Oct, 2001 : Verado Consolidates Data Centers, Cuts Jobs
📅 - Denver-based Verado Holdings, Inc. (verado.com), announcedyesterday in its effort to establish a fully funded business plan andprovide its current and future customers with a higher level of confidencein Verado's financial strength, the company will consolidate operations intoits two premier data centers located in Denver, Colorado and Irvine,California.
During the past year, Verado has expanded its focus and customer base awayfrom co-location services and now provides its business customers managedand professional services. Verado is able to provide these advancedservices from centralized locations and therefore no longer requiresmaintaining disperse data center facilities located near the customersoperations. This strategy allows Verado to consolidate the majority of itsoperations and achieve significant cost savings while continuing to provideadvance managed and professional services to businesses.
The streamlining of operations is expected to be complete by February of2002. The company anticipates smooth transitions for its customers. Veradowill work with its customers within the company's Dallas, Houston, SanDiego, Santa Clara, Portland and Salt Lake City data centers to migratetheir services to Verado's Denver or Irvine locations or transition them toanother service provider.
"The past year has been challenging for our entire industry due to bothmarketplace and economic conditions across the United States," said TomMcGrath, president and CEO of Verado. "The chief concerns of businesses whowant to select a managed and professional services provider are not just howadvanced their products and services are or even the cost savings that canbe achieved. Businesses want a high level of confidence in the provider'sfinancial strength and its ability to weather this tough economic storm.Today's actions, though very difficult, will provide our current and futurecustomers with that level of confidence. Through this consolidation, Veradowill strengthen its cash position, enhance its Denver and Irvine operationsand better position the company to provide advanced managed and professionalservices," said McGrath.
As a result of this streamlining, Verado will cut approximately 50positions, or 16 percent of its nationwide workforce. Verado's announcementto streamline its data center operations is consistent with the company'sactions over the last six months to strengthen its financial position withinthe marketplace, including taking steps such as the sale of its non-datacenter business units, the reduction of approximately 260 positions, and theengagement of Credit Suisse First Boston to evaluate recapitalizationalternatives.
During the past year, Verado has expanded its focus and customer base awayfrom co-location services and now provides its business customers managedand professional services. Verado is able to provide these advancedservices from centralized locations and therefore no longer requiresmaintaining disperse data center facilities located near the customersoperations. This strategy allows Verado to consolidate the majority of itsoperations and achieve significant cost savings while continuing to provideadvance managed and professional services to businesses.
The streamlining of operations is expected to be complete by February of2002. The company anticipates smooth transitions for its customers. Veradowill work with its customers within the company's Dallas, Houston, SanDiego, Santa Clara, Portland and Salt Lake City data centers to migratetheir services to Verado's Denver or Irvine locations or transition them toanother service provider.
"The past year has been challenging for our entire industry due to bothmarketplace and economic conditions across the United States," said TomMcGrath, president and CEO of Verado. "The chief concerns of businesses whowant to select a managed and professional services provider are not just howadvanced their products and services are or even the cost savings that canbe achieved. Businesses want a high level of confidence in the provider'sfinancial strength and its ability to weather this tough economic storm.Today's actions, though very difficult, will provide our current and futurecustomers with that level of confidence. Through this consolidation, Veradowill strengthen its cash position, enhance its Denver and Irvine operationsand better position the company to provide advanced managed and professionalservices," said McGrath.
As a result of this streamlining, Verado will cut approximately 50positions, or 16 percent of its nationwide workforce. Verado's announcementto streamline its data center operations is consistent with the company'sactions over the last six months to strengthen its financial position withinthe marketplace, including taking steps such as the sale of its non-datacenter business units, the reduction of approximately 260 positions, and theengagement of Credit Suisse First Boston to evaluate recapitalizationalternatives.
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