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Dana Dana Blankenhorn has been a business journalist for over 25 years and has covered the online world professionally since 1985. He founded the "Interactive Age Daily" for CMP Media, and has written for the Chicago Tribune, Advertising Age, and dozens of other publications over the years.
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Moore’s Law defines the history of technology. It held that the number of circuits etched on a given piece of silicon could double every 18 months as far as its author, Intel co-founder Gordon Moore, could see. Moore’s Law has spawned constant revolutions since then, not just in computing but in communications, in science, in a host of areas. Moore’s Law applies to radios, and to optical fiber, but there are some areas where it doesn’t apply. In this blog we’ll take a daily look at new implications of Moore’s Law in real time, as it rolls forward to create our future.
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November 24, 2005

How A Titty Bar Visit Could Cost You Big Time

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Posted by Dana Blankenhorn

rob%20mccormick.jpgAT&T and MCI are a giant step closer to pricing power over the Internet backbone because of a 2003 visit to a topless bar.

The visitor was apparently Savvis CEO Rob McCormick (left), , who with just three friends ran up a bill of $241,000, paid for it with an AmEx card, then disputed the charge for two years.

McCormick, 40, was canned Wednesday.

But this was no ordinary lover of the dance. McCormick transformed Savvis after joining it in 1999 from Bridge Information (later bought by Reuters).

Back then St. Louis-based Savvis was a medium-sized backbone and hosting provider whose big innovation was the use of Private Network Access Points (PNAPs) to reduce latency. McCormick transformed the company, taking it public in 2000, then buying Cable & Wireless' U.S. assets in 2004 for a reported bargain basement $155 million. While Moore's Law of Fiber was turning backbone provision into a killing field, in other words, McCormick was one of the killers.

Savvis is now known as a data center company and tthe leader in what McCormick calls "utility computing" -- virtualizing services and breaking the link between the applications and the hardware they supposedly run on. Here's how he put it to Infoconomy in July:

"You should not buy from someone who says they can cut your spending by 3%. The real problem is to cut your spending in half, or you are not going to get anywhere. Unless you fundamentally change something, rather than incrementally change it, then you are not going to fix it."


As you can tell, McCormick was aggressive, hard-charging, a major player and change agent in this business. He may have been the most dangerous man in America to those who preferred to sell bandwidth through an eye-dropper in order to pay off 30 years of old technology.

And now McCormick's gone. They're raising a toast to his memory in San Antonio tonight. Hopefully for them it's just cranberry juice.

Comments (2) + TrackBacks (0) | Category: Business Strategy | Economics | Internet | Telecommunications


COMMENTS

1. Stacy on November 26, 2005 09:38 PM writes...

It makes me so MAD that these pervs are running our nation's biggest companies.

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2. Tom Mariner on December 1, 2005 10:24 AM writes...

A. Keep private morals out of judgement on effective leaders in any field from politics to business. Every single person on the planet has done something that could be used against him or her. If we let this character assassination continue we will be lead by those who are skillful at mudslinging and subterfuge rather than those with effective organizational talents.

B. Hire the owner of the "titty bar" and his lawyer to run anything. The ability to get four yahoos to spend that much money to buy watered down drinks shows a sales skill way beyond what I have witnessed. On the other hand, I bet the $241,000 began as a disputed $14 for a coke and was bulked up by attorney's fees, court costs, penalties and interests.

At the beginning of my career I sent a room full of lawyers into apoplexy by instantly agreeing to settle a non-compete judgement in the first meeting. For exactly what they stated. If you think you can ever do anything but run up stupendous, exponential costs from any legal matter, you haven't realized we live in the "land of the lawyers". And you had better pay your attorney tax as soon as the bill is presented, because they are not only a party to the dipute, they run the game!

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