Security outsourcer closes doors on corporations


Security outsourcer closes doors on corporations

Pilot Network Services, beleaguered provider of security outsourcing services with a roster of major corporate clients, last week said it had suspended business operations and laid off all of its workers.

In a brief statement Pilot said the shutdown took place at the end of the business day on 25 April. It said a small number of key employees will temporarily stay on to assist in "client transition activities," but it added that the management team doesn't expect the company to resume operations "in its current condition."

Pilot had been monitoring and providing security services on 70,000 corporate networks, with clients including Sovereign Bancorp, Providian Financial and The Washington Post. It offered services such as secure network hosting, Internet access management, virtual private networking, encryption, authentication and virus scanning.

The decision to shut down appeared to leave companies scrambling for alternatives, although some said they had been told that Pilot's service would continue until 30 April.

Pilot had been struggling financially, and earlier this month, it laid off 23% of its workers in a bid to cut costs

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