Nov 13, 2002 : C&W to Exit 12 American Data Centers
📅 - Communications company Cable & Wireless reportedly plans to shed 19 of its 42 data centers worldwide, including 12 in the US, as part of its efforts to restructure its global unit.
The restructuring will eliminate 3,500 jobs in the unit, which includes Exodus and Digital Island. The company will limit its US business operations to focus on multinational enterprise and service providers.
Cable & Wireless did not announce which data centers it would divest, but plans to withdraw in phases over a 12 month period. The company said that in the future, its us network would likely be concentrated in major markets where multinationals are most likely to operate.
C&W shares lost a third of their value in London after the announcement was made, with investors there expressing dissatisfaction over the scope and cost of restructuring.
The company will reduce its US data center network from 27 centers to 15, and the cities it serves from 41 to 11. Though the company considered an exit from the US market altogether, it decided ultimately that such a move would impede the company's ability to serve British companies with US operations.
The restructuring will eliminate 3,500 jobs in the unit, which includes Exodus and Digital Island. The company will limit its US business operations to focus on multinational enterprise and service providers.
Cable & Wireless did not announce which data centers it would divest, but plans to withdraw in phases over a 12 month period. The company said that in the future, its us network would likely be concentrated in major markets where multinationals are most likely to operate.
C&W shares lost a third of their value in London after the announcement was made, with investors there expressing dissatisfaction over the scope and cost of restructuring.
The company will reduce its US data center network from 27 centers to 15, and the cities it serves from 41 to 11. Though the company considered an exit from the US market altogether, it decided ultimately that such a move would impede the company's ability to serve British companies with US operations.
Reads: 1868 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/caw111302.cfm
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