Cutting Costs
Exodus Communications plans to announce a new managed service today that is expected to dramatically cut information technology infrastructure costs for enterprise customers. The service, delivered through an alliance with Ejasent, is intended to prevent businesses from overbuilding their computer processing power to handle peak loads.
ISPs Merge
NetZero and Juno Online Services will have about 7 million subscribers — only about 1 million of them paid — when they merge in a $70.7 million all-stock deal to form United Online.
Bumpy Takeoff
Online travel agency Orbitz was deluged with calls and bookings during a rough launch last week. Orbitz, backed by major airlines including American Airlines and United Airlines, announced plans to double its call-center staff to more than 200 during the next three weeks.
Taking Stock
WorldCom gained shareholders approval to split its long-distance telephone business from its data and Internet operations. A new tracking stock, “MCIT,” will reflect the phone business, while existing “WCOM” will represent the rest of the company.
Kovacic to FTC
George Washington University law professor and antitrust expert William Kovacic will soon join the Federal Trade Commission as general counsel. Kovacic has been a high-profile commentator in the Microsoft/Department of Justice trial.
Spam Law
Washington states tough law prohibiting senders of spam from forging headers or faking addresses to or from state computers has been upheld. A state Supreme Court overturned a lower court ruling that said the law unfairly burdened companies.