The next big shakeout will hit off-site Web hosts, called "managed service providers." As this sector consolidates, IT customers are losing faith in hosted services.
It has been a bad week for providers of managed Internet services. Publicly held Loudcloud on Tuesday reported a US$60.3 million first-quarter loss, while Xuma was in even worse condition.
Intel 64 Fund recipients are likely to include security, location, and personalization specialists.
Intel Online Services (IOS), the company's bold Web-hosting initiative, will no longer compete for colocation customers but instead will focus on the far more lucrative market of hosting and managing services, the company will announce Tuesday. Look out start-ups.
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