Along with many of its customers, Exodus experienced the bursting of the dot-com bubble and declared Chapter 11 bankruptcy in late 2001.

The tape backup portion of the DataVault business unit was acquired by Sanrise Inc.[3] Exodus Communications built and operated the first truly global anycast Domain Name System in 1999, using its globally deployed BGP autonomous system.

In September 2000, the company bought GlobalCenter, Global Crossing's web hosting unit, for $6.5 billion in stock.

[6] In January 2003, Cable and Wireless Japan sold Global OnLine Japan to Japanese VoIP operator Fusion Communications,[7] merging its existing consumer Internet and VoIP efforts to create Fusion Network Services.

[8] In March 2004, Cable and Wireless America, including the Exodus assets, were acquired by SAVVIS.