X
Home & Office

The meltdown continues

The Internet shakeout, which began in earnest last year with the B2C sector continues into the realms of Internet access and B2B, according to a 2001 first-half "Shutdown Report" issued by Webmergers.com.
Written by Mark Mehler, Contributor
The Internet shakeout, which began in earnest last year with the B2C sector, is beginning to lap over into the realms of Internet access, B2B infrastructure and professional services, according to the 2001 first-half "Shutdown Report" issued by Webmergers.com.

.According to the report, more than nine times as many Internet companies closed up shop in the past six months - a total of 330 - than in the comparable period last year. Meanwhile, the number of shutdowns held steady in June-53 firms went under, vs. 54 in May-suggesting that the dot-com death rate may be plateauing.

YES

Among ISPs, ASPs and consultancies, however, the shutdown pace is quickening. In June alone, leading casualties included ISP PSINet, which filed a Chapter 11 bankruptcy petition; Covad's Southeast regional ISP Bluestar Communications; Minnesota-based hosting provider Dantis; and human-resources ASP iTango Software. Overall, 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 gone belly-up since Jan. 1,as compared with only seven such firms during all of last year.

Editorial standards