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WorldStor Slashes Headcount: Page 2 of 2

The situation's been exacerbated by the sheer number of SSPs that entered the market at the same time and have been competing for the same customers. Almost $600 million in venture capital has been sunk into 20 or so SSP hopefuls over the past 18 months (see Venture Capital Survey).

”It’s basically the CLEC, BLEC, MSP, ASP markets all over again,” says James Berlino, analyst with Merrill Lynch & Co. Inc. These were the first victims of the telecom recession, he notes, but it looks like many of the SSPs will follow.

— Jo Maitland, Senior Editor, Byte and Switch http://www.byteandswitch.com