Santa Clara, Calif. (June 21, 2002) -- In another setback for the struggling Web hosting industry, computer chip maker Intel Corp. announced plans to wind down its Web hosting business because of bleak business prospects.
Santa Clara, Calif.- based Intel said it will continue supporting existing users of its Intel Online Services business over the next 12 months, but no new customer engagements will be pursued. Its announcement came shortly after Loudcloud of Sunnyvale, Calif., said it was selling its Web hosting business to consulting giant Electronic Data Systems of Plano, Texas.
"While IOS has been successful in attracting new customers, market trends and financial projections for the hosting services industry led us to today's decision," said Dalibor Vrsalovic, IOS president. IOS, whose clients include Internet marketplace E-Bay, has been hosting software applications and managing Web services for businesses around the world.
Intel said that it expects to take a pre-tax charge of approximately $100 million in the second quarter.
-- John M. Covaleski
