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 September 30, 2016
	As Previously Reported		Reclassification			As Reported
Revenues:
Data center and network services	$	49,767	$	(49,767	)	$	—
Cloud and hosting services	24,173		(24,173		)	—
INAP COLO	—		54,998			54,998
INAP CLOUD	—		18,942			18,942
Direct costs of sales and services, exclusive of depreciation and amortization:
Data center and network services	25,042		(25,042		)	—
Cloud and hosting services	6,520		(6,520		)	—
INAP COLO	—		26,676			26,676
INAP CLOUD	—		4,886			4,886



	Nine Months Ended September 30, 2016
	As Previously Reported		Reclassification			As Reported
Revenues:
Data center and network services	$	151,099	$	(151,099	)	$	—
Cloud and hosting services	73,081		(73,081		)	—
INAP COLO	—		166,707			166,707
INAP CLOUD	—		57,473			57,473
Direct costs of sales and services, exclusive of depreciation and amortization:
Data center and network services	74,065		(74,065		)	—
Cloud and hosting services	19,944		(19,944		)	—
INAP COLO	$	—	79,745			79,745
INAP CLOUD	$	—	14,264			14,264