence the multi-billion dollar debt.

      This is why Ellen could be seen telling the street, and employees that everything was fine and Exodus was sound. And then, less than 6 months later, the company was filing for bankruptcy protection. And the shareholders and employees got screwed.

      Multi-billion dollar companies don't go from fine to bankrupt in 6 months unless there is some serious Enron type skulldugary going on ;-)

    11. Re:This really doesn't make sense.... by HeavensTrash · · Score: 1

      Umm, yeah, and a 1u server from today is also more powerful than a 1u server from just 2 years ago. So what's your point?

  9. They've been working on this for a while now by Anonymous Coward · · Score: 2, Interesting

    Back at the end of last year, we were alerted that C&W was selling their customers to New Edge Networks. Not happy.

    1. Re:They've been working on this for a while now by gothic · · Score: 3, Informative

      You must be in my general area.

      C&W cancled the remaining three years of our contracts on our lines (Which they also stated they could do with no repercussions), and told us to either find a new provider or sign a contract with New Edge Networks.

      Everyone in our company throught C&W was going to get sued for the contract thing. I wonder if any other companies have thought about it.

      They didn't leave us much time to get new lines in. I'm really grateful for the work AT&T pulled for us. Based on all estimates, we were going to have our new Ts in only days (2 at most) before C&W pulled our old lines. Not much time to might 9 Class C's of DSL customers, dial-up users, and dedicated T customers.

      I am now left with a very bad taste on how NewEdge treated us ("No, you *have* to sign at least a 1 year contract, we can't give you any less, because that's the deal we have with C&W" -- Each T1 from NewEdge was over 1100$ a month..Not a good deal), and how C&W treated us. Given the choice, I'll never do business with either one of them again.

    2. Re:They've been working on this for a while now by scooby2 · · Score: 1

      9 class C's and you arent multihomed via bgp? I'd hate to be a subscriber of yours.

  10. No! by mao+che+minh · · Score: 4, Funny
    My god, will someone please think about the porn!?!

    (all the porn that will be lost in those defunct datacenters)

    We must establish a plan of action, and organize to save the porn.

    1. Re:No! by TomSawyer · · Score: 2, Funny

      Look on the bright side! What's bad for porn is bad for spam?

      --
      If you disagree then it must be overrated, redundant or trolling.
    2. Re:No! by anthony_dipierro · · Score: 1

      My god, will someone please think about the porn!?!

      Someone already did.

    3. Re:No! by Anonymous Coward · · Score: 0

      Friend of mine was working for Exodus when they were trying to set up their datacentre in Amsterdam (long since shut). He had real problems getting either staff or contractors with the right skills because they were paid so much more in the porn sector. He ended up shipping manpower from GB.

    4. Re:No! by Anonymous Coward · · Score: 0

      [Warning: this post is entirely tangential.]

      I have been thinking about the porn, and I've concluded that it wouldn't be a terrible thing if this whole "hey, porn is mainstream now" thing were to reverse a bit. The children of the sixties were the beat generation. What are we going to be -- the porn generation? Wow, what a badge of honor: we're the generation that was so socially disaffected and relationally challenged that we decided to just openly say "ah, who gives a damn?" and make porn an accepted, regular part of life. Makes me proud, let me tell you.

      And, yeah, I realize "organize to save the porn" is actually intended as a joke. I might find it funny if the situation weren't so pathetic.

    5. Re:No! by Anonymous Coward · · Score: 0

      >The children of the sixties were the beat generation

      no they weren't. the beats predated them by quite a bit. ginsberg and kerouac were both born in the 1920's. and i don't think there were enough beats to call them representative of a generation.

  11. Don't you get it? by DrLudicrous · · Score: 2, Funny

    C&W is in the red, so to speak, hence the red bars!

  12. Quick... by PS-SCUD · · Score: 5, Funny

    Someone get a list of sites on their servers, so we can Slashdot them as a fairwell gift ;-)

    --


    "Much work is lost, for the lack of a little more." -Edward H. Harriman
  13. C&W by Stormcrow309 · · Score: 5, Insightful

    It is an interesting problem that faces IT. The hospital I work at uses a mainframe on another site. We are planning to return it to on-site because we had downtime because the company moved their mainframe 'just because' from one side of Atlanta to another.

    There is also the fun of who really owns your data? If the site just gets shutdown, how will you get data? (I know they should give it to you in tapes, but then you must find something they will work on.)

    --

    In God we trust, all others require data.

    1. Re:C&W by El+Pollo+Loco · · Score: 3, Interesting

      That is true. I work for the government. There are policys in place which require a investigation into where the data is being stored. As in, there has to be a really good reason why any data is stored offsite, and not just because it's easier.

  14. Something wrong with the numbers by cgenman · · Score: 2, Insightful

    According to the article, C&W posted a net loss of 6.4 billion pounds on revenues of 4.4 million.

    Either there is something wrong with those numbers, or the happy days of the internet boom are back!

    1. Re:Something wrong with the numbers by Tim+C · · Score: 4, Informative

      The £6bn loss includes write-downs on the values of some of their purchases; they haven't actually lost that much cash.

    2. Re:Something wrong with the numbers by glaqua · · Score: 1
      They haven't actually lost that in cash, but they certainly have lost it in value. The attitude that "its just a write-down, its no big deal" is just wrong.

      imagine you own a $1m house, and you borrow $750K against it. Now you do a write-down, and the house is now worth $100K. What will your creditors reaction be to "Its a writedown, I haven't lost that much cash".

    3. Re:Something wrong with the numbers by Tim+C · · Score: 1

      The attitude that "its just a write-down, its no big deal" is just wrong.

      Oh, I didn't say it wasn't a big deal - I just pointed out that it wasn't real cash that they'd lost.

      I know only too well what the last couple of years has done to their share price. At the end of 2000, it was up around £15 a share. At its lowest point a few months ago, it was about 30p. Last time I checked (this morning), it was a little over £1.

      One thing worth remembering, though, is that C&W didn't borrow any money to fund those purchases - they just burnt through (most of) what they had in the bank. In that sense, yes, they have lost money. The point I was making, though, is that they have not lost it in operating costs. They are in some trouble financially, but nowhere near as much as that £6bn figure makes it sound.

  15. This could get ugly by saintjab · · Score: 4, Interesting

    I know C&W controls a lot of connectivity throughout the US so this could be huge for a lot of corporations. It says they will honor their SLAs until they decide upon further action, but how well will they uphold the SLA? And more importantly does this come with a huge reduction in staff, as I would assume it will, and how can they uphold SLAs that are already being strained. Hopefully this will not result in any major down times. The beauty of the internet is its ability to adjust routes and optimize connections but loosing a big backbone provider could result is some serious revenue loss for some businesses.

    --
    "Reality is a crutch for people who can't handle drugs" - George Bernard Shaw (1856 - 1950)
    1. Re:This could get ugly by mr_z_beeblebrox · · Score: 1

      It says they will honor their SLAs until they decide upon further action, but how well will they uphold the SLA?

      This should not impact their service level in any way. I have 2 C & W T1s. In the last 7 months I have experienced 9 outages 2 were planned and 7 (over four months) were attributed to a guy in Ok with a back hoe. Additionally when C&W put in those T1s it took them 8 months to get the service up and running. SLAs are just a means to trap their victims it does not impact what they need to do. They told us we could not sue over SLA because they did not bill us for bad service (but they would not release us).
      I am glad that this worthless corporation has failed and glad that they are going. I hope that they are sold quickly though and their departure does not seriously impair the lives of their employees.

    2. Re:This could get ugly by saintjab · · Score: 1

      Don't get me wrong, I'm not claiming this is a bad thing in the long run. I'm more worried about having their staff reduced to a shell (in the interest of saving money until they restructure) and the cable in OK gets chopped by a back-hoe. Will they be able to restore service in a timely fashion? In the end this will all probably mean slightly better service and worse rates for consumers; but until then how well will C&W service its customers. Thats why I'm concerned that the SLAs will not be met.

      --
      "Reality is a crutch for people who can't handle drugs" - George Bernard Shaw (1856 - 1950)
    3. Re:This could get ugly by mr_z_beeblebrox · · Score: 1

      and the cable in OK gets chopped by a back-hoe. Will they be able to restore service in a timely fashion? In the end this will all probably mean slightly better service and worse rates for consumers; but until then how well will C&W service its customers. Thats why I'm concerned that the SLAs will not be met.

      I think that you missed my point. In the whole span of 2 years that I have had these T1s C7W has never met their SLA, not once. Every outage (and their were several) lasted days. This is why I am sure they could fire everyone without impacting customer service. It would be like being afraid the dead sea was going to dry up. C&W is the worst, goodbye to bad business. Our company signed a 5 year contract for those d*&n T1s and we were actually just getting ready to pay the 5000$ penalty to exit the contract. I guess we do not need to now.

  16. Another Blow to Internet Stocks by Anonymous Coward · · Score: 2, Interesting

    How large U.S. Internet customers with international operations, such as Yahoo and eBay, will respond to the shutdown remains to be seen, said Sandra O'Boyle, an analyst at the Amsterdam, Netherlands, office of Current Analysis. "There are still enough service providers in the U.S., although the number of international providers is dwindling," she said. "C&W was never able to really challenge the big U.S. players, such as WorldCom and AT&T and was losing a lot of money in this market, but it's still sad to see another competitor disappear."


    As competition continues to slim down, I am afraid that it is greatly going to increase the baseline costs of these large internet companies. Of course, this will eventually make its way down to us.

    Competition is good. Although I would hate for the government to regulate the internet, grants and loans for improvement of its foundation
    would help keep the current system strong and affordable.

    Davak
  17. C&W disappears? by UnknowingFool · · Score: 5, Funny

    What's next rap? Heavy metal? Opera . . . well, it was never that popular.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
    1. Re:C&W disappears? by Anonymous Coward · · Score: 0

      What's next rap? Heavy metal? Opera . . . well, it was never that popular.

      Perhaps A&W?!

    2. Re:C&W disappears? by Anonymous Coward · · Score: 0

      "We play both types of music here - Country and Western"

    3. Re:C&W disappears? by Anonymous Coward · · Score: 0

      Rootbeer?

  18. Okay... by SiMac · · Score: 5, Funny
    1. Re:Okay... by dr_dank · · Score: 4, Funny

      How many slashdotters could slashdot slashdot if slashdot could be slashdotted?

      --
      Where does the school board find them and why do they keep sending them to ME?
  19. Pulling out completely? by Phroggy · · Score: 4, Informative

    C&W does a wide range of things in the US, including operating colocation facilities, providing connectivity to businesses, operating dialup POPs, and running a major backbone. As a whole, these operations are losing $1 million a day (according to the article), but is it possible that one or two of them might actually be profitable? Will C&W completely pull out of the US, or will they keep a much more limited presense?

    Another thing: will some operations be sold to other companies (and their customers transferred without loss of service), or will everything be turned off and each piece of equipment sold to the highest bidder?

    I doubt anyone has the answers, but these are my questions. :-)

    Do I remember that Slashdot is/was hosted by Exodus? I'm too lazy to investigate.

    --
    $x='S24;r)>63/* h@<5+oZ)32"5cz';$me='phroggy'x$];
    $x=~y+ -xz+\0-Tx+;print$_^chop$me for split'',$x;
    1. Re:Pulling out completely? by Anonymous Coward · · Score: 0

      Yes. And poorly. Who needs capable employees when you can give some baboons pagers and call it a hosting company?

    2. Re:Pulling out completely? by ericesposito · · Score: 3, Informative

      I have been speaking with the C&W staff regarding this. In November, they closed down a number of under-used datacenters, moving customers into other C&W owned facilities. The Waltham, MA facilities are profitable, and quite full. (I've been to Boston 2 just recently, and it isn't empty.) They lost very few customers when they did this consolidation, which speaks well for them. Part of the problem is that the British stockholders are not comfortable in this market. It isn't what C&W was founded upon. They don't really know how to do it efficiently. Another problem, like another post mentioned, is that they are paying leases on empty spaces, some of which were leased during the boom. They are paying premium money for empty buildings. As those leases terminate, their balance sheets will look better and better. Their data centers aren't going anywhere. They are the largest hosting company in the US. (24 data centers AFTER they closed a bunch in November 2002.) Their Washington, DC facilties are nearly full. They are actually looking to get more space in that area. Their hosting customer list is very enviable -- 70% of the Fortune 500. They currently have a number of potential buyers doing due diligence. They won't go into details, yet, though. I am a little bit concerned, but any problems in the transition will be obvious fairly quickly.

  20. why C&W is leaveing the states by trinity93 · · Score: 1

    C&W tried to charge as much for a conection as they did in euroupe. who wants to pay 75 grand a month for a t-3 when everyone else is charegeing 3 to 8 grand. they tried to justify the costs to a prospective customer by claiming we have mci's back bone. when asked if they have upgraded it they say no. They are loosing money for one simple reason... POOR MANAGEMENT AND BULLHEADEDNESS

    --
    We substituted the coffee Slashdot normally drinks with "Sandoz Crystals", Lets see if they notice the difference
    1. Re:why C&W is leaveing the states by Anonymous Coward · · Score: 0

      We have subsituted the coffie slashdot.org normaly drinks with "Sandoz Crystials", Lets see if they notice the diferance

      What the hell are you trying to say?

    2. Re:why C&W is leaveing the states by Anonymous Coward · · Score: 0

      Sandoz Labs was the company that held the patents on LSD, and for the longest time, the only place makeing pharmicuticle grade LSD

    3. Re:why C&W is leaveing the states by Phroggy · · Score: 1

      They are loosing money for one simple reason... POOR MANAGEMENT AND BULLHEADEDNESS

      Funny, that was half the reason my last employer went out of business too.

      (For the other half, I blame the FCC and the economy.)

      --
      $x='S24;r)>63/* h@<5+oZ)32"5cz';$me='phroggy'x$];
      $x=~y+ -xz+\0-Tx+;print$_^chop$me for split'',$x;
    4. Re:why C&W is leaveing the states by BitHive · · Score: 1
      We have substituted the coffee slashdot.org normally drinks with "Sandoz Crystals", Let's see if they notice the difference

      ^^^ Fixed for you.

    5. Re:why C&W is leaveing the states by Anonymous Coward · · Score: 0
      Yup, C&W got MCI's backbone. And then they screwed it up so bad (in 1 year no less) that it was no longer stable. They then tried to sue MCI saying that MCI hadn't given them the "right" staff to maintain it. Never mind that the staff MCI gave them was the same people who originally built and maintained the backbone for MCI. Oh, maybe it was the part where the got rid of that staff after 6 months?!?!

      These people are morons, pure and simple. They have been going into a death spiral (remember that from the dot-bom days) since they were de-regulated in the UK.

  21. Looks like Slashdot will be moving... by MrBadbar · · Score: 5, Informative

    According to Netcraft, slashdot.org itself is using IPs owned by C&W.

  22. Open Relays by ipour · · Score: 1

    Between the porn sites, open relays and unresponsiveness re spam/TOS, I'm not surprised these folks are getting out of the business. Hopefully whoever buys the pieces knows what to do with them.

    1. Re:Open Relays by Phroggy · · Score: 1

      Between the porn sites, open relays and unresponsiveness re spam/TOS, I'm not surprised these folks are getting out of the business. Hopefully whoever buys the pieces knows what to do with them.

      Are you kidding? You actually think they're significantly worse than their competition? Policing abuse is expensive, and for a large company strictly enforcing their policies doesn't result in a signficant measurable increase in revenues or decrease in costs. Sure, if everybody did it, everybody's bandwidth costs would go down, but bandwidth is probably cheaper than manpower anyway.

      --
      $x='S24;r)>63/* h@<5+oZ)32"5cz';$me='phroggy'x$];
      $x=~y+ -xz+\0-Tx+;print$_^chop$me for split'',$x;
    2. Re:Open Relays by forkboy · · Score: 2, Informative

      Having sat on the receiving end of an abuse mailbox, I can tell you it's not THAT expensive to police.

      I worked for Inflow a few years ago as part of the team that does firewall and VPN services for their clients. They had 2 of us alternating coverage of the abuse box. It resulting in a couple extra hours a week of work for the both of us, but there was really no added cost for Inflow. Customers were made to sign a contract when they came in stating that they would not spam, run illegal web sites, etc. If they were found to be in violation, they started with a warning from us. If they didn't correct their action within 3 days, their internet service was turned off. (And by contract they were still compelled to pay for it)

      A well written term of service contract and a couple nerdy security guys is really all it takes to manage abuse.

      --
      This message brought to you by the Council of People Who Are Sick of Seeing More People.
    3. Re:Open Relays by Phroggy · · Score: 1

      Having sat on the receiving end of an abuse mailbox, I can tell you it's not THAT expensive to police.

      I have too; we had a full-time employee dedicated just to handling spam complaints, and several of the rest of us would help out as needed. It was about all we could do to stay caught up with it enough that large ISPs like AOL and RoadRunner didn't blacklist our IP blocks (which would have resulted in many of our customers being unable to send mail to customers of those ISPs) - if somebody was out sick and we fell behind, we could usually expect to receive another threatening e-mail from AOL's abuse department.

      So, yeah, it cost us money (dedicated employees) just to stay on top of it enough to satisfy AOL. Actually processing every complaint in a timely manner to the satisfaction of all parties involved would have required more staff.

      We weren't as efficient as we would have liked to have been, but we were constrained by company policy and our unresponsive legal department. If we'd been able to set our own rules, it would have gone a little more smoothly, but we would still have had to deal with the volume of issues.

      Admittedly, an interesting thing about spam complaints is, the faster you handle it, the less work you have to do; the volume would have gone down if we'd been able to get on top of it better - but that would have required taking more time per issue.

      --
      $x='S24;r)>63/* h@<5+oZ)32"5cz';$me='phroggy'x$];
      $x=~y+ -xz+\0-Tx+;print$_^chop$me for split'',$x;
  23. I can't wait for the day by reverendG · · Score: 1

    I can't wait for the day that I can lose almost $10 billion (that's 9 frickin zero's) two years in a row, and still be capable of 'restructuring'.

    On a similar note, a Trivial Pursuit question the other night said that some crown prince of Brunei spent $16 billion in one year. Had to get a gold plated toilet brush, among other things.

    Which is a better waste of money? Just curious.

    --

    Why should I argue rationally with someone being irrational? I'll just mock them instead.
    1. Re:I can't wait for the day by Lawrence_Bird · · Score: 1

      most of that was a write down of good will. They basically bought things with their stock and it goes on the books as if it were like a cash purchase (over simplification). Now that the 'value' of those assets are seen to be, well, little, they have to take a non-cash charge - the assets are written down, and at the same time so is stock holders equity (or lack thereof!).

    2. Re:I can't wait for the day by Cedric+C.+Girouard · · Score: 1
      I can't wait for the day that I can lose almost $10 billion (that's 9 frickin zero's) two years in a row, and still be capable of 'restructuring'.


      They're just bailing out of the states if I read this correctly.

      I used to have a T1 with them in the carribeans, and although I had shitty service, no QoS, no support outside business hours, and no reliability (which were all in my contract... But then again, who are you going to sue ?) they still managed to charge us 25K US$ a month for a T1... So I said, I'll go to the competition... Whoa there boy... There is NO competition. They're a monopoly on most of those backwater places... And trust me, they're not a loss-leader there... Phone is expensive, cell is expensive, connectivity is expensive.

      And they are on of the big boys IIRC... So just getting out of one money losing market will not take'em out of business...

      --

      Marriage is considered capital punishment for the theft of a goat in some third world countries...

    3. Re:I can't wait for the day by Ancil · · Score: 1

      Well, at least the prince still has a nice toilet brush.

    4. Re:I can't wait for the day by AceM2 · · Score: 1

      Dunno about a gold plated toilet brush, but.. It's good when extremely rich companies and individuals waste money.. It gives people jobs ;)

  24. As a general rule of thumb, I find that ... by burgburgburg · · Score: 5, Funny
    whenever anyone counsels us not to panic, panic is in fact the best course of action. If you'll excuse me now, I'm going to run around the room, flailing my arms about and screaming at the top of my lungs. Well, more then I usually do.

    Nothing to see here. Just move along. Ignore the smell of burning monkeys. Flood? What flood? Keep moving, you looky-loos.

    1. Re:As a general rule of thumb, I find that ... by Anonymous Coward · · Score: 0

      Panic is good! At least it was good for me... in a sense.

      When Exodus filed for Chapter 11, our sales department visited all our clients to assure them that this wasn't the end of the world, and Exodus would continue to host their servers. This was true. HOWEVER, our sales department was actually in panic and bought a shit load of equipment as "backups" in case the worst happened, and placed the "backup" hardware in a different data center.

      2 months ago, our company finally kicked the bucket. I managed to pick up about $150,000 worth of UNUSED "backup" hardware for about 1/20 the price, which is happily humming away in my server room now.

      (Luckily, I had a job offer BEFORE the company bailed out, so I get to laugh at this and keep the hardware instead of selling it on eBay to scrape in money to pay my rent....)

    2. Re:As a general rule of thumb, I find that ... by Anonymous Coward · · Score: 0
      Panic might be warranted in this situation. Who exactly in the US market is in a position to buy them? And, if a large Telco/Colo/Cable/Backbone company were to buy them, they would be hard pressed to deal with a lot of the problems C&W has created since their buyout of Exodus. Exodus used to provide at least 2 connections into each data center through disparate carriers. Everything is now on the C&W backbone. This not only means reduced redundancy and QOS, but it means anyone who tries to buy the operation will be facing at least a few months of being stuck w/ the cost and associated issues of this network.

      In addition, since shortly after taking over the old Exodus operation, C&W mangament has been gutting the staff in order to make the books look more attractive to a buyer (don't think for a minute this hasn't been in the works for about 7 or 8 months). So they have reduced head-count w/o performing the due-diligence to scale back the operations and support requirements.

      As a glaring example, C&W fired all their customer response center people and moved the function to their old telecom customer service center in Virginia. Cheaper, less qualified people. Initial call wait times have gone from under 1 minute to over 30 minutes in the worst cases. They have also cut or eliminated their NOC staff in many of their data centers.

      We used to be a customer, but at the prices they charge, one expects a premium service. Well, they no longer deliver that. And with space available at other colo facilities, C&W is going to be hard pressed to find a buyer.

  25. From the article... by AltGrendel · · Score: 2, Insightful
    "C&W was never able to really challenge the big U.S. players, such as WorldCom and AT&T and was losing a lot of money in this market, but it's still sad to see another competitor disappear."

    They are competing against a big company that is already bankrupt and in protection in court.

    --
    The simple truth is that interstellar distances will not fit into the human imagination

    - Douglas Adams

  26. Mae-East by skyryder12 · · Score: 5, Interesting

    Isn't Mae-East located in one of the C&W buildings in the Tysons Corner, Viriginia, USA area? I thought that was where the NSA had installed all of their Echelon sniffers. I bet there is some real back room skullduggery going on if this is true.....

    1. Re:Mae-East by confused+one · · Score: 1

      And it will no doubt be protected, if true. They will see to it.

    2. Re:Mae-East by TheSync · · Score: 4, Informative

      MAE EAST isn't really just a "place" any more, it is more of a concept, and exists in several places. MAE EAST is operated now by MCI.

      I remember seeing it when it was a small room in an underground parking garage. Net techs left their cans of Mountain Dew in the corner.

      Today MAE EAST ATM service is avalable in Vienna, Reston, and Ashburn. It has ceased to really be one room, one floor, or even just in one building.

      Near the original MAE EAST is also a major AboveNet (now MFN) collocation facility. That is where Geeks in Space: Slashdot Radio used to be served from.

    3. Re:Mae-East by mobileskimo · · Score: 1

      Not a major MFN facility. THE major MFN facility. Atleast the ISX/ISP part. Though MFN runs a great deal more than Abovenet's relics.

      --
      "Last one in is a rotten goblin!" - Kepp
    4. Re:Mae-East by Anonymous Coward · · Score: 0

      Maybe MCI could buy C&W's infrastructure if they weren't in such bad shape themselves. That'd certainly be funny to see it come full circle from MCI to C&W back to MCI. ;-)

  27. Please be precise: the correct name is by burgburgburg · · Score: 2, Funny
    Microsoft/AOL/TW/Fox/MPAA/RIAA

    And news reports show that media deregulation is nothing to be feared.

    1. Re:Please be precise: the correct name is by Surak · · Score: 4, Funny

      You left some out: GE/Viacom/Disney/Microsoft/AOL/TW/Fox/MPAA/RIAA

    2. Re:Please be precise: the correct name is by realdpk · · Score: 1

      What about: ClearChannel/GE/Viacom/Disney/Microsoft/Haliburton /AOL/TW/Fox/MPAA/RIAA

  28. Growing broke by zptdooda · · Score: 3, Insightful

    "And we need to concentrate on those markets that are sustainable ... "

    Sustainable here means that you're collecting enough revenue (cash is good) to pay for all the inventory you're building. The first sign of trouble is a cashflow shortage.

    Unmanaged growth is a temptation that's caught so many telecoms. Maybe they were thinking of achieving economies of scale or putting too much weight in the "grow or die" paradigm. Or maybe their CEO's were making pride-based decisions.

    It's human to be overly optimistic about a venture that you're starting. Business plans quite often anticipate large profits in the future to pay for current excess spending and growth.

    There's a Burmese saying "Big tiger, big paws", the analogy being that a large entity needs a lot to keep it upright - has big expenses and maintenance needs. This is even more significant when it's growing.

    --
    Esteem isn't a zero sum game
  29. Netcraft Confirms: Slashdot is Moving! by Anonymous Coward · · Score: 3, Funny

    Sorry, someone had to say it.

  30. One step closer... by NeB_Zero · · Score: 1

    Looks as if this brings us one step closer to a few companies controlling the entire internet space. Just like public utilities. Next thing you know, there will be more gov't control and regulation on the 'net slashdot will be a felony.

  31. c & w balls out by machine+of+god · · Score: 1

    What? Did anyone else read that too? Then I hear they're throwing in the towel. That's not balls out. Lightweights.

    1. Re:c & w balls out by NeB_Zero · · Score: 1

      they are bailing out of the US... or did you not visit their website?

  32. my impression by awb131 · · Score: 5, Insightful

    Is that Exodus and other hosting centers are having trouble because they're players in a shrinking middle market for the business of hosters that are:

    • Too big to use a dedicated host at a place like dreamhost or rackspace
    • Not big enough to host their own data center, as most major corporations are starting to do

    The price/capability ratio of dedicated hosts (probably Linux/BSD on x86 hardware with really fat pipes) is falling. The difference in total cost between hosting something at Exodus and just building a good server room somewhere on a corporate campus or two is falling. (Initial build-out is expensive, but property is a pretty safe place to sink money these days, plus you can expense it and keep expensing the depreciation.)

    I'm not saying there's nobody that needs Exodus-type services, but it's mostly folks that don't fit into one of these other (growing) categories.

    --
    "There is no night so forlorn, no mood so bleak, that it cannot be infused with pleasure by tender meat..." - R.W. Apple
    1. Re:my impression by Anonymous Coward · · Score: 0

      For smaller businesses, the build out cost is negligable. Especially for a B2B type site such as ours. Our webserver is a hand-me-down p3 500 on a T1. It's no big deal, since we get on the order of a dozen hits a month, if that.

    2. Re:my impression by Anonymous Coward · · Score: 0

      Also keep in mind that Ellen's original business model for Exodus didn't take into account Sun Netra T1's and the like. Data center companies got a huge woodie about selling space to people using things like the Compaq Proliant 3500. But economics being what they are, it wasn't long till companies started deploying servers that took up 1/10th the rack space. In addition, this new density meant more heat burden on the hvac systems. And in short order (ok, maybe 1 to 2 years) customers that used to need 1000 sq feet, now only wanted 100. But they produced the same amount of heat as before and pulled the same power. So the big money maker (other than pro-serve) went away, and the business model sucked donkey-balls.

  33. Cost of leases by Anonymous Coward · · Score: 0
    I stole this paragraph wholesale from a Yahoo finance post, so don't think I'm intelligent - thus the AC post. Basically it comes down to Exodus not planning to have a future by putting as many monkeys on its back as would fit.

    -------
    The webhosting/colo businesses - C&W bought Digital Island and then Exodus Communications. Exodus at that time was market leader in colo, hosting a lot of very large operations such as Yahoo. But EXDS and Digital Island had each spent a fortune on equipping their data centres, and had committed to heavy exposure on building leases. This lease problem is the biggest headache for C&W - some estimates talk of a cost of $700 million to terminate. This is compounded by a haemorrhaging of customers.

    ...
    As someone else has pointed out, the only likely way C&W could "sell" their US operation is to pay someone to take it off their hands. Given the scale of the Exodus lease problems, C&W would probably have to pay several hundred $M. Those massive colo sites have little alternative use - they are not like office blocks that can find new tenants. Many of them were taken in ultra-expensive sites like Santa Clara at the height of the dotcom/property bubble.
    ---------

  34. Re:No! [joking!] by Telastyn · · Score: 1

    At least that would be one case where people aren't crying 'save the children'!

  35. WHAT?!?! A&W leaving the US?!?! by Howard+Beale · · Score: 1

    Oh my god, no more ROOT BEER!!!!!!

  36. cw.net was last updated in the 70th... by CodeMaster · · Score: 4, Funny

    Check out their corporate site cw.net.
    The footer at the bottom says:

    © Cable & Wireless, 2003
    Updated January 1, 1970 GMT
    IE Webmaster: webmaster@cw.net

    Talk about staying on top of things...

    1. Re:cw.net was last updated in the 70th... by Anonymous Coward · · Score: 0

      turn on javascript...

    2. Re:cw.net was last updated in the 70th... by CodeMaster · · Score: 1

      Ohh, it's there all right.
      Too bad that the C&W webmaster can't figure out his serverside from his clientside!
      Now what am I supposed to think about the competency of these guys? (not that it has been ranked too high in my dictionary...)

  37. Clueless by eludom · · Score: 3, Interesting

    The article in todays' WSJ (sorry, no link,
    I read the dead-tree version) cited the
    basic problem in the telco industry as being
    overcapacity, but then goes on to quote
    the C&W prez as saying that they're going
    to try to resell excess capacity to make
    up losses.

    The're also going to try to "hang on to
    existing revenue streams" while exiting
    the US Market (so, exactly what valuable
    assets are you selling, and who, exactly
    is buying ?)

    Also says that the blulk of their revenue
    comes from web hosting...there's a winning
    1998 market (I just left a large recently
    renamed telco doing securtiy for web hosting).

    It's corporate "leadership" without a clue.

    ---eludom

  38. Good riddance, Clueless & Witless... by Pig+Hogger · · Score: 3, Insightful

    Good riddance. Clueless and Witless has been one of the worst spam supporters that ever been.

    1. Re:Good riddance, Clueless & Witless... by RKloti · · Score: 1

      1 7 ms 8 ms 6 ms *.*.*.*
      2 9 ms 10 ms 10 ms gig-15-0.blxOTF001.cablecom.net
      3 27 ms 13 ms 9 ms pos-1-0.blxZHT001.cablecom.net
      4 28 ms 7 ms 7 ms zar1-so-2-2-0.Zurichzuh.cw.net
      5 11 ms 8 ms 12 ms ycr1-ge-3-3-0.Zurichzuh.cw.net
      6 18 ms 24 ms 15 ms bcr1-so-0-2-0.Frankfurt.cw.net
      7 186 ms 179 ms 186 ms dcr2-loopback.SantaClara.cw.net
      8 186 ms 209 ms 186 ms bhr2-pos-0-0.SantaClarasc3.cw.net
      9 186 ms 186 ms 186 ms csr1-ve240.SantaClarasc3.cw.net
      10 179 ms 181 ms 180 ms google-exodus.exodus.net
      11 187 ms 187 ms 185 ms 216.239.48.126
      12 187 ms 187 ms 192 ms 216.239.48.242
      13 187 ms 183 ms 186 ms www.google.com


      Google is apparently itself a customer of C&W. Incidentally, so is Slashdot:


      1 8 ms 7 ms 7 ms *.*.*.*
      2 14 ms 15 ms 20 ms gig-15-0.blxOTF001.cablecom.net
      3 8 ms 8 ms 9 ms pos-1-0.blxZHT001.cablecom.net
      4 7 ms 8 ms 11 ms zar1-so-2-2-0.Zurichzuh.cw.net
      5 10 ms 7 ms 9 ms ycr1-ge-3-3-0.Zurichzuh.cw.net
      6 15 ms 14 ms 14 ms bcr1-so-0-2-0.Frankfurt.cw.net
      7 186 ms 181 ms 191 ms dcr2-loopback.SantaClara.cw.net
      8 187 ms 188 ms 188 ms bhr1-pos-0-0.SantaClarasc8.cw.net
      9 189 ms 186 ms 186 ms csr2-ve243.SantaClarasc8.cw.net
      10 183 ms 183 ms 181 ms 66.35.210.202
  39. no surprise by Anonymous Coward · · Score: 2, Interesting

    I once worked for a company that used Digital Island (and then Exodus) for a lot of our media streaming needs. You could see the breakdown several months before C&W came in. Even after terminating our account (we owed them several hundred thousand through no fault of our own) and weeks of nasty phone calls, we were still able to walk into the data center where we were co-located and pick up about 10K worth of hardware.

    They even had boxed it all up nicely for us. You'd think they would want to hold onto this for a bit. By the looks of the center, they certainly weren't hurting for free rack space.

    I still get messages about maintenance and routes going down, almost daily. *sigh*

  40. No Suprise Here by Anonymous Coward · · Score: 5, Informative

    As a current C&W employee..

    I have to say there really isn't any suprise to this. While its hard for any business to make a profit off of low-margin web-hosting, C&W was an ill-suited company to try and do so.

    During the past ~2 years since it acquired both Digital Island and Exodus, C&W business model has been to lay-off people who knew what they were doing, and promote those who didn't (usually to the VP level).

    The whole business is run by a very top-heavy management structure who have no interest whatsoever in doing what is good for the company. Instead upper management have only been concerned with building their own empires, even if duplicate functions existed elsewhere in the company.

    There is only so long a company can exist with such an attitude, and C&W has hit the end of the road.

    1. Re:No Suprise Here by Anonymous Coward · · Score: 0
      You sure hit that one on the head!

    2. Re:No Suprise Here by leviramsey · · Score: 1

      This is argument #1 for increasing stock dividends. By reducing the capital available for personal empire building by management (and instead allowing stockholders to do that), this sort of stuff is a lot more difficult.

    3. Re:No Suprise Here by AKnightCowboy · · Score: 1
      There is only so long a company can exist with such an attitude, and C&W has hit the end of the road.

      Perhaps it's time to transition the company over to the government. The government has been promoting clueless civil servants into upper management for hundreds of years. They'd be a perfect match.

  41. Mirrors by Anonymous Coward · · Score: 1, Interesting

    Google has something like 10 US mirror/datacenters. www-cw is one, but there's also www-va, www-sj, www-fi, etc. Sometimes you can get different results from them.

  42. GREAT! by Trailer+Trash · · Score: 1

    My spam traffic will probably drop in half with those bozos off the internet. Good riddance!

    Michael

    1. Re:GREAT! by Anonymous Coward · · Score: 0

      Agreed, The only association I've ever had with them is entering their IP blocks in my filter.

  43. Worst company ever by finder · · Score: 2, Interesting

    I used to work for them three years ago...needless to say it was already a sinking ship then and I'm glad I got out when I did.

  44. Question ... by peatbakke · · Score: 1

    How frickin' hard is it to make money in their line of business? You're providing something that almost every business and individual in the western hemisphere wants ... how can you blow that kind of opportunity?

    I suspect this has more to do with shitty management and "expand at any cost" business practices than a failure of the actual market.

  45. why doesn't Microsoft just buy them? by Anonymous Coward · · Score: 0

    ...along with every other company remotely connected to the computer/communications/media industry.

    1. Re:why doesn't Microsoft just buy them? by BluSkreen · · Score: 1

      FWIW, MSN occupies most of the old Exodus SE2 datacenter and a good part of the newer SE3 facility...

  46. University of California by nek · · Score: 2, Informative

    When I worked at the University of California (up till July 2001) C&W supplied the bandwidth for the entire UC system, except for Internet2. I wonder what kind of scrambling happened between then and now, as it appears that the UC System is now on Qwest.

  47. Poor C&W by ethaz · · Score: 2, Interesting
    They bought MCI's original network after MCI had to sell it when they acquired UUNet. They didn't realize they were doing business with thieves. MCI/Worldcom promptly violated their no-compete, no-poach agreement by bidding to replace C&W (i.e., Old MCI) pipes with UUNet pipes within months of the deal. There were also all sorts of problems with shared MCI/C&W facilities.

    Yet another reason that it should have been Bernie Ebbers and John "The Internet Doubles Every 90 Days" Sidgemore in handcuffs yesterday, not Martha Stewart.

  48. It's easy to lose money ... by johnlcallaway · · Score: 4, Interesting

    ...when all of your data centers are unoccupied by paying customers.

    I used to work for a customer of Exodus/Cable Wireless, and saw the exodus from Exodus. I remember the boom years when I only went in on Sunday because that was the only day I could get a parking spot and not have to park across the street. I remember when you could see Dell and Compaq and Gateway and Sun systems in every cage, wall to wall. When you could sit in your cage and have conversations with two or three other customers and learn some really neat stuff. Where the soda and chips were only 25 cents. Where security walked you to your cage and unlocked it for you.

    The last few years saw the datacenter become a ghost town. Granted, it was a 62 degree ghost town, but still a ghost town. Where every cage around ours became empty, and we even went from a full cage to a half cage thanks to faster and smaller equipment. The parking lots are never full, soda and chips are now priced the same as everywhere, and no one to talk with. And now security gives you the key to your cage and you walk past rows of empty plastic-coated wire mesh cages.

    How do you lose money?? Because you have to run a gazillion foot data center, with all of it's associated infrastructure needs, and you don't have any customers in it. Compare it to the cost of running an apartment building if it is only half occupied. There are still maintenance costs, but now you only have half the tenants to cover it. You still have to heat and cool the empty apartments, although not the same as the rest, and you have no one to pay for it.

    Don't get me wrong though. I loved the facility. It was clean and well maintained. I could get away from the home office and work without being interrupted. I didn't have to worry about AC and power and network outside of our cage. If C&W was still a viable company, there would be no hesitation about using them for a data center.

    But the 90's are over ...

    --
    I rarely read replies, it's my opinion and if you thought about your opinion a little more, I'm OK with that.
    1. Re:It's easy to lose money ... by Anonymous Coward · · Score: 1, Interesting

      That's exactly what I've seen in another of their datacentres. I used to work for Exodus, and having had their stock run up to $100 per share they became an extravagent company. There was a frontier mentality among the sales people, who were paid commission as soon as a deal was closed, and had no financial interest in the execution of the business. Hell, there were times when techies were chucked out of sales meeting lest they point out to the customer that the solution being put forward wouldn't work.

      When I got involved in Exodus (mid 2000), they were expanding at 40% per quarter, and while working for a contracting business is painful, working for one which is growing at that rate is also painful. To get capacity available as fast as the growth trend was indicating it would be needed, a lot of debt was used to finance expansion, and long term leasing deals were made without due diligence - judgement was clouded by the need to get capacity now.

      Of course, many of the customers seemed to have the same business plan:
      1) Get some venture capital
      2) Spend it all on marketting, with a little going on creating a website
      3) Lose lots of money
      4) Get more venture capital
      5) er ...
      6) that's it
      7) go bust

      but all the sanity about the creditworthiness of your customers was again subjugated to the frontier mentality of getting market share.

      Of course, the later history is well rehearsed. The first warning sign for me was when I was sent on a training course and told "pay with your credit card and claim it back" - to me that could only mean that the company was no longer creditworthy, and I sought employment elsewhere. Eventually C&W took over the datacentres and left Exodus as a rump campany with nothing but a load of debt. But those datacentres (particularly in the US) were based on long and expensive leases, which were transferred to C&W - hence the inherited liability.

      The sad thing is that, then as now, Exodus/C&W is a top provider of space and power and bandwidth, with excellent connections. But they massively overexpanded in a wasteful and ill-advised fashion, and the liabilities are still dragging them down.

    2. Re:It's easy to lose money ... by Saeger · · Score: 0, Flamebait
      I remember the boom years when I only went in on Sunday because that was the only day I could get a parking spot and not have to park across the street.

      What was the problem with walking across the street to work? Your legs broken? You weigh 500 pounds? Unbelievably lazy? Too "self-important" to actually walk? ... What?

      --

      --
      Power to the Peaceful
    3. Re:It's easy to lose money ... by johnlcallaway · · Score: 1

      You're right of course, why would I want to park in a lot that is close by and is monitored by security? I just love hauling servers across four lanes of busy traffic in 90 degree/75% humidity. It's great excercise and helps to burn in the equipment. I love carrying 100 pound servers by myself and dodging cars. It helps to burn off my 500 lbs of fat. Besides, if I get hit by a car, my company has insurance and I could collect workers comp. It's also great parking in a hotel parking lot that has no security. I don't really need the thousands of dollars in computer and diagnostic equipment I have in my trunk. I didn't pay for it, so why should I worry about it.

      The poster sounds like one of those lazy, self-important, junior developers who have absolutly no idea what it takes to set up a system. One that is always screaming 'My program doesn't suck ... just buy a faster server' even though they only know how to write single-threaded applications that have no concept of recoverability or scalability and couldn't take advantage of a larger server anyway.

      Maybe someday he'll grow up...

      --
      I rarely read replies, it's my opinion and if you thought about your opinion a little more, I'm OK with that.
  49. A classic case of mismanagement by cat_jesus · · Score: 5, Interesting

    I worked at CWUSA from 94 to 2001 and I have been predicting their demise for years now. Around 96 the executives were complaining that they were only making 3 cents of profit for every 6 cent call. Having had experience in a mature sector(retail) I recognized immediately that they were spoiled by huge margins. I knew that once the telecom industry became saturated and they actually had real competition that they would either adapt or change. Management did change but instead of concentrating on their core business, telecom services and custom billing for small businesses(which brought them to the Billion in rvenue mark), they decided to buy MCI's crappy internet backbone and become an internet company. Nevermind that they had no experience in this market and the executives didn't know what they were buying. Internet was sexy and they could market that much easier than boring old long distance. Their long distance service was an incredible cash cow.

    New offerings were brought up and provisioning and billing systems were rushing into place(sometimes). Often a new product would have to be provisioned manually and there was no way to tell if a customer wasn't paying their bill for well over a year after they first started selling the product.

    Then to top it all off the mothership(PLC) decided they were going to become a global organization and they ended up picking up the biggest inept blowhards in CWUSA to help create the global organization. While all this was going on they were still having their yearly layoffs, which they did even when they were making a billion a year. Management would lay off the workers and keep the management around. It was not uncommon to know of managers and directors with no people.

    Not long after I left they decided to lay off all the techincal people and outsource the work to IBM. Many people were gone for good and many were tranferred to IBM. But the funniest thing about this grand plan was the first task of the plan-- assign a senior management team to organize the layoffs(to them management teams were the "magic pixie dust"). Those people were so management happy that they have a few building in Vienna Virginia stocked with managers, senior managers, director and AVPs that are quite adept at bullshitting, creating powerpoint documents and dodging bullets but they can't manage a damn thing. I could write for hours about the shenanigans that went on in that place but I'll just end with something an old relative who has been a businessman since WWII told me. "Anyone can make money when times are good, it's when times are tough that you find out who the real businessmen are." They were poseurs and it was only a matter of time before their hubris coupled with reality bite them in the ass. The sad thing is these same losers will end up getting nice cushy management positions at Verizon, Worldcom or AT&T and probably for more money.

    1. Re:A classic case of mismanagement by Jucius+Maximus · · Score: 1
      "I knew that once the telecom industry became saturated and they actually had real competition that they would either adapt or change."

      Well, one or the other ;-)

  50. Bah! Too Much for Consumers to Remember by arthurs_sidekick · · Score: 1

    OmniCorp.

    --
    "Oh, I hope he doesn't give us halyatchkies," said Heinrich.
  51. First hand experience by Anonymous Coward · · Score: 2, Informative

    Not sure how the situation is in the U.S., but Exodus Tokyo is, well, pretty freakin' empty. C&W bought them, for a quite cheap price actually, and decided to use Exodus as a "premium service" since C&W already had some nice datacenters near by. However, the costs were STILL prohibitive, and as far as I could tell (by walking around the floors I had access to pre/post Chapter 11, up to a few months ago) there are rows of cage space after cage space that never have, and still have, no occupants. It's really weird to see this "Matrix Ammunition Depot" looking baren area, with an EMC monster sitting alone in a single cage.

    I checked the power supply/regulator and the load was around 5%, so they basically have massive redundant equipment along with airconditioning (which chilled the hell out my ass May last year when I was stuck there for a few days, thank you very much) that eats up a lot of power for no particular reason other than to cool off a bunch of nothing (+ my hot ass). I'm sure that's just a small part of the "un-necessary" running costs involved.

    Add that to the fact that they (relatively) recently sold off Global Online (the ISP division that was originally acquired as a "foot in the door" when Exodus originally landed in Japan) which was actually profittable, and things start to fall into perspective. I wouldn't be amazed at all if C&W bails out of Exodus Tokyo soon too. (As if there haven't been rumors about this for quite some time.)

  52. Re:Bah! Too Much for Consumers to Remember by Anonymous Coward · · Score: 0

    Is that anything like ConHugeCo?

    And if you get the reference, Cap'n Hector says, "Pay your shareware fee!"

  53. no customers == no money by Doktor+Memory · · Score: 3, Interesting

    It's very simple: there are no customers.

    I've walked around a bunch of the old Exodus datacenters in New York City: even the "older" ones (ie the former GlobalCenter colo on 8th avenue, and the original NJ1 at Exchange Place)) were like ghost towns: row after row after row of empty racks.

    The colocation "boom" of the 1990s was a pyramid scheme: VC-financed colo companies selling space at completely fictional rates to VC-financed startups. As soon as the venture money dried up, the small customer vanished...and then the big customers vanished...and then the behemoths themselves began to die off.

    No matter how much you cut your costs, you can't make a profit if you have no customers.

    My completely off-the-cuff guess is that even if C&W mothballed 90% of their colo facilities in the US, and all of their competitors (UUNet, AT&T, Globix, Level3) did likewise, there would still not be enough customers to keep them afloat. Colo is expensive, and there just aren't that many companies who actually need six-sigma uptimes. (Not that any of the colo providers ever came anywhere near their promised reliability numbers in practice, but that's a whole different rant.)

    --

    News for Nerds. Stuff that Matters? Like hell.

    1. Re:no customers == no money by Anonymous Coward · · Score: 0

      (Hi Doc - inky)

      Okay, here's a summary of the past couple years, condensed down into two pages.

      - C&W buys Digital Island, which does high-margin colo in half a dozen global cities and is just short of profitable. C&W's network leveraged to reduce costs for colo, profitability in sight.

      - C&W buys Exodus out of Chap 11, with debt approaching a Bush budget, waaaay too many DCs, not enough customers, and nothing like profitability in sight.

      - C&W says 'oh my god, it's so expensive! Let's lay off all the redundant people from having 3 companies to do one job (billing, operations, etc) and get the costs under control.'

      - C&W says 'hey wait, we're still spending assloads more than we make. uh, why?' Answer is 'bought wayyyy too much of Exodus.' Finally figure out that you have to close about half those locations. Maybe more. Plan well under way to accomplish this, first few DCs are already closed. Profitability in sight again (finally).

      - C&W stock tanks. Stockholders not patient, consider C&W to be like T-bills for investment. Not true this year.

      - Stockholders oust the guy whose plan (a basically good one, but the exodus thing just stank) it was to transition to IP.

      - New managers decide they like new job, have to get rid of US business without pissing off all the big global customers (especially the high-margin ones from Digital Island, like Microsoft and the banks). Decide to sell.

      - They have to announce they're selling it before it's leaked, but they haven't got a buyer, so it sounds flaky when announced yesterday.

      Ta Daaaa! Two years in two pages.

    2. Re:no customers == no money by Sycraft-fu · · Score: 2, Insightful

      I dunno, some companies seem to make it work. Take Pair networks (www.pair.com) for example. They are a profatible bussiness, and have been for quite some time. All they did until receantly was house servers. They don't actually do colo, but they do something real similar. You rent a server form them which is dedicated to you. They own it and manage it (which is nice since it is their job to keep it secure, which they do real well) but it is all yours. They also do the normal shared server hosting as well. They have been operating for like 8 years now and making money doing it.

      Obviously many, many companies got really stupid with the colo thing,b ut that doesn't mean there isn't a market for it, or something like it.

  54. C&W Leaving US Been Coming for quite some time by sjvn · · Score: 4, Interesting

    The signs were theee in the fall of last year. I wrote about it, and why hosting businesses tend to fall part, earlier this year.

    http://www.practical-tech.com/network/n04172003. ht m

    Long story short, stupid business plans and lousy management equals failure. C&W's US business had both in spades. The real question, from where I sit, is will C&W continue to survive in the UK? That was unthinkable only a few years ago, but they've made so many bad moves recently and bleed out so much capital you really have to wonder.

    Steven

  55. IIRC Slashdot is hosted at Exodus (aka C&W) by semanticgap · · Score: 1

    They used to be at DigitalNation, now known as NTT/Verio... Time to move again?

  56. Word to the newly unemployed by kyoko21 · · Score: 1

    For those of you who are at C&W, or have already left and looking for places to work, I'd suggest looking at the IT market in Hawaii. There is plenty of contract work with the military there and you can't be the great weather that they have. :-) If you have clearance, that's even better and they are ALWAYS looking for people with awesome skills. If you work in a data center, I'm sure NMCI (Navy Marine Corps Intranet) will be looking for good people... just a thought though. Hope this helps!

  57. just MAYBE by zogger · · Score: 1

    just MAYBE all this US infrastructure in the broadband area would become profitable if they would PLEASE just spend some more and FINISH the LAST MILE everywhere. There's a huge untapped market out there for broadband. And dig this! I just found out about an area around here that has NO internet being provided except for satellite, there's NO dialup even, let alone broadband. Knocked me socks off. Yes, small community, but hundreds of homes total. they got some dinky coop phone deal, but zero internet! akkk!and every place outside their little area is long distance. This is just rude. I was also visiting in a neighboring state, now this area is normal built up, thousands of people, real cities, etc, this pretty big area JUST last month got offered broadband from some provider, it's bottom of the barrel adsl service, 120$ for 40 hours a month!!!!!!!! I was talking to a big real estate guy there, he was relieved to just get it.

    Those are some-not all but certainly some- of the reasons they say we have a "glut" of big pipes/infrastructure and they aren't profitable, there's tens of thousands of square miles (or more, but it's in every state of the nation) and millions and millions of people all over who couldn't purchase the product even if they wanted to. The last mile ain't there. Seems lame as all get out to put all this other expensive stuff in, then not do the last %^^&%&^ mile. I am just amazed it continues, this is 2003, not 1995. I mean, once it's in, doesn't fiber or good cooper or coax cable last like decades or more? Or are all these companies just worried about this years profits, not seeing the really big picture here. Suppose they had done that with POTS, just skipped the last mile? Of course it would have never worked. This is the US, not some third world place, there's little reason to not have this stuff built, if they could get rid of some of the more stoopid local monopoly laws, and if INVESTORS were truly INVESTING for the long haul, and not acting like a big group of pure gambling something for nothing day traders.

  58. Someone alert Level3. by Deal-a-Neil · · Score: 1

    1-877-4LEVEL3. They'll gobble 'em up with all that Warren Buffet money. Soon, when there's a Level3 story, you can wrap a little Borg-icon like /. has on Gates.

    1. Re:Someone alert Level3. by Anonymous Coward · · Score: 0

      Nobody will buy them. If I already have excess capacity that nobody is using, why would I buy even MORE? I would be better off letting them die and collecting their customers to use my excess capacity than I would buying their customers AND their network capacity. The net result would be even worse than what I had to begin with. More customers but even more unused network capacity that must be maintained but brings in no revenue.

      Nope, nobody is going to buy them, they are going to either survive or die on their own. AFTER they are dead someone might pick up some of the pieces for pennies on the dollar.

  59. Its a shame... by Anonymous Coward · · Score: 0

    my former employer had their site hosted by Digital Island down on Staten Island, NY. Having moved from Exodus in Jersey City, I have to admit it was a very nice layout, they were very professional... we loved working with them.

    Unfortunately, it sounds like C&W has killed all that. Yet again, a large company snaps up some smaller fish and runs them into the ground. Hope all the guys from DI are doing well... you were great!

  60. Does this affect Canadian CW? by halightw · · Score: 1

    Our pipe goes through CW in Toronto, I wonder if this is included? (Looks like my route to slashdot is also on cw)
    Traceroute to slashdot.org....
    1,2 removed
    3. iar2-so-2-2-0.Toronto.cw.net
    4. bcr2-so-2-2-0.Toronto.cw.net
    5. dcr1-so-4-2-0.Chicago.cw.net
    6. dcr2-loopback.SantaClara.cw.net
    7. bhr1-pos-0-0.SantaClarasc8.cw.net
    8. csr1-ve240.SantaClarasc8.cw.net
    9. 66.35.212.174

  61. CNW migrations suck suck suck by teambpsi · · Score: 1

    That wasn't our experience, they just hit the switch on our LD...

    Their move to primus left us without inbound 800 service, and the people at Primus were less than helpful/clueful -- CNW totally dropped the ball,a nd Primus could not even find it to pick it up.

    We've been a CNW ISP client since last year, not migrated to newedge, and our rep is still pitching bandwidth as CNW today

    Bizarre to say the least

    --

    Old age and treachery almost always overcome youth and skill.
  62. Letter from C&W by Anonymous Coward · · Score: 3, Informative

    We got this letter from our account rep at C&W this morning.

    ---

    I'd like to take this opportunity to summarize Cable & Wireless' =
    announcements today. I look forward to discussing this with you in more =
    detail and please either call, or let me know a good time to reach you. =
    The recent speculation in the media may have been unnerving to you and =
    other customers, and we're excited to deliver our message today. I want =
    to assure you that our business is not going away, and there is no need =
    to seek an alternative provider for your services.

    The bottom line is that C&W PLC intends to withdraw from the US market. =
    CWUSA is a composite of three primary, and incredibly valuable assets =
    including Exodus, Digital Island, and the former MCI Internet Backbone. =
    CWUSA has made excellent progress against our November 13 =
    re-organization announcement, however, the internet centric business of =
    CWUSA does not fit with CW PLC's new strategic focus on national telecom =
    companies with strong positions in their primary markets.

    C&W PLC will continue to fully fund and support CWUSA until a buyer or =
    investor is found for the business. There are no new changes to US =
    headcount, or data center facilities, aside from reductions that were =
    outlined in our November 13 re-structure announcement. We, as well as =
    you (I'm sure) hope for this to be a swift transaction.

    Frankly, for myself, and my US colleagues, this presents an =
    extraordinary opportunity to grow a new brand on our strengths of the =
    combined legacy industry leaders, and continue to provide you, and all =
    our customers with exceptional service, and a range of product offerings =
    that is unparalleled in our business.

    ---

  63. C&W leaving the US market? by taustin · · Score: 1

    Clueless & Witless is giving up? Woo-hoo! Ding dong, the witch is dead!

  64. C&W: My first ISP by mrkurt · · Score: 1

    From the Infoworld story:
    C&W has been on the retreat in the U.S. since September 2002...

    Maybe longer than that. It so happens that C&W was my first ISP, known as CWIX. About four years ago, though, they decided to get out of the ISP business and my account got sold to Prodigy. CWIX was a decent ISP, whereas Prodigy blew. The strong may survive, but it doesn't mean they provide better service.

    --
    Always look on the briight side of life! (whistle, whistle)
  65. C&W can roast in hell, they're a huge spam hau by Indy1 · · Score: 0, Redundant

    Here's all the blocks from C&W i've gotten spam from. I've tried larting them with little success so i said fuck it and started plonking their net blocks into my firewall.

    # C & W spamming lamers
    iptables -A spam -s 204.71.191.0/24 -j DROP
    iptables -A spam -s 66.35.193.0/24 -j DROP
    iptables -A spam -s 216.109.64.0/19 -j DROP
    iptables -A spam -s 64.28.64.0/19 -j DROP
    iptables -A spam -s 64.253.192.0/20 -j DROP
    iptables -A spam -s 216.19.160.0/20 -j DROP
    iptables -A spam -s 216.144.64.0/20 -j DROP
    iptables -A spam -s 216.64.192.0/19 -j DROP
    iptables -A spam -s 64.70.18.0/24 -j DROP
    iptables -A spam -s 216.74.128.0/18 -j DROP
    iptables -A spam -s 64.37.192.0/18 -j DROP

    --
    Lawyers, MBA's, RIAA? A jedi fears not these things!
  66. no shit by abhisarda · · Score: 1

    I clicked on the "Whats New" on cw.net and then did a double take when I saw "New Jobs are Available".
    Then I noticed that the last time they updated that section was June 11 2000.

  67. That started this a while ago by joeblowme · · Score: 2, Informative

    The started bailing out a while ago. I got 22 days notice that they were turning my pipes off like 3 months ago. 22 days is about impossible to get a new pipe installed and running. Bigger problem was that Cable and Wireless didn't even give me the 22 days, they gave me 17 days before taking my pipe down. Thankfully the good people at Time Warner Telecom took care of me and got my lines up early and I was only down for like 4 hours. Needless to say we have lawsuits pending against cable and wireless for breach of contract.

    --

    If your not cheating your not trying. If your not trying your not winning and if your not winning why play?
  68. This could get ugly-Uptime crippled. by Anonymous Coward · · Score: 0

    "The beauty of the internet is its ability to adjust routes and optimize connections..."

    Problem is that the internet isn't as resilient as people assume. Yes I'm aware of what the "intent" was, but the reality for various reasons is different. Take out key points and 80% to 90% of the internet could be impaired from both direct cause, and cascade effects.

  69. I hear Primus doesn't have a great rep either... by Anonymous Coward · · Score: 0
  70. ion-ip by Abstract · · Score: 1

    In holland C&W used to own widexs hosting. They sold it to ion-ip hosting company. ion-ip is running most / or all of c & w hosting services.

  71. OT: More Slashcode weirdness by Tackhead · · Score: 1
    > Yup, and I can see the red bar as well. Not a subscriber, either. "Problems with this story?" guff appearing as well.

    And what the hell is with that colossal font size=4 stuff in the sans-serif font in the article titles? Looks like ass, guys.

  72. old news by Anonymous Coward · · Score: 0

    I have several friends who work there (well, more accurately some that still do but most have been canned in the past 18 months). It's been known that they were shutting things down in the US the screwing up the ass *without lube* all of the US companies that they bought (digital island? exodus? hello!)

  73. Alabanza sucks ass. by MsGeek · · Score: 1

    Lousy service, crappy connectivity...they were my host's facilities (they wisely moved) and they were constantly having problems. If they are one of the leaders, I really haven't got much hope for the sector.

    --
    Knowledge is power. Knowledge shared is power multiplied.
    1. Re:Alabanza sucks ass. by paitre · · Score: 1

      Who was your provider? There were several who seemed to have had those sorts of complaints, even though the -vast- majority of their clients seem to be quite happy with them.
      *shrugs*
      I really don't care as I haven't worked there for 6 months.

  74. Phaeton Sez by Anonymous Coward · · Score: 1, Interesting

    I work for a small ISP, and actually around December C&W sent us a letter that basically said:

    "btw, we're pulling out of X% of our US markets. Your pipes will be shut off in 30 days. Yes we know that we've got a 7 year contract agreement, but well, too bad. have a nice day".

    This resulted in legal action on our part and a lot of frantic searching for other providers. It all shook out ok in the end, but it there was a lot of sleepless nights for some time.

  75. CWUSA Not pulling out by ianster · · Score: 1

    I just got an email from my account manager at C&W here in the US. He says C&W USA is not pulling out, so probably wont effect too many people. At least my T1 won't be going anywhere :)

    "Our parent company is exiting the US...C&W PLC. Cable & Wireless America
    (CWA) is still here and operating."

    1. Re:CWUSA Not pulling out by Anonymous Coward · · Score: 0

      Um... Ok? Who owns and operates CWA? CW PLC you say. And what do you think their "pulling out of the US" means then? Hate to tell you this, but your sales rep wants his commision check. He'll be moving on in a couple of months and you'll be fsck'd. He doesn't give a flying f*#& about you or your business. But then again, you knew that didn't you ;-)

  76. Re:Bah! Too Much for Consumers to Remember by autocracy · · Score: 1

    The United States of America. Elections are suspended do to terrorists. Have a nice day.

    --
    SIG: HUP
  77. More like.. by ZxCv · · Score: 1

    I think this "breaking news" on slashdot is a sham, the only advantage is you get to put in your own two cents first.

    It's more so that you get to check out the articles/sites in the post before most others (read: you aren't affected by the /. effect). Discussion on the post can't start until the story is available to all (unless I'm missing something).

    --

    Perl - $Just @when->$you ${thought} s/yn/tax/ &couldn\'t %get $worse;
  78. Legally... by ZxCv · · Score: 1

    ... and weeks of nasty phone calls, we were still able to walk into the data center where we were co-located and pick up about 10K worth of hardware.

    Legally, they were required to let you come in there and remove your equipment. They cannot hold your equipment without authorization (criminal) because of a billing dispute (civil). A former client of mine was threatened in this manner once, and he simply said he would be down at the data center with the sheriffs deputies within a few hours. When he got there, the employes were more cordial than usual about letting him in there to get his stuff.

    --

    Perl - $Just @when->$you ${thought} s/yn/tax/ &couldn\'t %get $worse;
  79. Nice going, Ellen! by Anonymous Coward · · Score: 1, Informative

    Ahhh, another company damaged by Ellen Hancock.


    and now,
    • Cable and Wireless, another batch of poor sots that bought parts of Exodus

    So, what other companies and organizations are on the watch-list?


    Disclaimer: Well, duh ... of course I am a disgruntled ex-employee of Ms. Hancock back when she was a IBMer. I just did not realize how bad she really was ... even if none of this was her fault, she has still been at the epicenter of many closed office buildings over the years.

  80. UUnet/WorldCom/MCI to the rescue.....again. by Anonymous Coward · · Score: 0

    They saved alot of former Exodus customers a couple years back, then Global Crossing customers (like me) found salvation. Even though they've been through financial difficulties of their own over the last year and a bit, I haven't heard a single story of any UUnet/WCom/MCI customers seeing a degradation in service because of it. They seem like a logical alternative if C&W customers start running....

  81. this would be true if... by Artifex · · Score: 2, Interesting
    There is still excessive capacity in this space and because of this nobody can charge enough to cover operating costs. You will see this change when the capacity is eliminated and all the smaller players are starved out. When this happens watch out the cost of hosting services will go through the roof and the small number of companies left standing should do well.


    The problem with this idea is that there is no significant barrier to entry in the low-end colo or hosting market, other than running fiber to a facility. As soon as the rates for hosting go up, a lot of people will look for cheaper ones, and you'll see another crop of low-end companies start up.

    Don't forget that even that barrier is significantly reduced by the fact that the capacity is always there on most of that dark fiber, so they have an incentive to sell it, as long as they haven't pulled it out of the ground and turned off the power to it. Not to mention that Verio and other former players in the big data center market will still be looking to get out from under some of the leases for their closed facilities, for at least the next couple of years. Even if they default on their leases, the building owners will be much happier leasing you the facility as is instead of having to rip out all the heavy infrastructure modding. :) Especially since the real estate market in a lot of the places where data centers went in didn't exactly improve...

    Hosting's going to be a commodity market for a long time, if not from now on, I think.
    --
    Get off my launchpad!
  82. Re:C&W can roast in hell, they're a huge spam by Anonymous Coward · · Score: 0

    DIE!!! DIE!!! DIE!!!
    bettersex.com
    customoffers.com
    offersdep ot.net

    All opt-out spammers hosted by C&W.

  83. Re:C&W can roast in hell, they're a huge spam by Anonymous Coward · · Score: 0

    Then too, it could be because I subscribed all their contact info to the opt-out spammers that they are hosting...

  84. Funny story tangentially involving C&W by Max+Threshold · · Score: 1

    I was once a residential cable internet customer of a company called Smyrna Cable. While I was their customer, they were bought out by Charter Communications. My last few bills had the Charter logo on them. However, my personal web page and email address remained under the smyrnacable.net domain. I cancelled my account when I moved out of their service area almost a year ago.

    I've been checking my old email address periodically just in case someone tries to contact me there. A couple weeks ago I finally tired of this and asked Charter to kindly close my inbox and remove my Web site (for which I've long forgotten the FTP password.) But their tech support department has no information about those servers and denies any association with Smyrna Cable.

    I checked WHOIS, and the IP addresses of the Web and mail server are actually registered to Cable & Wireless. But C&W also denies any knowledge of their existance. Strangely, Charter's nameservers are still listed as authoritative for the domain.

    It makes me think the entire industry hasn't got a clue. A company grows to a certain size and the proverbial left hand no longer knows what the right is up to.

  85. So, basically what this means then, is by Anonymous Coward · · Score: 0

    From a home consumer's point of view; we're hopelessly screwed.

    Time to see if I can figure out what the hell I used to do [b]before[/b] the "rise of the internet", I guess.