CHANGE IN ORGANIZATIONAL STRUCTURE

During the three months ended March 31, 2017, we changed our organizational structure in an effort to create more effective and efficient operations and to improve customer and product focus. In that regard, we revised the information that our chief executive officer, who is also our Chief Operating Decision Maker (“CODM”), regularly reviews for purposes of allocating resources and assessing performance. As a result, we report our financial performance based on our revised segment structure, described in more detail in note 10 “Operating Segments.” We have reclassified prior period amounts to conform to the current presentation.

The prior year reclassifications, which did not affect total revenues, total direct costs of sales and services, operating loss or net loss, are summarized as follows (in thousands):



	Three Months Ended June 30, 2016
	As Previously Reported		Reclassification			As Reported
Revenues:
Data center and network services	$	50,459	$	(50,459	)	$	—
Cloud and hosting services	23,856		(23,856		)	—
INAP COLO	—		55,827			55,827
INAP CLOUD	—		18,488			18,488
Direct costs of sales and services, exclusive of depreciation and amortization:
Data center and network services	24,650		(24,650		)	—
Cloud and hosting services	6,720		(6,720		)	—
INAP COLO	—		26,736			26,736
INAP CLOUD	—		4,634			4,634



	Six Months Ended June 30, 2016
	As Previously Reported		Reclassification			As Reported
Revenues:
Data center and network services	$	101,331	$	(101,331	)	$	—
Cloud and hosting services	48,908		(48,908		)	—
INAP COLO	—		111,708			111,708
INAP CLOUD	—		38,531			38,531
Direct costs of sales and services, exclusive of depreciation and amortization:
Data center and network services	49,023		(49,023		)	—
Cloud and hosting services	13,424		(13,424		)	—
INAP COLO			53,069			53,069
INAP CLOUD			9,378			9,378