, an early member of New York’s Silicon Alley, will no longer sell DSL service, choosing to focus on more profitable services such as Web hosting, streaming media and managed co-location services.
The company entered the DSL market four years ago through a partnership with Covad
. Its accounts will be transfered to Covad. Terms of the transfer were not disclosed.
“While we have not actively sold new DSL accounts for the past 2 years, the ongoing servicing of the 850 DSL customers, which had an average monthly revenue of only $200, was not profitable for Globix,” said Peter Stevenson, Globix CEO.
By comparison, Stevenson said non-DSL accounts generate about $3,300 in revenue per month.
The company said it has plenty of room in its five data centers to handle additional co-location and hosting business. At the 2002, it was using about 40 percent of its 78,000 square feet of space.
“Globix has the physical infrastructure needed to scale its collocation and hosting business,” Stevenson said. “And now we are clearly focused on increasing our Managed Services and Streaming Media business which represented approximately 20 perecnt of our fiscal Q1 revenue.”
Globix emerged from Chapter 11 proceedings last year with a leaner organization, nearly debt-free, and very eager to take on new clients. Today’s move is aimed at making sure that those clients does help the bottom line.