SAN ANTONIO--(BUSINESS WIRE)--Nov. 17, 2003-- The following is a commentary provided by Rackspace Managed Hosting.
Although IDC reports that the U.S. Web hosting market could reach $5.4 billion in 2003, the market is still witnessing dramatic shifts. The acquisition of Digex Inc., a provider of enterprise hosting services, by telecommunications carrier MCI (formerly Worldcom), is yet another example of the significant consolidation, contraction and closings the market has experienced in the last four years. Major telecommunications players like Sprint, Cable & Wireless and Bell South have spent hundreds of millions on their hosting divisions; yet, have exited the market because they were not profitable. Will Digex suffer the same fate after acquisition by MCI?
For a view on what this acquisition means for the industry, executives from Rackspace Managed Hosting, a $67 million company and one of the fastest growing players in this space, are available to discuss the following:
-- Are telecommunications companies well positioned for the Web hosting market, or not? Can they support the high-intensity service model required by managed hosting customers?
-- What are the obstacles and advantages telcos face in this market? And how are they positioned against the pure play managed hosting companies?
-- With the hundreds of millions of dollars spent to date, why have so many telcos retreated from this market? How will the new MCI/Digex strategy play?
-- What are the pros and cons for customers hosted with telcos?
RESOURCE:
Graham Weston, CEO of Rackspace Managed Hosting, is responsible for overall corporate strategy and direction, business development, and M&A activity. As one of the initial investors in the company, Weston has been tracking the Web hosting market since its early beginnings in the late 1990s.
