The pace at which internet service providers (ISPs), application service providers (ASPs) and consultancies are closing down is increasing, according to a new report.
Casualties in the three groups include the US regional ISP Bluestar Communications and human resource ASP iTango Software. German health products e-tailer VitaGo and Hong Kong-based advertising space company XS-Media also closed, according to the 2001 first-half Shutdown Report by Webmergers.com.
Shutdowns are migrating from business-to-consumer (B2C) ecommerce companies to new business-oriented sectors that include internet business-to-business infrastructure and access service providers, such as dialup or digital subscriber line specialists, the report said.
"We believe that the sustained high death rate over the past three months is, in part, a result of two overlapping waves of the internet shakeout," said Webmergers.com chief executive Tim Miller.
According to the report, while B2C companies made up 73 per cent of all shutdowns last year, they accounted for only 49 per cent in the first half of 2001.
Miller said the data clearly suggests that the tail end of the B2C shakeout is overlapping with the early stages of the upheaval in more business-oriented companies, including ISPs, consultancies and infrastructure software providers, including ASPs.
So far this year 14 ASPs have shut down, compared with only a few in 2000. In addition, 48 infrastructure companies have closed their doors this year, compared with 17 in the previous 12 months.
In the professional e-services space, 26 consultancies have closed since 1 January as compared with a mere seven during the whole of last year.
Australian government to require technology and communications companies to provide access to messages
New bill avoids demanding 'backdoors' in encryption, but includes measures to compel companies to provide access to encrypted communications
Indonesian overclocker Ivan Cupa (with the aid of a lot of liquid nitrogen) achieves record overclock on AMD's latest Threadripper
Ssupermassive black hole is so big it corresponds to four per cent of the galaxy's total mass
Imminent attack will target a single bank with cloned cards used to fraudulently withdraw millions over one weekend