Loudcloud to Sell Services Individually

Loudcloud, which manages Web sites for corporations, is expected today to announce that it will sell services individually rather than only as a large package, after the company’s stock price tumbled 74% since March.

Individually sold services will include Web security and database management, said Jeff Kupietzky, general manager of Loudcloud’s solutions group. The change is designed to bring in more customers and comes because businesses are cutting information technology spending amid the weak U.S. economy. Smaller packages of services are more affordable for customers, Kupietzky said.

Loudcloud, founded by Web pioneer Marc Andreessen, in June cut its fiscal 2002 sales estimate to $53 million to $57 million, because customers are taking longer to decide on technology spending. The Sunnyvale, Calif.-based company didn’t provide a previous forecast.

Customers of Loudcloud include Fannie Mae, News Corp. and Nike. Andreessen, the company’s chairman, helped develop the Netscape Internet browser.

On Friday, Loudcloud’s shares fell 12 cents to close at $1.63 on Nasdaq. The company first sold shares to the public March 8 at $6 each.