May 1, 2002 -- Managed hosting provider Inflow Inc. said today it will close two data centers, sell two others and cut staff in a plan to become cash-flow positive in the current quarter.
The Denver-based company, which operates a chain of 18 data centers, also said it will consolidate its off-hour customer support functions in two network operation centers in Denver and Austin.
Inflow will close data centers in Sacramento and Irvine, Calif., and offer customers in those locations the chance to migrate their operations to other Inflow sites. The company also said it is in negotiations to sell its data centers in Dallas and Dublin, Ireland to local companies.
Inflow said the moves would allow it to achieve EBITDA (Earnings Before Interest and Taxes Depreciation Adjusted) positive operations in the current quarter.
"Today's challenging economic environment requires constant monitoring of business operations and necessary adjustments," said Art Zeile, Inflow's chief executive officer. "Today's actions will enable Inflow to become the first complex hosting company to reach EBITDA positive status and will ensure our company will be a survivor in the marketplace."
As part of its restructuring, Inflow will lay off an unspecified number of employees, including some workers at its corporate headquarters in Denver and some field support staff.
The move to centralize off-hour support functions is "a natural evolution of our business model and reflects an enhanced means of customer service," said Joel Daly, COO for Inflow.
"Very few customer service inquiries occur during off-hours," said Daly. "Centralizing our 24/7 customer support is a smart business decision for Inflow without affecting the quality of customer service we provide through our Service Level Agreements and local staff."
Inflow operates 18 data centers in 15 states, including three in Denver, and one each in Atlanta, Austin, Dallas, Irvine, Minneapolis, Nashville, Phoenix, Pittsburgh, Philadelphia, Portland, Raleigh/Durham, Sacramento, San Diego and St. Louis.