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Old 08-13-2002, 04:35 AM   Postid: 72288
Velimir
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should we be concerned: Qwest may close up to 12 data centers

Qwest Communications International may close up to 12 of its data centers, according to a Denver Post article.

The article said the carrier could close up to 12 of its 17 data centers, called CyberCenters, and keep five running. Robert Notebaert brought up the possibility of closing some centers during an employee meeting last Thursday, the article said.

A Qwest spokeswoman told CRN that the carrier has not said it intends to close any CyberCenters, but it may decide to sell some of the facilities.

"There are no final plans in place. Qwest's main priority is serving its customers, so if we decide to make a change to our hosting assets, we will not jeopardize customer service, " she said.

The application and Web hosting space, in which Qwest was involved through its ASP division, called CyberSolutions, and still is via its CyberCenters, has weakened considerably since the heyday that saw major buildouts in 1999 and 2000.

Qwest signed a deal in 2000 with IBM Global Services to co-develop 28 CyberCenters. The centers were expected to create $5 billion in services revenue split equally between the two companies over the next seven years.

Qwest planned to build and run the centers and act as the network provider, while IBM was expected to provide operational support and use the centers to house its e-commerce clients.

CyberSolutions, the application hosting unit, spun out of the CyberCenter effort with Qwest and KPMG backing the endeavor. KPMG eventually pulled out of the joint venture, leaving Qwest the sole owner.

Earlier this month, Qwest exited that business with the sale of CyberSolutions to ASP Corio for an undisclosed amount. CyberSolutions had been folded back into Qwest in February of this year.
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Old 08-13-2002, 05:45 AM   Postid: 72293
 Deb
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Quote:
should we be concerned: Qwest may close up to 12 data centers
I've seen a number of data centers disappear into thin air, one of which was too close for comfort. This is a huge reason why FutureQuest has its own Data Center. The risk of some other provider closing down has become far too great! We are fortunate to have already proven to ourselves, the Site Owners, and our competitors, that we were able to handle the situation gracefully when it happened to us and to not be in the position for it to happen again!

The data center that FutureQuest was previously collocated within was one of the many that has already closed its doors. We were given less than a 7-day warning that the data center we resided in would be shut down. We turned that devastating news into an opportunity to further expand

Should we be concerned? Sure! We are all very concerned about the current problems that are popping up everywhere in the IT industry, though not surprised... Note however that FutureQuest has traveled an Internet business path of its own choosing. We refused venture capital and built this business with no outside investment and a no-debt policy. This unconventional strategy is what has allowed us to continue growing in a time of "dot-COM and dot-NET busts".

There have been many times along the way that some VC would have been very nice to have! I'm just glad we decided to work around it. I shudder at the thought of what FutureQuest would have become with the VCs making all of the rules. I was told years ago that FutureQuest wouldn't survive without funding, by a company that is now bankrupt. I'm seeing more and more companies just like that one screaming bankruptcy every time I view the news. Here's to old-fashion business sense!

Qwest also begged us to collocate within one of their Florida Facilities rather than 'wasting our money' on building our own Data Center. Gee Wiz... I'm happy we didn't listen to that advise either

FutureQuest is watching the Qwest (among others) situation closely and is prepared to continue business regardless whether or not Qwest pulls through with amazing success, or goes belly-up before the end of the year. It may be a bumpy ride but we've got lots of pillows in the back room

Also remember that FutureQuest is a client worth purchasing. As the Qwest spokeswomen stated below...
Quote:
A Qwest spokeswoman told CRN that the carrier has not said it intends to close any CyberCenters, but it may decide to sell some of the facilities.
There are quite a few hosts running on Cogent lines (for example...please don't silently flame me for this lol). Cogent has bottomed out their prices so drastically that if they tried to sell their clients, there would be few, if any, other providers who would want to purchase them. No profit.

Qwest on the other hand provides a premium service at a premium price. If they decided to sell off their client base, there are plenty of other providers who would be happy to make the purchase. I'd rather the names of our providers be changed than for our providers to just pull the plug.

To top it off, FutureQuest already has dates scheduled for additional lines to be brought in as we further expand and strengthen our network. (To be discussed later....)

In short: We should all be concerned about this industry as a whole and keeping our eyes open. For years many of us have been predicting a shake down and now it's here. Those that have worked hard to be prepared will remain standing and those that haven't are going to fall.

FutureQuest is often called an "expensive host" yet our ability to continue servicing a solid and growing client base, survive severe trauma, and post today with confidence explains why Site Owners continue to choose us. (Woah! Did that sound like a marketing ploy?) What I meant was... "Your in good hands with FutureQuest" (..and that's probably a trademarked slogon)... How about, "Fasten your seat belts, and enjoy the ride!"

Deb
- Tomorrow's almost here... catch it if you can!

Last edited by Deb : 08-13-2002 at 05:57 AM.
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Old 08-13-2002, 06:06 AM   Postid: 72294
Velimir
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i need to change the subject :)

we shouldn't be concerned... we are at FUTUREQUEST
and enjoying the ride
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