CHANGE IN ORGANIZATIONAL STRUCTURE

During the three months ended March 31, 2018, 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 note 11 “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 costs of sales and services, operating loss or net loss, are summarized as follows (in thousands):



	Three Months Ended March 31, 2017
	As Previously Reported		Reclassification			As Reported
Revenues:
INAP COLO	$	53,339	$	(53,339	)	$	—
INAP CLOUD	18,794		(18,794		)	—
INAP US	—		55,461			55,461
INAP INTL	—		16,672			16,672
Costs of sales and services, exclusive of depreciation and amortization:
INAP COLO	24,806		(24,806		)	—
INAP CLOUD	4,239		(4,239		)	—
INAP US	—		23,547			23,547
INAP INTL	—		5,498			5,498

Our services, which are included within both our reportable segments, are described as follows:

Colocation

Colocation involves providing physical space within data centers and associated services such as power, interconnection, environmental controls, monitoring and security while allowing our customers to deploy and manage their servers, storage and other equipment in our secure data centers. We design the data center infrastructure, procure the capital equipment, deploy the infrastructure and are responsible for the operation and maintenance of the facility.

Cloud

Cloud services involve providing compute resources and storage services on demand via an integrated platform that includes our automated bare metal solutions. We offer our next generation cloud platforms in our high density colocation facilities and utilize the INAP performance IP for low latency connectivity.

Network

Network services includes our patented Performance IP™ service, content delivery network services, IP routing hardware and software platform. By intelligently routing traffic with redundant, high-speed connections over multiple, major Internet backbones, our IP connectivity provides high-performance and highly-reliable delivery of content, applications and communications to end users globally. We deliver our IP connectivity through 97 POPs around the world.