Intel has announced plans to wind down its web hosting business over the next 12 months based on market trends and financial projections for the web hosting market.
Under the plans, Intel will continue providing services to existing customers over the next 12 months and work with them after that period to ensure a smooth transition between services.
The wind-down will also hit the company’s second quarter results in the form of a US$100 million pre-tax charge, according to Intel Online Services president Dalibor Vrsalovic.
“While IOS has been successful in attracting new customers, market trends and financial projections for the hosting services industry lead us to today’s decision,” Vrsalovic said.
“Our focus will now be to fully support customers and ensure a continued high level of service while we assist them in their transition plans.”
Vrsalovic said that technology developed by Intel for the hosting business will be integrated into Intel’s e-corporation strategy.