AT&T ditches small business Web hosting customers

Web hosting service provider Interland Inc. Friday announced that it is buying AT&T Corp.'s small business customer contracts in a deal valued between US$4 million and $12 million.

Interland's press release on the announcement includes a statement that says AT&T's sale of its small business Web hosting customers "in no way diminishes the company's strong commitment to serving its small business customers in other market segments."

While that may be true, it appears small business users will not be able to buy Web hosting services from AT&T any longer.

Under the terms of the agreement, Interland is not permitted to disclose the number of customers it is acquiring. But Interland is buying all of AT&T's shared and dedicated Web hosting customers that were using its Small Business Hosting Service (SBH) and Business Ready Dedicated Hosting Service (BRDH).

AT&T has been pretty cagey when talking about customer numbers, but it looks as if it had about 7,000 to 8,000 customers using these two offerings, says Melanie Posey, program manager at consulting firm International Data Corp.

AT&T says these two services represent a very small part of the company's overall hosting revenues. SBH and BRDH were priced from $25 and $795 per month, respectively.

Interland says it is integrating AT&T customers onto its own Web hosting platform immediately.

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