July 31, 2001
Gartner Writes Exodus' Epitaph
Lots of analysts have wondered whether Exodus will survive. But Gartner Group analyst Ted Chamberlin ratcheted up the Exodus death watch last night, posting an article on the widely-read C/Net web site advising the hosting company's customers to bail out.
"Gartner believes that Exodus' ability to pull out of its slide without outside help is doubtful," Chamberlin wrote. "Gartner has not yet seen any 'exodus' of businesses away from the Web-hosting market leader. However, the company's uncertain survival should spur businesses to prepare for life after Exodus."
Chamberlin then offers a checklist of Gartner's recommendations, urging them to "examine contracts for exit clauses," develop a transition strategy and solicit services from other providers.
Talk about kicking someone when they're down! Sure, doubts are growing about Exodus' future. But it's one thing to express concern about a company's churn and burn rates, and another thing to recommend that customers switch providers.
I have no doubt that many of Exodus' largest customers are already considering their options in worst-case scenarios. They don't need the Gartner Group to tell them they should do this. Nonetheless, Chamberlin's recommendations could prove damaging. With new business dwindling, Exodus' best chance for survival is to find ways to hold onto its exisiting business.
Is Gartner's advice simply grandstanding by a publicity-hungry research firm? Or is Gartner providing a genuine service for Exodus customers? Tell us what you think.
Posted by RichM at July 31, 2001 10:11 AMAll of Exodus' customers will be well served by exploring other hosting providers. Conxion Corporation provides managed hosting and modified managed hosting where customers move their hardware to a Conxion data center where Conxion provides management and monitoring. We have a long history of growth and profitability and a sustainable business model.
Posted by: Andrew Boe at July 31, 2001 04:54 PMI personally do not see how Exodus can stay afloat. They have a tremendous debt, customers are fleeing, and the clients who are staying are re-negotiating their contracts. I am looking elsewhere. I feel I owe it to my company to do what's in the best interest of our shareholders. If our web presence were to go down, we would loose customer traffic and confidence, receive extreme pressure from wall street on our stock, and loose revenue. It is critical that our site be functional at all times. I just heard of a fairly new managed service provider called KeyBridge. They have strong leadership, a compelling service offering, competitive pricing, and are backed by GlobalSwitch, the largest international data center/managed service provider. They have not given me a reason not to partner with them. I may not make the move right away, but if Exodus does not execute, I've got a plan B already figured out.
Posted by: Jason Collins at August 1, 2001 12:23 AMAs mentioned in the other comments, our company agrees. Our company had active equipment stolen out of Exodus in the past and as we searched for a remedy we needed to get our site back up ASAP. We secured an alternative provider of carrier grade colocation and managed services in RI and we have personally experienced great savings and service from our partners at Hosttech Communications. The knowledge base of these guys is quite impressive considering that they are a private, mid-sized data center that is in the black financially. I would reccomend that if you are looking for an exit strategy from Exodus or a new service to check them out.
Posted by: David Riker at August 2, 2001 08:42 AMClearly, based on the responses to my original post, Exodus has an additional challenge - competing hosting companies are working hard to lure away Exodus customers who have doubts about the future. Anyone from Exodus (or their customers) want to jump in with comments/thoughts on how the company is communicating with concerned existing customers?
Posted by: Rich Miller at August 2, 2001 09:38 AMIt's unfortunate news to the Managed Service Provider (MSP) market when it's largest player, Exodus, suffers. Who can say what will become of Exodus, or many others like them with so much of their business based on supporting the "dot com" era. It's equally unfortunate to those companies that chose Exodus as their hosting facility because they now face having to draft contigency plans in order to assure that their site and all its technology does not suffer from Exodus' tailspin.
Verado is well positioned to assist in the possible transition period that many of Exodus' customers may face. Whether you are definately leaving Exodus or you simply wish to have that "Plan B" in place, I urge you all to at least do some footwork to assure your services do not suffer. Verado is here to help you through this maze, quickly, easily and cost-effectively. Please visit our web site for additional information, or feel free to contact me directly. And best of luck to Exodus in the days, weeks and months ahead. For the MSP market's sake, I truly hope you make it.
Posted by: Kevin Reid at August 2, 2001 11:40 AMExodus indeed has fallen on hard times, as has almost any business that is IT-related. However, there are attractive alternatives to Exodus and other tier-1 managed hosting centers. Relera offers a full slate of managed services in highly-redundant and highly-secure data centers around the country. Please see our Web site for more information.
Posted by: Steve Weaver at August 2, 2001 07:29 PMThis all sounds like a big sales pitch for wannabee exodus companies!
Posted by: A Concerned Party at August 8, 2001 11:50 PM