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C&W Bails Out

Posted by michael on from the last-one-out-turn-off-the-lights dept.

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."

6 of 220 comments (clear)

  1. 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 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
      / \
  2. 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.

  3. 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
  4. 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
  5. 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.