Interland Consolidates

Interland has been one of the major consolidators in the shared hosting/dedicated server space, scarfing up eight smaller providers since mid-2001. As it integrates the assets acquired in that buying binge, Interland is closing four data centers, the company said this week.

The locations targeted for closure include facilities in Kansas City, Seattle, Mesa (Ariz.) and Ft. Lauderdale, Fla. Interland estimates that it will generate EBITDA savings of $4.5 million, with one-time consolidation costs of $2.3 million, according to a press release outlining the closures.

The Kansas City closure has attracted the most attention, as it effectively shutters CommuniTech.NET, which had been Kansas City's largest local hosting company when its owners sold to Interland in February 2001. CommuniTech had won several local small business awards, and the closure of its former data center has played out as a David Vs. Goliath story.

CommuniTech co-founder Gabriel Murphy told the KC BiZ Journal that he now believes selling to Interland was a mistake. “I wish we would have done things differently and not gotten involved with Interland,” Murphy said.