Intel Corp. is scrapping its Web hosting business after less than three years of operation and will take a US$100 million charge in its second fiscal quarter as a result of the move, the company announced Tuesday.
After kicking off its Intel Online Services (IOS) Web hosting business in 1999, Intel is now winding down operations due to a poor outlook for the Web hosting market, the company said in a statement. Intel will support customers who had signed up for the service for the next 12 months while it works to move them over to a new hosting company.
As a result of cancelling the business, Intel expects to take a charge of close to $100 million in its second quarter, related to the write-down of capital assets and other costs, according to the statement. "The bottom line was that future growth and financial projections did not meet Intels requirements," said Christine Chartier, a spokeswoman at Intel.
Customers of IOS include Sony Corp., The U.S. Army and the American Stock Exchange. The services included managing servers and Web sites for customers.
News source: ITWorld - Intel quits Web hosting business