Insiders say WeWork’s IT is a patchwork of cheap devices and band-aid fixes that will take millions to fix
WeWork’s technology infrastructure is due for an expensive overhaul, current and former IT employees told Business Insider.
At WeWork’s start, IT was led by a 16-year-old who dropped out of high school to join the company. WeWork later sued him, alleging fraudulent misrepresentation and other claims in a case the parties ultimately agreed to dismiss.
Redoing what some current and former WeWork IT staff said was outdated and sub-standard infrastructure could cost tens of millions of dollars – just as the company’s looking to drastically cut costs.
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Before its initial public offering collapsed, office leasing firm WeWork tried to position itself as a tech company.
But its buildings are loaded with technology that needs to be ripped out and replaced, three current and former WeWork IT employees told Business Insider.
If the company doesn’t upgrade, it’s possible that tenants – or “members” in WeWork parlance – could be unwittingly sharing their data with hackers who gain access to the network through outdated or sub-standard tech, the sources said.
Two sources broadly estimated this is a project that could cost the company tens of millions of dollars.
“This isn’t a million, two, three million dollar project. This is tens of millions,” one of the employees told Business Insider.
A WeWork spokesperson, who declined to comment on specifics, told us: “At WeWork, we continue to make significant investments in IT and technology to improve our systems and the experience for members. This includes investing in new services and dedicated high-speed internet connections for our growing set of large enterprise customers.”
Some of the upgrades are simply a product of WeWork’s success. Older buildings need to be rewired to support faster, more secure networks for a full load of tenants, all of whom are pounding on the network.
In other cases, the work is …read more
Source:: Business Insider