Dec. 6, 2002 -- Qwest Communications said this week that it will consolidate its web hosting operations from 16 to eight CyberCenters, and will likely repurpose or sell the remaining facilities.
The announcement raises the prospect of additional finished data center space coming on the market, adding to inventory from Cable & Wireless, WorldCom, and a number of other providers.
Qwest says it intends to migrate customers into eight CyberCenters that will remain open, which are located in Chicago, Denver, Newark, Tampa, Sterling, Va. and California sites in Burbank, Sacramento and Sunnyvale. The company said these sites are "expected to provide Qwest with a strong and profitable revenue stream in the future."
The facilities being consolidated includes sites in Atlanta, Dallas, Seattle, Miami, Philadelphia, Weehawken, NJ, Columbus, Ohio and a second center in Sterling, Va. Qwest's CyberCenters average about 50,000 square feet per facility.
"This new strategy will allow us to continue to provide services without compromising the company’s business objectives,” said Tom Schill, general manager of Qwest Hosting. “This plan makes good business sense because it focuses on profitability and customer service, and it enables Qwest to take advantage of the vast market opportunity that lies ahead.”
"We're working with all of our customers to ensure a smooth transition, and ensure that our services will be continuous throughout the process," said Qwest's Claire Maledon. "That's what we're focused on right now."
Maledon said Qwest is evaluating the future of the centers being consolidated, noting that Qwest may retain some leases to use the space for other business purposes. Other sites may be sold, she said.
Qwest will continue to provide round-the-clock monitoring of all its hosting facilities from its Denver-based "CyberCentral" data center.
Qwest at one time planned to build as many as 42 CyberCenters, funded partly by a $5 billion strategic alliance with IBM.