Hostworks buy blows out the books
Managed Internet hosting provider Hostworks has announced moderate losses for the half year to December 31, after acquiring competitor Interpath. The absorption of Interpath led to a consolidated loss of around $1.43 million, with an EBITDA loss of approximately $561,000. Sales, on the other hand, grew at over 105 per cent, from $4.9 million in the first half of 2001 to $10.1 million for the second half. The board is confident that Hostworks will be profitable again on a month-by-month, before-tax basis by the final quarter of this financial year.
Managed services have become one of the hottest topics of late, particularly in Australia and particularly in the field of IT security. A recent report from Meta Group in the US, however, suggests that managed security services have been "overhyped" in the last 18 months. The US has seen something of a consolidation and a shakeout of some of the smaller players, according to the report. Nevertheless, Meta believes the model, despite its immaturity, will see some more user interest in the near future. "With security operations, organisations should focus on process first, sourcing second and technology third," the report said.
IBM expands memory
IBM will begin shipping servers later this month with new memory technologies designed to boost system performance while lowering hardware costs. IBM's research arm has developed an algorithm for encoding data that makes a computer's physical memory appear to be double its size. The Memory Expansion Technology (MXT) has been added to a new chipset designed by IBM that will ship in Intel-based xSeries servers available worldwide later this month. Hardware supplier ServerWorks has licensed the technology from IBM, which means other server makers could be including it in their servers in the future. ServerWorks is an independent supplier of I/O systems for servers and storage hardware.