Allegiance Telecom Creates Web Hosting Division - Brief Article

ISP Business, May, 2001

Allegiance Telecom Inc., an integrated communications provider (ICP), announced the creation of a centralized Web hosting division. This new division is the result of the critical mass created by the growth in Allegiance's Internet and hosting business and acquisitions of several regional Internet service companies. It will focus on developing, marketing, and selling national Web hosting and Internet connectivity services.

The new centralized Allegiance Web hosting division will market and sell its services, including a full-suite of shared, dedicated, managed, and co-located hosting services and Internet connectivity services, under a separate brand.

The total US Web hosting services market was estimate at $3.9 billion in 2000, according to IDC, a subsidiary of International Data Group, and is expected to grow to $24.8 billion by 2004.

Allegiance also announced it acquired Web hosting assets, including the customers and world-class Internet data center, of Medford, Massachusetts-based HarvardNet. In additional, Allegiance announced it acquired Adgrafix, a Web hosting services company headquartered in Sudbury, MA. These new acquisitions solidify the East Coast footprint of Allegiance's new Web hosting division.

This vibrant Web hosting and data presence, combined with Allegiance Telecom's robust voice business, provide Allegiance's target customer audience of small- and medium-sized enterprises (SMEs) with a wide array of communication and Internet solutions to compete in today's fast-paced business world.

HarvardNet, a provider of dedicated, managed, and co-located Web hosting and Internet connectivity services to SMEs, was a pioneer in the competitive New England marketplace. The HarvardNet employees who joined Allegiance Telecom are contributing to build Allegiance's burgeoning Web hosting division. Mark Washburn, former HarvardNet president and CEO, joined Allegiance as senior vice president of Web hosting, responsible for operations of the newly created division. He reports to Dan Yost, Allegiance president and COO.

Initiating its Web business in 1995, Adgrafix provides shared and dedicated Web hosting services to small- and medium-sized businesses and organizations around the world. Adgrafix's virtual and dedicated Web hosting services feature enhanced software for creating secure electronic commerce sites. Adgrafix has several thousand customers located in more than 90 countries. Adgrafix's employees will also join the Allegiance Web hosting team. Adgrafix founder and president, Robert Bennett, will report to Mark Washburn in the newly formed Allegiance Telecom Web hosting division.

Allegiance's newly acquired state-of-the-art Internet data center, located in Boston, provides customers with an integrated suite of shared and dedicated server capacity, managed hosting services, co-located hosting, and leased line Internet access. The high-performance, 20,000 square foot facility is designed for scalability and connectivity, and is served by multiple fiber providers and a dual power grid.

The hosting capacity of this newly acquired data center, coupled with the Internet data centers in Austin, Chicago, Dallas, Los Angeles, and San Diego, create a formidable national presence for Allegiance Telecom Web hosting and Internet connectivity services.