Exodus Acquires Service Metrics

Exodus Communications today snapped up Service Metrics Inc., a firm that offers Web-site performance-measurement products and services, for $280 million in stock.

Service Metrics has deployed agents in data networks to give companies an idea of what their customers in specific locations around the country are actually experiencing when they go to a certain Web site. "The view is taken from the consumer and how they view the Internet," says Exodus CEO Ellen Hancock, adding that Exodus clients increasingly want to measure performance from the customer's perspective. Service Metrics technology will be combined with other measurement technology that Exodus has developed in-house and with partners.

Service Metrics CEO and co-founder Thomas Higley says measuring how difficult it is to do business with your company is critical on the Web because customers can so easily jump to a competitor. That's sounds obvious, but many IT organizations are just now starting to measure Internet performance from the outside in, he says.