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Rich Miller's Wired Space Weblog

June 09, 2003

Customers Up For Grabs

With Cable & Wireless planning to exit the US hosting market, several competitors have stepped up their customer acquisition efforts, hoping to attract C&W customers who may be tired of uncertainty. In the last two business days, Navisite, Cogent and Digex have all rolled out "migration packages" offering incentives for new customers.

The scramble for displaced customers intensified with the apparent collapse of New Jersey hosting firm Datapeer, which may have had as much as 42,500 square feet of data center space and 600 servers, according to media reports. This prompted CIHost to immediately purchase Google text ads that pop up on keyword searches for "Datapeer," offering three months free and "instant setups."

While Datapeer customers have no choice but to seek out new quarters, C&W customers may wait and gauge the interest from potential buyers before deciding whether to seek another provider. If one emerges, it'll be the third owner for most of these data centers.

But then again, my two local banks have changed hands four times apiece since I opened my accounts. The changeover is never as smooth as advertised, but it's often less work than switching accounts to another bank - which would probably be bought next week, anyway. Advanced data hosting and banking are different businesses, but amid the churn and sign-changing, the customer psychology may not be much different at this point.

Most of C&W's customers know their options, which will only get better as competitors keep raising the ante on the number of free months they'll extend to new clients. A key decision point is whether suitors for C&W's American business have any use for the data centers themselves, or just want the customers.

Posted by RichM at June 9, 2003 02:37 PM
Comments

Hi Rich,

We at AboveNet have a great offer for C&W's customers as well. "Move to a Better Place" http://www.mfn.com/promos/index.shtm.
Great article as always, look forward to more.
All the best,
Gearld Hunt
National Account Manager
AboveNet, Inc.
(212) 803-5096

Posted by: Gerald Hunt at June 10, 2003 09:41 AM

Hi Rich,

I would like to offer up our Datacenter services and connectivity to Latam and Europe. Great article.

Thanks

Steve Lewis
Telefonica Data USA
305-925-5539
305-302-0654

Posted by: Steven Lewis at June 11, 2003 05:11 PM

For C&W and Sprint refugees who require the strength and STABILITY of AT&T - the world's largest telecommunications provider - managed and colo'd services are to be found throughout the U.S. It should be time to stop getting bumped from one distressed provider to another! Sheesh!

Brian Grushcow
National Hosting Specialist/Relocation Pain Solver
AT&T
323.265.6902
grushcow@att.com

Posted by: Brian Grushcow at June 11, 2003 05:17 PM

Those customers in the Dallas/Ft.Worth area being relocated from C & W and Sprint should look into the reliability and service of Aspen Communications. Carrier neutral with access to 35+ carriers.

214-231-3334
kam@aspen.mw

Posted by: Kam at June 11, 2003 07:35 PM

Rich,

Peer 1 can install new customers in any of our datacentres in NYC, San Jose, Seattle, Vancouver, Montreal or Toronto within 48 hours and will waive installation and first month colo for any customer migrating from Sprint, Datapeer or C&W. We offer the best customer service in the industry. Ask any of our 450+ customers.

Geoff

Posted by: Geoff at June 12, 2003 09:36 AM

Collocation Solutions in Dallas, Austin and Las Vegas is the only answer for the customers left in the dark with Sprint, Datapeer and C&W. Our financials speak for themselves, we are cash flow positive and have been for quite some time. Check out the latest press releases at http://www.collocationsolutions.com/company/news.htm
Great article, keep it up Rich!
Jayne

Posted by: Jayne Rios at June 18, 2003 09:32 AM

With all the uncertainty in the hosting/colocation market, there is only one place to go...LEVEL (3) COMMUNICATIONS.

Level 3 has the biggest colocation footprint in North America. Has financial stability (over $1.3b in cash) and a continuously upgradable network.

We don't abandon our customers. Once you're with LEVEL (3), you won't look back.

Bill Minkle
VP, Real Estate Strategy
Level (3) Communications
(775)831-6500

Posted by: Bill Minkle at June 18, 2003 12:51 PM