Intel has been looking at the market trends and statistics, and claim the financial projections have led them to this decision. Intel Online Services (IOS), the subsidiary that looks after the managed hosting services, will be integrated into Intel over the next 30 days. Intel will continue to offer the service until June 30, 2003.
-All IOS personnel and physical assets will be integrated into Intel's internal IT organisations," a spokesperson for Intel told ZDNet Australia. -We're going to continue to provide those services, and we're going to work with our customers to ensure a smooth transition, but we're not going to be pursuing any new customers."
The spokesperson said no lay-offs are expected. -Everybody has valuable skills which can be used internally," she said.
World-wide Intel expect to take a one-off hit of US$100 million in the second quarter, related to the write-down of capital assets and other costs associated with phasing out IOS.
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