Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management

    USi Hosting Future Uncertain

    Written by

    eWEEK EDITORS
    Published November 26, 2001
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      ASP pioneer USinternetworking Inc. is in a state of transition, teetering between its bankrupt mentors and the protégés whove stolen its momentum in the hosting space.

      Symptoms of trouble are numerous at the Annapolis, Md., company, which hosts and manages software and Web sites for its clients. Most of USis sales and marketing staff have been laid off, sources said, and debts from costly data centers and software licenses are accumulating.

      USi officials have said the $100 million in funding they announced having received last month from Bain Capital Partners LLC includes certain criteria but didnt give specifics, sources said.

      Users, many of whom purchase Web hosting but no managed applications, are readying contingencies just in case the worst happens.

      Now, industry experts say, USi can move in one of two directions—toward Chapter 11 or to the relative luxury of being a private division of Bain, the Boston venture company that also rescued application service provider Interpath Inc. in May last year.

      “It really wouldnt surprise me [if USi goes bankrupt],” said Lew Hollerbach, an ASP analyst with Bostons Aberdeen Group Inc. “From a straightforward business point of view, why does anybody file for bankruptcy? Its when you cant pay your debts. … Thats the only thing theyve got control over.”

      Bain officials would not comment. USi officials refused interview requests but provided a statement from USi CEO Andy Stern. “We are excited at the possibility of having Bain Capital as a partner to help build our business and capitalize on opportunities in the growing ASP marketplace,” the statement said.

      But customers are skeptical. “Were just as concerned as we should be. We are certainly in the process of talking to other hosting companies,” said two-year USi customer Bob Stetzel, director of development at Yankee Candle Co. Inc., in South Deerfield, Mass.

      Yankee Candle hoped that USi would provide infrastructure advice, service performance monitoring and customization options, Stetzel said. “Thats sort of the hidden cost. … Your flexibility is very limited,” he said.

      Despite USis claim, experts say that any growth will be at best sideways, not upward. Many view the companys situation as symbolic of the end of the horizontal ASP era and the beginning of a new generation led by small, verticalized companies, such as Salesforce.com Inc. and Oracle Corp.s NetLedger Inc. subsidiary.

      “They just have a lot of misplaced ego,” said Kneko Burney, an analyst at Cahners In-Stat Group, in Scottsdale, Ariz. Bankruptcy, Burney added, “would put a deep stake in their heart. … Its time to be realistic.”

      USis problems could refocus a spotlight on its direct rivals, such as Corio Inc., of San Carlos, Calif. Jamcracker Inc., of Cupertino, Calif., may also face scrutiny, as rumors circulate that it may be acquired by IBM.

      eWEEK EDITORS
      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×