Customers of 2e2, which fell into administration less than two weeks ago, are being urged to move their business from the stricken company as the Administrators demand payments to keep their services going.
Bill Simpson, Director of SI & Comms Business Unit, Phoenix, says: “We are ready to provide emergency support for 2e2’s customers in the wake of its collapse. With Data Centre and Hosting Services under threat of being switched off by the Administrator and with Field Services for maintenance having being stopped already – this is a sorry position for 2e2’s customer base. Phoenix is ready to step in by offering very short-term contracts and service flexibility to step into the void that’s left. Phoenix can already deliver all the services previously supplied by 2e2 – so a quick, reliable fix is at hand for UK customers and we’re engaging with many of them right now.”
Last week a substantial number of workers were made redundant after Administrator FTI Consulting confirmed it was unable to sell the business as a going concern, and started to wind down operations. As a result, 2e2 will no longer operate services including Flexible Resourcing, Business Applications, Unified Comms and Field Support.
“The Administrators said on Friday that due to the ‘critical nature’ of 2e2’s data centre services it was seeking to ‘maintain the data centre infrastructure and keep personnel who operate the data centres, to facilitate an orderly migration of the data and systems or some other alternative solutions’. But let us be clear they then said‘..you will need to put alternative arrangements in place with immediate effect,’” continues Simpson. “Furthermore, the Administrator added: “We are currently requesting funding from customers of the Companies’ Data Centres through to Friday 15 February 2013.”
“This translates as £40,000 for the 20 largest customers and £4,000 for smaller customers, contributing a total of £960,000 in estimated funding requirements, all of which needed to be committed to before Friday 8th and paid by 12th February or the service would stop,” adds Simpson.
In its communication with the 2e2 customers, the Administrators went on to add that In the event that funding is not provided, we will be unable to maintain the Data Centre Infrastructure and we will have no alternative, other than to cease all operations without any managed wind-down of those operations.
Simpson concludes “We are aware that some 2e2 customers have already requested access to their data to transition to alternative providers but the administrators have admitted in its communication with them that the volumes held are such that it could take 16 weeks. We can work with organisations to help accelerate the move to a new hosted environment. And for distributed maintenance services (where delivery has already been stopped) we can provide emergency cover immediately on a short-term contract using our 1,000 UK-wide field engineering and technical support staff. We think it’s the right thing to do to offer a short term solution to many who are now finding themselves between a rock and a hard place.”
COMMENT: Congratulations to Phoenix for being the first to offer a switch deal for 2e2 users. And please note this is not Phoenix Business Solutions – this is another Phoenix… established in 1979 and fully listed on the London Stock Exchange, Phoenix has a turnover of £264m and employs around 2,300 people. For more information visit www.phoenix.co.uk/