ASPnews Home

News

Analysis

Trends

Strategies

ASP Directory

Community

About Us

Search ASPnews:



internet.com
Developer
Downloads
International
Internet Lists
Internet News
Internet Resources
IT
Linux/Open Source
Personal Technology
Small Business
Windows Technology
xSP Resources
Search internet.com
Advertise
Corporate Info
Newsletters
Tech Jobs
E-mail Offers
internet.commerce
Be a Commerce Partner
Cheap Plane Tickets
Digital Camera Review
Register Domain Name
Memory Flash Cards
Online Education
Batteries
T-Shirts
Remote Access
Advertising Trucks
Online Degrees
Best Digital Camera
Cheap Web Hosting
Digital Camera Review



ASPnews Focus
Top News:
» SOAs So Close, Yet So Far

» Why SaaS Is Making a Comeback

» Join the Discussion: ASPnews.com's industry forums

Plus:
» More ASP News

TOP 50
Top 20 Providers
 & Top 30 Enablers
Free Newsletter!



ASPnews Shortcuts
Week's Top News

ASP News at internetnews.com

Industry Events

Discussion Forums

Industry Basics

Site Guide

Webcast: Symantec LiveStateā„¢ Recovery–Addressing Today’s Recovery Issues. Learn how to easily meet your recovery time objectives by performing a full system restoration, a complete bare metal recovery or restoring individual files and folders in minutes.

NEWS
Week’s Top News | Alliances | Business/Finance
Product Launches | Trends


AT&T; Sells Off Small Biz Hosting Accounts

January 25, 2002

By Erin Joyce

Small business Web hosting company Interland, Inc. (Quote, Chart), is buying customer agreements and other assets from AT&T;’s small business Web hosting divisions as the phone giant sharpens its focus on large-scale customers.

The Atlanta-based Interland said it acquired the small-business and dedicated Web hosting assets from AT&T; (Quote, Chart), a deal that also includes some intellectual property.

The value of the transaction ranges from $4 million to $12 million, depending on how many of the small business accounts transition over to the Interland, the companies said.

AT&T; said the sale in no way diminishes its commitment to serving small business customers in its other market segments. A company spokesperson called the sale part of AT&T;’s strategic focus of delivering managed hosting services to medium and large business clients.

This week AT&T; took the wraps off an expanded range of managed hosting services for major enterprise customers and large businesses around the globe. The network expansion includes enhanced VPN services, security services, managed wide-area networks and content distribution.

Most of the small business accounts it sold to Interland were said to be in the range of $25 a month to just under $800 a month.

The purchase is part of Interland’s plan to use its $170 million cash hoard to grow via account acquisitions. Among its account base of over 300,000, Interland services small businesses with as few as 100 people. The only way to hit cash flow breakeven, which it predicts will happen this year, is to build more scale into its operations.

As one of a handful of Web hosting providers surviving the shakeout that hit the crowded sector after financing dried up, Interland has plenty of choices on asset sales. But it appears to be playing it safe as well, such as a recent decision to call off the purchase of two Web hosting subsidiaries from bankrupt provider e.spire Communications on concerns over debt liabilities.

AT&T; said the sale represents less than 2 percent of the total base of small business customers it services.

Go to page: 1  2  Next  

Email this Article
View Printable Version
Back to News

 

Featured Links
Learn the secrets of the popular search engines!
Free Web Hosting Buyer's Guide -- Click Here!
Enhance your Web site with the Dynamic HTML HierMenus Code


JupiterWeb networks:

internet.comearthweb.comDevx.comGraphics.com

Search JupiterWeb:

Jupitermedia Corporation has three divisions:
Jupiterimages, JupiterWeb and JupiterResearch

Copyright 2005 Jupitermedia Corporation All Rights Reserved.
Legal Notices, Licensing, Reprints, & Permissions, Privacy Policy.

Jupitermedia Corporate Info | Newsletters | Tech Jobs | Shopping | E-mail Offers


Give us your Feedback