Closing of Web hosting firm Exodus not a total loss, users and analysts say

Computerworld - The pending sale of the assets of Exodus Communications Inc. in bankruptcy court isn't likely to be a disaster for the Web hosting company's customers, users and analysts said.

First, many customers with mission-critical needs already use more than one Web hosting company, to provide redundancy. Second, Cable & Wireless PLC, the company buying Exodus' assets, is letting customers and analysts breathe more easily because it's an established company that's expected to seamlessly take over Web hosting for Exodus customers without any gaps in service.

For Neoforma Inc., which builds online health care supply marketplaces for customers, the bankruptcy and pending demise of Exodus is a minor inconvenience.

Though Exodus' hosting services are critical to the San Jose-based company's business, Neoforma already uses a second hosting company for redundancy, so a natural disaster or even a bankruptcy can't shutter its customers' sites for any length of time.

"It insulates you from exactly the kind of situation that Exodus is in," said Steve Wigginton, the company's executive vice president of marketing, operations and development.

Under the ongoing bankruptcy, which is set to be finalized next month, 30 of Exodus' 44 hosting data centers will be sold to London-based C&W for about $575 million in cash (see story). C&W hopes to keep most of Exodus' approximately 3,500 Web hosting customers as it takes over the operations and expands into the market. Santa Clara, Calif.-based Exodus is one of the world's largest Web hosting companies.

But assuming the sale of the data centers to C&W is approved by the bankruptcy court, the Web sites of Exodus' customers apparently won't miss a click. Exodus will pay to migrate any customers whose Web hosting facilities are in the 14 data centers not being bought by C&W, according to a spokeswoman.

For at least one Exodus customer, those assurances weren't enough.

Dan Agronow, vice president of technology at Weather.com, the Web site of Atlanta-based The Weather Channel Enterprises Inc., said Exodus' bankruptcy filing was only one of several factors in his company's decision to switch to WorldCom Inc. for its hosting just last week.

While satisfied with Exodus' service, he said Weather.com had "concerns related to the ongoing Exodus support and financial stability," in addition to being able to save money by going with WorldCom. "Since we had those concerns, we started looking around," Agronow said. The final decision to switch was made before the Exodus bankruptcy was announced, he said.

Ironically, Weather.com used C&W as a hosting firm before switching to Exodus in late 1999,