C&W customers take pullout in stride, eye options

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June 05, 2003 (Computerworld) -- After London-based Cable & Wireless PLC announced yesterday that it's abandoning the U.S. Web hosting and services market (see story), a sampling of C&W users calmly said they will wait to see whether another company steps in and keep their options open about jumping ship to another provider.
Users said a large overcapacity in the troubled hosting business means they expect few problems finding a business willing to sign them up -- even if it means they have to find a new vendor in the future.
Russell Kuteman, vice president of finance at amusement park company Six Flags Inc., which buys content delivery and Web hosting services from C&W, said it's still early to determine whether someone will buy out C&W or whether Six Flags has to go elsewhere. The problem, though, is knowing how long Oklahoma City-based Six Flags should wait before making a move, he said.
"Companies like us and others that have commerce across their Web sites can't afford to be in a risky situation as far as services go," Kuteman said. "We're going to keep a finger on the pulse [of the situation], and the minute our comfort level moves in the negative direction, we'll be gone."
Kuteman said he expects another hosting provider to step in at some point to take over C&W's hosting customers in the U.S. "We enjoy the relationship we have with their people ... and they do what they say they will," he said. "We're really keeping our fingers crossed here."
John Godwin, chief technology officer of online movie download service Movielink LLC in Santa Monica, Calif., said C&W's announcement yesterday of a sweeping restructuring and a complete exodus from its money-losing North American business wasn't a surprise. "I think a number of companies have been in trouble in this economy," Godwin said. "We think they'll handle this very responsibly" by either finding a qualified buyer or giving clients enough notice to make new arrangements. "We just don't think it will have an impact."
Many C&W customers went through this same predicament just 18 months ago when C&W came to the rescue and took over the U.S. business for bankrupt Web hosting business Exodus Communications Inc. (see story). Now C&W is leaving and will try to find a buyer or other undisclosed options for its customers.
Rick Thimble, IT manager for the U.S. and Europe at plastic parts maker Moldflow Corp. in Wayland, Mass., said he's not worried -- even after going through the same thing with Exodus in November 2001.

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