Return to Main News Page

Redundant Seeking Buyers

Carrier Hotels Staff Posted Feb 5, 2004

Print This Story

Business continuity provider Redundant Networks has laid off much of its staff and is seeking to sell its two data centers, citing the enterprise IT budget crunch.

"Last week we took some steps to cut back our operations considerably," said Redundant COO and general manager Janice Fetzer. "We're trying to get down to bare bones to maintain operations for our customers, and we're talking to some acquisition prospects."

"We're not looking for a company acquisition anymore," said Fetzer. "We're looking for acquirers who would be interested in a site acquisition."

The company has a 13,000 square foot data center in its home base of Reno, Nevada, and last year acquired a 15,000 square foot data center in Raleigh, N.C. previously operated by Relera.

Launched in December 2001, Redundant targeted the enterprise market with disaster recovery and high-availability colo services designed to meet regulatory standards including HIPAA and Gramm-Leach-Bliley. The company targeted high-tech communities outside major cities.

"We went after a quality product scenario," said Fetzer, who brought experience from Exodus, where she was VP of real estate and construction. "We became a quality plug and play solution. But these services are kind of a discretionary spending item right now, and discretionary spending in this economy is not at the top of everyone's list."

Fetzer notes that while the economy and industry conditions are both improving, "we don't see it improving enough in the next two to three quarters that it would have changed our operational picture."

She said prospects have been impressed with the company and its services, but are being deliberate in their decisions and investment. "The pipelines we had were just awesome, and that can continue on with a new owner," said Fetzer. "We've got great customers. It's just an ownership transition."