Post Office turns to Andreessen's Loudcloud to run its entire internet operation
The Post Office is today expected to announce that it has chosen an ambitious young web-hosting firm set up by Netscape founder Marc Andreessen to run its entire internet operation.
Loudcloud, which is based in Silicon Valley and is preparing a flotation on the Nasdaq stock exchange, will take charge of all of the Post Office’s web operations including hardware, software, hosting and disaster recovery.
Loudcloud was co-founded by Mr Andreessen and another former Netscape executive, Tim Howes, in September 1999.
Mr Andreessen became one of earliest symbols of the dot.com boom in the late 1990s when at the age of 24 he earned £120m from the flotation of the web browsing business which has subsequently been sold to AOL.
The Post Office has said it intends to become a leading player in the e-commerce arena.
“This is an significant contract for us and we’re extremely pleased,” Mr Howes said.
“The UK is an important part of our overall strategy and we’re working hard to sign up more customers here.”
In an initial filing to the securities and exchange commission last September, Loudcloud said it planned to raise $110m (£75m) in a share issue that would value the firm at $1bn. In the first six months of 2000 it reportedly made losses of $50m.
Analysts say the success of any Loudcloud flotation will be closely watched, given Mr Andreessen’s involvement. Backers include Benchmark Capital and Morgan Stanley.
