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eBay Signs AboveNet, Exodus for Back-End Support

In an effort to prevent the site crashes which have plagued the auction site, eBay, Inc. Friday announced that it will outsource its backend Internet technology to AboveNet Communications and Exodus Communications.

eBay (EBAY) will outsource its Web servers, database servers and Internet routers as well as increasings its its network bandwidth via its relationships with the two companies. Through the deal, eBay extends its previous alliance with Exodus (EXDS) and inks its first partnership with AboveNet.

The online auctioneer said that the decision was based on plans to create a "utility-like service" for its 5.6 million customers.

"Millions of people rely on eBay to do business and pursue their collecting passions, and having our technology hosted at Exodus and AboveNet will help us manage network capacity and provide a more robust Web backbone," said Bob Quinn, eBay's chief information officer.

"These companies are market leaders in hosting large volume Web sites and we foresee working closely with them as eBay expands into new geographies and introduces new user services."

eBay last week added regional auctions to its network in 50 major cities in the US. The company is also continuing its international expansion, as well and extending into new fields of auctioneering such as memorabilia and rare collectibles.

eBay suffered a 22-hour crash in June which resulted in $2 million in lost revenue, and another series of shorter crashes in August.

The auction megalith may have much of a chance to recover from future outages, since Microsoft (MSFT) and a team of other high-profile Internet companies have formed a network of auction sites under the Fairmarket banner.



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