Scribd Logo
Upload

Welcome to Scribd!

  • 21 views

    Case

    Uploaded by

    Ayush Mittal
    Exodus Communications is a web hosting company founded in 1994 that has grown to a market value of over $10 billion. It operates 22 data centers worldwide and offers sophisticated network management and professional services. The company's customers include large enterprises like eBay, Yahoo, and Merrill Lynch. While initially focused on startups, by 2000 nearly half of Exodus' customer base was large enterprises due to growing demand for managed services.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Case

    Uploaded by

    Ayush Mittal
    21 views2 pages
    Exodus Communications is a web hosting company founded in 1994 that has grown to a market value of over $10 billion. It operates 22 data centers worldwide and offers sophisticated network management and professional services. The company's customers include large enterprises like eBay, Yahoo, and Merrill Lynch. While initially focused on startups, by 2000 nearly half of Exodus' customer base was large enterprises due to growing demand for managed services.

    Original Title

    case

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Exodus Communications is a web hosting company founded in 1994 that has grown to a market value of over $10 billion. It operates 22 data centers worldwide and offers sophisticated network management and professional services. The company's customers include large enterprises like eBay, Yahoo, and Merrill Lynch. While initially focused on startups, by 2000 nearly half of Exodus' customer base was large enterprises due to growing demand for managed services.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    21 views2 pages

    Case

    Uploaded by

    Ayush Mittal
    Exodus Communications is a web hosting company founded in 1994 that has grown to a market value of over $10 billion. It operates 22 data centers worldwide and offers sophisticated network management and professional services. The company's customers include large enterprises like eBay, Yahoo, and Merrill Lynch. While initially focused on startups, by 2000 nearly half of Exodus' customer base was large enterprises due to growing demand for managed services.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    This problem has been solved!

    See the answer


    CASE-7 Founded in 1994, Exodus communications helped create the complex web hosting
    business and has attained a market value of over $10 billion. The company offers
    sophisticated system and network management, along with professional services to support
    performance for customers’ websites. Exodus manages its network infrastructure via a
    worldwide network of Internet Data Centers (IDCs) located in North America, Europe, and
    Asia pacific. Exodus has 22 data centers around the world and is building another 14. Its
    customers include eBay, Yahoo!, Merrill Lynch, British Airways and Johnson & Johnson.
    When Ellen Hancock, its CEO, joined the company before its IPO in 1998, 80% of its
    customer base was internet start-ups and 20% were in the “enterprise” category. By 2000,
    49% of the customer base was in the enterprise category. In the same time frame, it had
    grown from no consultants to 660 as managed services increased from 8% to 34% of its
    business. During this transition, Exodus bought two computer security companies and had
    moved into a number of new services.
    An example of the type of service demands that Exodus encounters occurred when the
    Webmasters of the RollingStone.com, the website of Rolling Stone magazine, had difficulty
    trying to solve a slow response time problem just a day before the publication of a
    multimedia cover story on Britney Spears. This would obviously cause a spike in demand
    that would exacerbate the response time problem. Since Exodus was hosting and maintaining
    the site, its engineers helped in solving the problem, which involved incorrect configurations
    data that caused server to use 10 to 15 seconds to refresh domain name data every few
    minutes instead of daily. Approximately 400 of its customers( 12% of its customer base of
    3300 companies) are application service providers (ASPs) that run application software for
    other firms using remote servers linked to a WAN so that those firms no longer have to install
    and maintain the software. Exodus charges for service based on usage, and this fits well with
    an ASP charging scheme. Its ASP customers range from start-ups to established software
    firms such as PeopleSoft and Oracle’s Business Online. According to Ellen Hancock, “it’s
    very hard to say what you’re not doing, but we’ve spent a lot of time trying to do that. We say
    we’re not going to know applications. We’re not in that business. We just support the
    ASP……. We have no notion of competing with Oracle on E-commerce. We do not intend to
    ever understand HR (human resources) apps. That’s a whole different skill base, and we don’t
    have it.
    Both Exodus and its rival Digex seem to be evolving into “managed service providers” but
    using different paths. In late 2000, Digex unveiled a customer self-service portal called
    myDigex.com that gives them the ability to manage and provision their own services, such as
    performance statistics, site/server layouts, asset management, and billing and help desk
    issues. In addition, it gives access to service-level agreements and Digex support staff. In
    contrast, the new but not yet named services Exodus announced included remote monitoring,
    storage management and performance monitoring. According to one industry analyst, “these
    guys are happy to host, and they’re willing to manage your servers, but they are unwilling to
    raise the level of responsibility to something that is application-specific or customer
    specific.”
    Questions:-
    14. Why should a large, technically sophisticated company like Merrill Lynch buy Web
    hosting services from Exodus Communications?                   (Marks 6)
    15. According to the case study, Exodus Communications is an ISP for ASPs, but currently
    says it is not interested in moving into that market based on its current skills. What are the
    possible advantages and disadvantages of moving into the ASP market?        (Marks 7)

    You might also like