Round Tale

(The Hosting News) – Mimecast® today announced the results of its Cloud Computing Adoption Survey, which examined the perception and adoption of cloud computing solutions among 565 respondents responsible for managing their organization’s IT operations and budget across the U.S. and Canada in the Fall of 2009.

Data from the recently completed online survey highlights the complex, often contrasting, thought process of IT decision makers regarding cloud computing. While security and integration issues are clearly users’ biggest fears about cloud computing, these concerns have not dissuaded companies from implementing cloud-based applications within their corporate infrastructure. The well-known fears with cloud computing appear to be at odds with reality, as the survey findings suggest strong satisfaction with cloud computing once it is installed. 70 percent of IT decision makers already using cloud computing are planning to move additional solutions to the cloud—most within the next 12 months—indicating that those respondents have come to quickly recognize the inherent ease of implementation, robust security features and cost-savings of cloud computing.

Survey Results

Those That Have Used Cloud-Based Services are Coming Back for More

• 70 percent of companies already using cloud computing solutions are planning on moving additional applications to the cloud—and a majority of them are looking to do so in the next 12 months.  This shows that respondents that have used cloud-based solutions have seen their business and operational value and want to expand that success to other application areas.

Companies’ Cloud Fears are Waning…

• 62 percent of all respondents have considered or are considering cloud computing.
• When asked what would change their minds about cloud computing, respondents ranked more mature solutions and better integration with existing systems as their top two needs (33 percent for maturity, 32 percent for integration).

… but Security Concerns and Existing Investments Remain Biggest Roadblocks to Further Adoption

• Companies remain hesitant because of perceived security issues. The findings show that security concerns were the leading reason given by respondents in all categories for not moving forward with cloud-based applications. 46 percent of respondents that had considered cloud-based applications chose security as the main reason for not moving forward. This was also true across a majority of industries, including financial services (76 percent), energy (75 percent), government (67 percent), retail (61 percent) and technology (40 percent).
• The investments made in current IT infrastructure and worries about integration also prevented companies from taking the next step toward cloud computing. 32 percent of respondents that had considered cloud-based applications named existing infrastructure investments as the reason for not moving to the cloud; while 26 percent said that legacy/integration worries had stopped them from going any further. Between the time and effort spent building their current infrastructure and fears around integrating existing systems into the cloud, respondents and their companies have been afraid to abandon what they know for what they don’t.
• Cost also continued to be a concern for those considering cloud computing, especially among government (67 percent), healthcare (52 percent) and legal (40 percent) respondents. This may have more to do with this year’s decreased IT budgets than the expense of cloud services.
• However, of those that have already implemented the cloud, 81 percent of legal, 77 percent of retail, 75 percent of government, 74 percent of technology, 72 percent of healthcare and 68 percent of financial services respondents were planning on moving additional applications to it in the future—showing that these fears can be overcome.

Certain Industries are Moving Faster than Others

• The top three industries adopting cloud computing solutions are technology (with 53 percent), financial services (40 percent) and legal (37 percent). This statistic shows that respondents within heavily-regulated markets such as legal and financial services do not share the belief that cloud-based services make it harder to prove compliance with industry regulations.
• Government has the smallest adoption, with only 19 percent using cloud-based solutions.

Email and CRM Applications Add the Most Value

• Among the respondents already using cloud computing solutions, email (23 percent) and CRM (18 percent) proved to be the most valuable.
• 33 percent of this group have moved email management to the cloud, 26 percent deployed cloud-based CRM systems, 26 percent moved email archiving and 22 percent have moved storage functions.

Cost is Still the Primary Motivation for Moving to the Cloud, but Agility is Gaining

• Cost savings (54 percent) are still the primary motivation behind the adoption of cloud-based services. However, there is evidence that the other business benefits of cloud computing are gaining ground. One of the major benefits of the cloud is its ability to make an enterprise better prepared to react and respond to unexpected changes—or to easily add-on new services as needed. The findings show that 49 percent of respondents support this idea, indicating agility/scalability as a main reason for moving services to the cloud. In addition, respondents also rated efficiency (39 percent) and streamlined administration (36 percent) as key reasons. As the adoption of cloud-based services grows, so does the understanding of its value.

“This research shows that once enterprises experience cloud-based applications, their fears about integration, reliability and costs are immediately alleviated,” said Mimecast Chief Executive Officer, Peter Bauer. “The survey’s results point to a bright future ahead for cloud computing as more and more companies look to the cloud to create an efficient and agile organization.”

Cloud Computing Adoption Survey Results Released is a post from: Hosting News and Reseller Web Hosting information.

(The Hosting News) – Mimecast® today announced the results of its Cloud Computing Adoption Survey, which examined the perception and adoption of cloud computing solutions among 565 respondents responsible for managing their organization’s IT operations and budget across the U.S. and Canada in the Fall of 2009.

Data from the recently completed online survey highlights the complex, often contrasting, thought process of IT decision makers regarding cloud computing. While security and integration issues are clearly users’ biggest fears about cloud computing, these concerns have not dissuaded companies from implementing cloud-based applications within their corporate infrastructure. The well-known fears with cloud computing appear to be at odds with reality, as the survey findings suggest strong satisfaction with cloud computing once it is installed. 70 percent of IT decision makers already using cloud computing are planning to move additional solutions to the cloud—most within the next 12 months—indicating that those respondents have come to quickly recognize the inherent ease of implementation, robust security features and cost-savings of cloud computing.

Survey Results

Those That Have Used Cloud-Based Services are Coming Back for More

• 70 percent of companies already using cloud computing solutions are planning on moving additional applications to the cloud—and a majority of them are looking to do so in the next 12 months.  This shows that respondents that have used cloud-based solutions have seen their business and operational value and want to expand that success to other application areas.

Companies’ Cloud Fears are Waning…

• 62 percent of all respondents have considered or are considering cloud computing.
• When asked what would change their minds about cloud computing, respondents ranked more mature solutions and better integration with existing systems as their top two needs (33 percent for maturity, 32 percent for integration).

… but Security Concerns and Existing Investments Remain Biggest Roadblocks to Further Adoption

• Companies remain hesitant because of perceived security issues. The findings show that security concerns were the leading reason given by respondents in all categories for not moving forward with cloud-based applications. 46 percent of respondents that had considered cloud-based applications chose security as the main reason for not moving forward. This was also true across a majority of industries, including financial services (76 percent), energy (75 percent), government (67 percent), retail (61 percent) and technology (40 percent).
• The investments made in current IT infrastructure and worries about integration also prevented companies from taking the next step toward cloud computing. 32 percent of respondents that had considered cloud-based applications named existing infrastructure investments as the reason for not moving to the cloud; while 26 percent said that legacy/integration worries had stopped them from going any further. Between the time and effort spent building their current infrastructure and fears around integrating existing systems into the cloud, respondents and their companies have been afraid to abandon what they know for what they don’t.
• Cost also continued to be a concern for those considering cloud computing, especially among government (67 percent), healthcare (52 percent) and legal (40 percent) respondents. This may have more to do with this year’s decreased IT budgets than the expense of cloud services.
• However, of those that have already implemented the cloud, 81 percent of legal, 77 percent of retail, 75 percent of government, 74 percent of technology, 72 percent of healthcare and 68 percent of financial services respondents were planning on moving additional applications to it in the future—showing that these fears can be overcome.

Certain Industries are Moving Faster than Others

• The top three industries adopting cloud computing solutions are technology (with 53 percent), financial services (40 percent) and legal (37 percent). This statistic shows that respondents within heavily-regulated markets such as legal and financial services do not share the belief that cloud-based services make it harder to prove compliance with industry regulations.
• Government has the smallest adoption, with only 19 percent using cloud-based solutions.

Email and CRM Applications Add the Most Value

• Among the respondents already using cloud computing solutions, email (23 percent) and CRM (18 percent) proved to be the most valuable.
• 33 percent of this group have moved email management to the cloud, 26 percent deployed cloud-based CRM systems, 26 percent moved email archiving and 22 percent have moved storage functions.

Cost is Still the Primary Motivation for Moving to the Cloud, but Agility is Gaining

• Cost savings (54 percent) are still the primary motivation behind the adoption of cloud-based services. However, there is evidence that the other business benefits of cloud computing are gaining ground. One of the major benefits of the cloud is its ability to make an enterprise better prepared to react and respond to unexpected changes—or to easily add-on new services as needed. The findings show that 49 percent of respondents support this idea, indicating agility/scalability as a main reason for moving services to the cloud. In addition, respondents also rated efficiency (39 percent) and streamlined administration (36 percent) as key reasons. As the adoption of cloud-based services grows, so does the understanding of its value.

“This research shows that once enterprises experience cloud-based applications, their fears about integration, reliability and costs are immediately alleviated,” said Mimecast Chief Executive Officer, Peter Bauer. “The survey’s results point to a bright future ahead for cloud computing as more and more companies look to the cloud to create an efficient and agile organization.”

Cloud Computing Adoption Survey Results Released is a post from: Hosting News and Reseller Web Hosting information.

(The Hosting News) – According to a survey of 150 information technology decision makers from various small and large companies across the country by ReliaCloud, a national IT infrastructure company based in Minneapolis, three-quarters of companies identified the development of cloud computing as a priority for 2010.

The ReliaCloud survey included 150 professionals who held positions of CXOs, owners, president, vice president or technical decision makers. Roughly three-quarters of the decision makers were familiar with cloud computing and identified cloud computing as a priority among their organization’s leadership. A majority (85.3%) of decision makers were either currently implementing cloud computing services or had plans to do so within the next 12 months.
“These findings confirm expert projections that cloud computing is poised to become an inevitable and crucial part of a company’s technology infrastructure,” said Johnny Hatch, Product Manager for ReliaCloud. “More and more companies are realizing the cloud’s potential, not just for protecting data, but also providing better access to it.”

A majority (95.4%) of IT decision makers believed that cloud computing would either radically shift or have a definite impact on how technology services will be provided within their companies. As for the services that would be best suited to cloud computing, the survey indicated that “Web Applications,” “Data Bases” and “Data Storage” topped the list.

Issues like “up time/high availability,”, “performance” and “cost savings” were cited as the top reasons for using cloud computing, while “security” and “support” were cited as the top barriers to adopting the technology.

Cloud Computing is a general technology term for anything that involves delivering hosted services over the Internet. These types of services are broadly divided into three categories: Infrastructure-as-a-Service, Platform-as-a-Service, and Software-as-a-Service. The name cloud computing was inspired by the cloud symbol that’s often used to represent the Internet in flow charts and diagrams.

ReliaCloud retained Evalueserve, an independent research firm, to conduct 150 quantitative interviews and deliver analysis stemming from the aggregated and cross-tabulated data. Evalueserve executed a rigorous selection and screening process to ensure the eligibility of all respondents, and conducted audits and logic tests to validate all the data. Evalueserve is is an accredited member of multiple internationally reputed market research standards organizations. As such, the research was conducted in adherence with well-established industry standards.

US Companies Ready For Added Cloud Computing Investment is a post from: Hosting News and Reseller Web Hosting information.

(The Hosting News) – According to a survey of 150 information technology decision makers from various small and large companies across the country by ReliaCloud, a national IT infrastructure company based in Minneapolis, three-quarters of companies identified the development of cloud computing as a priority for 2010.

The ReliaCloud survey included 150 professionals who held positions of CXOs, owners, president, vice president or technical decision makers. Roughly three-quarters of the decision makers were familiar with cloud computing and identified cloud computing as a priority among their organization’s leadership. A majority (85.3%) of decision makers were either currently implementing cloud computing services or had plans to do so within the next 12 months.
“These findings confirm expert projections that cloud computing is poised to become an inevitable and crucial part of a company’s technology infrastructure,” said Johnny Hatch, Product Manager for ReliaCloud. “More and more companies are realizing the cloud’s potential, not just for protecting data, but also providing better access to it.”

A majority (95.4%) of IT decision makers believed that cloud computing would either radically shift or have a definite impact on how technology services will be provided within their companies. As for the services that would be best suited to cloud computing, the survey indicated that “Web Applications,” “Data Bases” and “Data Storage” topped the list.

Issues like “up time/high availability,”, “performance” and “cost savings” were cited as the top reasons for using cloud computing, while “security” and “support” were cited as the top barriers to adopting the technology.

Cloud Computing is a general technology term for anything that involves delivering hosted services over the Internet. These types of services are broadly divided into three categories: Infrastructure-as-a-Service, Platform-as-a-Service, and Software-as-a-Service. The name cloud computing was inspired by the cloud symbol that’s often used to represent the Internet in flow charts and diagrams.

ReliaCloud retained Evalueserve, an independent research firm, to conduct 150 quantitative interviews and deliver analysis stemming from the aggregated and cross-tabulated data. Evalueserve executed a rigorous selection and screening process to ensure the eligibility of all respondents, and conducted audits and logic tests to validate all the data. Evalueserve is is an accredited member of multiple internationally reputed market research standards organizations. As such, the research was conducted in adherence with well-established industry standards.

US Companies Ready For Added Cloud Computing Investment is a post from: Hosting News and Reseller Web Hosting information.

Oxfordshire, United Kingdom – (The Hosting News) – July 14, 2009 – Storm Internet, an International web site hosting company, has revealed an increase of 120% growth since July 2008.

The Oxfordshire based company, which provides high quality web hosting solutions for individuals and businesses around the world, has seen its profits treble in the last 12 months – highlighting that it’s still possible for businesses to succeed in the economic downturn.

Salim Benadel, CEO explains, ”I believe our marked success this year is down to two things; offering an excellent product and providing customer support that is second to none. We understand that buying anything IT related is an important business decision. And that’s why we place so much emphasis on support. From our 24/7 hour customer service, to Live Chat, to assigning each customer a dedicated Account Manager, we are committed to providing the best expert service we can.”

Mr. Benadel believes that word of mouth is the best way to receive and retain businesses, continuing, ”The majority of our customers come from recommendation; whether it is from friends, colleagues or as a result of online customer reviews. We work on the principal that if you spend time with you customer and build a solution to their IT problems, then not only will they stay with you, but they will recommend your services to other people. That’s the type of growth we want.”

Mr. Benadel also doesn’t believe in spending thousands on advertising and marketing, saying ”Let’s face it anyone can pay to blow their own trumpet. We hope that our products and services do the talking for us.”

Storm’s vision for future growth is to continue offering excellent customer service and to focus on flexibility in their range of products and services. Recently Storm launched a range of business solutions for small and medium sized organisations.

Mr. Benadel added, ”In order to compete in the economic downturn, it has become more important than ever for small businesses to sell their services on the internet. And it’s not just having a good website that’s a must. An effective email system is imperative, as is ensuring that important data is backed up.”

Recent statistics from the London Chamber of Commerce highlight that 90% of businesses that lose data from a disaster are forced to shut down within 2 years.

Since 1996, Storm Internet has built a reputation of providing consistent and reliable Internet connectivity in urban and rural communities. An industry leader in fixed-wireless connectivity, Storm currently maintains one of the largest broadband wireless networks in North America, covering approximately 35,000 square kilometers, spanning more than 50 communities and municipalities (see: coverage map/chart). Through a network of partners, resellers, and affiliates, Storm continues to demonstrate a leadership position in connecting urban and rural communities with broadband infrastructure.

To learn more, please visit: www.storminternet.co.uk.

Oxfordshire, United Kingdom – (The Hosting News) – July 14, 2009 – Storm Internet, an International web site hosting company, has revealed an increase of 120% growth since July 2008.

The Oxfordshire based company, which provides high quality web hosting solutions for individuals and businesses around the world, has seen its profits treble in the last 12 months – highlighting that it’s still possible for businesses to succeed in the economic downturn.

Salim Benadel, CEO explains, ”I believe our marked success this year is down to two things; offering an excellent product and providing customer support that is second to none. We understand that buying anything IT related is an important business decision. And that’s why we place so much emphasis on support. From our 24/7 hour customer service, to Live Chat, to assigning each customer a dedicated Account Manager, we are committed to providing the best expert service we can.”

Mr. Benadel believes that word of mouth is the best way to receive and retain businesses, continuing, ”The majority of our customers come from recommendation; whether it is from friends, colleagues or as a result of online customer reviews. We work on the principal that if you spend time with you customer and build a solution to their IT problems, then not only will they stay with you, but they will recommend your services to other people. That’s the type of growth we want.”

Mr. Benadel also doesn’t believe in spending thousands on advertising and marketing, saying ”Let’s face it anyone can pay to blow their own trumpet. We hope that our products and services do the talking for us.”

Storm’s vision for future growth is to continue offering excellent customer service and to focus on flexibility in their range of products and services. Recently Storm launched a range of business solutions for small and medium sized organisations.

Mr. Benadel added, ”In order to compete in the economic downturn, it has become more important than ever for small businesses to sell their services on the internet. And it’s not just having a good website that’s a must. An effective email system is imperative, as is ensuring that important data is backed up.”

Recent statistics from the London Chamber of Commerce highlight that 90% of businesses that lose data from a disaster are forced to shut down within 2 years.

Since 1996, Storm Internet has built a reputation of providing consistent and reliable Internet connectivity in urban and rural communities. An industry leader in fixed-wireless connectivity, Storm currently maintains one of the largest broadband wireless networks in North America, covering approximately 35,000 square kilometers, spanning more than 50 communities and municipalities (see: coverage map/chart). Through a network of partners, resellers, and affiliates, Storm continues to demonstrate a leadership position in connecting urban and rural communities with broadband infrastructure.

To learn more, please visit: www.storminternet.co.uk.

Quebec, Canada – (The Hosting News) – May 22, 2009 – Web hosting, Internet services and IT infrastructure provider, iWeb, has released its financial results for the quarter ending March 31, 2009, including increased revenues by 94%, reaching $6.9 million for the second quarter; almost doubling the performance for the same quarter of 2008.

Eric Chouinard, President and CEO of iWeb remarked, ”Our revenue growth is consistent, almost double what it was 12 months ago. And, with operating income over $300,000, EBITDA close to $2 million, which is nearly 30% of revenues, the strength and full potential of our business is becoming easier to understand.”

Second Quarter Highlights include:

• Adjusted EBITDA of almost $2.0 million for 2009, or 28.5% of revenues
• Operating income of $324,000, compared to $6,000 12 months earlier
• Net loss of $246,000, following the additional unrealized theoretical exchange lost on long-term debt in U.S. dollars

Martin Leclair , President, Products and Technology noted, ”Monthly revenues reached the $2.4 million mark in March, though we have to work even harder to maintain that pace, given the current economic context. In recent months, we noticed a slowdown in new net recurring revenues, mostly due to an increase in the churn rate. This increase in churn is mainly attributable to current clients who are downsizing the level of certain services which were not considered essential at this time. We believe that these same services will be reintroduced when our customers’ situation will allow them to pursue more ventures.”

Philip Tousignant , Chief Financial Officer added, ”The strong improvement of our operations, in terms of profitability, is not yet reflected in our net results. Due to financial expenses resulting from external market conditions, totalling $560,000 for the last quarter, we are reporting a net loss. For the second consecutive quarter, the main element of these financial expenses is the unrealized exchange loss on the long-term debt of $10 million US.”

Revenues for the second quarter ended March 31, 2009 increased by $3.4 million or 94%, compared to the same period of 2008, to reach almost $6.9 million.

Revenues for the second quarter of fiscal 2009 originated from iWeb’s three main service offerings as follows: Dedicated servers accounted for 85%, followed by 8% for co-location services and 7% for the shared web hosting. 78% of iWeb revenues for the quarter were generated in U.S. dollars, a significant advantage for the Company during the last quarter, as the impact of the decrease in value of the Canadian dollar against the U.S. dollar compared to the same period of last year, had a positive impact of more than $1.0 million on revenues. Without taking into account this impact, revenues would have increased by 65% compared to the quarter ended on March 31, 2008.

Gross profit was 51% of revenues for the second quarter of 2009 compared to 53% for the same period of the previous year. The favourable impact of the variation of Canada/U.S. exchange rates on gross profit margin for the last quarter was more than compensated by higher payroll expenses in order to support the sustained high growth of the Company’s operations.

Operating expenses for the quarter went from 52.1% of revenues in 2008 to 46.3% in 2009. This improvement is explained by lower costs compared to the revenues for selling and administrative expenses, but compensated by a rise in interest expenses. Selling expenses decreased from 17.3% to 15.3% of revenues for the quarter ended March 31, 2009. Administrative expenses decreased from 26.0% to 20.2% of revenues for the quarter ended March 31, 2009. Interest expenses increased significantly (from 7.2% to 10.9% of revenues for the second quarter of 2009). This is caused by the increase in long-term debt in order to support the important addition of the infrastructures of the Company, the greater part of which carry interests in U.S. currency.

The operating income of the Company was $324,000 for the quarter ended March 31, 2009, compared to $6,000 for the corresponding period of the preceding year.

The other financial expenses represent elements which are the consequence of the external conditions of the market. These expenses amounted to $560,000 for the last quarter ended March 31, 2009. The most important element of these expenses is the unrealized exchange loss on the long-term debt of $10 million US. For the end of quarter ended March 31, 2009, the Canada/U.S. exchange rate was 1.26, compared to 1.225 for the beginning of quarter, explaining the unrealized loss of $356,000.

Taking into account the impact of the other financial expenses, the Company recorded a net loss of $246,000 for the second quarter of 2009, compared to a net income of $19,000 for the quarter ended March 31, 2008.

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies in 2008 according to PROFIT Magazine. Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad; and employs over 170 full-time employees providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 21,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange.

To learn more, please visit: http://about.iweb.com.

Quebec, Canada – (The Hosting News) – May 22, 2009 – Web hosting, Internet services and IT infrastructure provider, iWeb, has released its financial results for the quarter ending March 31, 2009, including increased revenues by 94%, reaching $6.9 million for the second quarter; almost doubling the performance for the same quarter of 2008.

Eric Chouinard, President and CEO of iWeb remarked, ”Our revenue growth is consistent, almost double what it was 12 months ago. And, with operating income over $300,000, EBITDA close to $2 million, which is nearly 30% of revenues, the strength and full potential of our business is becoming easier to understand.”

Second Quarter Highlights include:

• Adjusted EBITDA of almost $2.0 million for 2009, or 28.5% of revenues
• Operating income of $324,000, compared to $6,000 12 months earlier
• Net loss of $246,000, following the additional unrealized theoretical exchange lost on long-term debt in U.S. dollars

Martin Leclair , President, Products and Technology noted, ”Monthly revenues reached the $2.4 million mark in March, though we have to work even harder to maintain that pace, given the current economic context. In recent months, we noticed a slowdown in new net recurring revenues, mostly due to an increase in the churn rate. This increase in churn is mainly attributable to current clients who are downsizing the level of certain services which were not considered essential at this time. We believe that these same services will be reintroduced when our customers’ situation will allow them to pursue more ventures.”

Philip Tousignant , Chief Financial Officer added, ”The strong improvement of our operations, in terms of profitability, is not yet reflected in our net results. Due to financial expenses resulting from external market conditions, totalling $560,000 for the last quarter, we are reporting a net loss. For the second consecutive quarter, the main element of these financial expenses is the unrealized exchange loss on the long-term debt of $10 million US.”

Revenues for the second quarter ended March 31, 2009 increased by $3.4 million or 94%, compared to the same period of 2008, to reach almost $6.9 million.

Revenues for the second quarter of fiscal 2009 originated from iWeb’s three main service offerings as follows: Dedicated servers accounted for 85%, followed by 8% for co-location services and 7% for the shared web hosting. 78% of iWeb revenues for the quarter were generated in U.S. dollars, a significant advantage for the Company during the last quarter, as the impact of the decrease in value of the Canadian dollar against the U.S. dollar compared to the same period of last year, had a positive impact of more than $1.0 million on revenues. Without taking into account this impact, revenues would have increased by 65% compared to the quarter ended on March 31, 2008.

Gross profit was 51% of revenues for the second quarter of 2009 compared to 53% for the same period of the previous year. The favourable impact of the variation of Canada/U.S. exchange rates on gross profit margin for the last quarter was more than compensated by higher payroll expenses in order to support the sustained high growth of the Company’s operations.

Operating expenses for the quarter went from 52.1% of revenues in 2008 to 46.3% in 2009. This improvement is explained by lower costs compared to the revenues for selling and administrative expenses, but compensated by a rise in interest expenses. Selling expenses decreased from 17.3% to 15.3% of revenues for the quarter ended March 31, 2009. Administrative expenses decreased from 26.0% to 20.2% of revenues for the quarter ended March 31, 2009. Interest expenses increased significantly (from 7.2% to 10.9% of revenues for the second quarter of 2009). This is caused by the increase in long-term debt in order to support the important addition of the infrastructures of the Company, the greater part of which carry interests in U.S. currency.

The operating income of the Company was $324,000 for the quarter ended March 31, 2009, compared to $6,000 for the corresponding period of the preceding year.

The other financial expenses represent elements which are the consequence of the external conditions of the market. These expenses amounted to $560,000 for the last quarter ended March 31, 2009. The most important element of these expenses is the unrealized exchange loss on the long-term debt of $10 million US. For the end of quarter ended March 31, 2009, the Canada/U.S. exchange rate was 1.26, compared to 1.225 for the beginning of quarter, explaining the unrealized loss of $356,000.

Taking into account the impact of the other financial expenses, the Company recorded a net loss of $246,000 for the second quarter of 2009, compared to a net income of $19,000 for the quarter ended March 31, 2008.

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies in 2008 according to PROFIT Magazine. Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad; and employs over 170 full-time employees providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 21,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange.

To learn more, please visit: http://about.iweb.com.