Search Web HostingNaviSite Moves Away from Colo to Focus on Cloud Hosting
- By Justin Lee, March 12, 2010
(WEB HOST INDUSTRY REVIEW) -- Data center operator NaviSite (www.navisite.com) unveiled this week that it is shifting its focus away from colocation as it makes a move toward hosting, managed services and cloud computing services, according to a report by Data Center Dynamics.
The company also announced it will launch its new fully managed cloud services next month with the full-production release slated for a May release.
After seeing losses of $3.3 million in the second quarter of fiscal 2009, the company has managed to improve on this a full year later, reporting a net loss of $2.9 million in the second quarter of fiscal 2010.
Although the company saw a one percent year-over-year drop in total revenue for the quarter, reporting earnigns of $37.7 million, it saw a slight year-over-year increase in its hosting revenue with $36.1 million.
In February, NaviSite sold its application management division for Lawson and Kronos to application service provider Velocity Technology Solutions, which also took over NaviSite's lease of its Mineapolis data center.
Under the direction of CEO Arthur Becker and R. Brooks Borcherding, who was promoted to president earlier this month, NaviSite is restrategizing its approach.
The company is emphasizing hosting and managed services and looking to get rid of its data centers that have been used for other purposes, including six of its "non-core" pure colocation data centers Beckers says it plans to sell by the end of fiscal 2010.
NaviSite also announced the first customer win, a large international insurance provider whose name was not disclosed, for its new fully managed services offering.
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