Intel Corporation plans to wind down its Intel Online Services (IOS) Web hosting business.
The company will continue providing services to existing customers over the next 12 months and will immediately begin working with those customers to ensure a smooth transition.
No new customer engagements will be pursued.
‘Market trends and financial projections for the hosting services industry lead us to today’s decision,’ said Dalibor Vrsalovic, president, Intel Online Services Inc.
‘Our focus now will be to fully support customers and ensure a continued high level of service while we assist them in their transition plans.’
As a result of the decision to wind down IOS operations, Intel expects to take a pre-tax charge of approximately $100 million in the second quarter, primarily affecting cost of sales.
The charge is related to the write-down of capital assets and other costs associated with the phasing out of IOS activity. The charge was not reflected in the company’s mid-quarter update published on June 6th.