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The 2e2 business debacle and what it teaches IT

The collapse of the 2e2 business has proven out one of the biggest concerns on using outside companies to host, store, or operate key elements of your business: what happens if they “mess up”? As this article by Legal IT Insider explains, the company recently found itself in dire straits: But back to 2e2… the latest development came earlier this week when the administrators wrote to all 2e2′s customers, warning them that unless they committed to paying out £4000 by 5pm tonight (Friday 8th February) they would be unable to keep the data centres running and the customers might lose their data. Basically 2e2 has run out of money to keep the data centres functioning, and added complication being that the kit in the 2e2 data centres is apparently leased from HP. The problem didn't come from an IT mistake – it came from a lack of business practice and finances. This is a danger and warning for all who do not consider the risks and possible outcomes of using removed, third party companies to manage key assets. 2e2 is now under new management and, as a company, felt the shock of failure. But what about the confidence of decision makers in outsourcing to 3rd parties? The truth is, organisations need to be sure that whoever they decide to engage in storage, computing, or anything else important to the business.

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