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Hurricane Electric Expands Colo Space
Colocation provider Hurricane Electric says it has completed the second phase build out of its new colocation facility located in Silicon Valley, doubling the capacity of the six-month old facility at 48233 Warm Springs Blvd., in Fremont, Calif.
Hurricane Electric said the demand for colocation space at the new facility was so strong that the first phase sold out almost immediately, necessitating a second phase build out earlier than initially planned. The expansion adds five additional private suites, several hundred cabinets, and has more than doubled the capacity originally available.
"Business is booming; the response to our new colocation facility has been overwhelmingly positive and demand for colocation space is very strong," said Mike Leber, president of Hurricane Electric. "We were astonished to see how fast initial capacity sold out at our new facility and are excited to have a 208,000-square-foot facility that will allow us ample room to increase capacity as future demand continues to grow."
October 30, 2006
Will "GooTube" Hurt Data Center Demand?
The ripples from the Google-YouTube acquisition continue, and a blog post tonight by Mark Cuban will likely prompt further discussion of the deal and its impact. Cuban's post, titled "Some Intimate Details on the Google-YouTube Deal", shares what purports to be an insider's account of the negotiations and strategic concerns of the major players. Even the author, who posted it anonymously on an industry mailing list, acknowledges that the account contains both fact and informed speculation. It asserts that Google is worried about YouTube's audience eroding as copyrighted material is removed (see Comedy Central's takedown notice for an early example). To prevent this, the account asserts, Google asked other parties to "pile some lawsuits on competitors to slow them down and lock in Youtube's position." An excerpt:
Universal obliged and sued two capable YouTube clones, Bolt and Grouper. This has several effects. First, it puts enormous pressure on all the other video sites to clamp down on the laissez-faire content posting that is prevalent. If Google is agreeing to remove unauthorized content they want the rest of the industry doing the same thing. Secondly it shuts off the flow of venture capital investments into video firms. Without capital these firms can't build the data centers and pay for the bandwidth required for these upside down businesses.It's important to note that Cuban has an axe to grind on this issue, as he was already on record with his belief that YouTube is a house of cards supported by copyright infringement, and was clearly taken aback when Google paid $1.65 billion for it. "I can't say its 100 pct accurate," writes Cuban, the billionaire investor and owner of the Dallas Mavericks. "I dont know. But it rings true, and I trust the source."
So take it with a grain of salt. It will be interesting to see whether denials (or non-denials) emerge on the key points raised by this account.
Posted by Rich Miller 
October 30, 2006 | Permalink | Newsletter
Schneider Buys APC for $6.1 Billion
American Power Conversion (APC), one of the leading equipment suppliers to the data center industry, has agreed to be acquired by Schneider Electric SA for $6.1 billion, the companies said today. Schneider's offer of $31 a share is a 30 percent premium to where APC shares were trading last week. Schneider, which is based in Paris, will sell bonds and $1.5 billion in new stock to help fund the deal.
"This transaction provides APC stockholders with an immediate and substantial cash premium for their investment in the company," said Rob Johnson, APC's president and chief executive officer. "Upon completion of the transaction, APC will become part of Schneider Electric, with greater resources to accomplish our long-term plans, which will be favorable for our employees, customers, business partners and suppliers worldwide. Both companies have a dedication to innovation and customer service that make our combined enterprise an even stronger, more competitive player in the industry."
Johnson was named CEO on August 15 after APC announced that Rodger Dowdell, Jr. was retiring as President and CEO, effective immediately. On Sept. 11 a large shareholder, Matrix Asset Advisors, urged the board to sell the company. "We believe that a change in ownership structure, either through a private equity sale or a sale to a strategic buyer, is the best way to reap the efforts of your franchise development," said Matrix in the letter, according to a Reuters summary. On September 22, the company announced that it was laying off 330 employees.
Posted by Rich Miller October 30, 2006 | Permalink | Newsletter
October 29, 2006
Windley: Mobile Data Centers Matter
Phil Windley, who blogs at ZDNet and is executive producer of IT Conversations, has some interesting observations about possible uses for mobile data centers such as Sun's Project Blackbox:
When I was Utah's CIO I realized that latency, not bandwidth, was the largest threat to the kinds of services that government and others might want to roll out in the future. We worked hard, with little success unfortunately, to establish regional peering points in Utah. Mobile data centers can help overcome this limitation, at least for the big players. If Google wants to deliver video worldwide, putting mobile data centers in strategic locations will vastly improve the quality of service that their customers see.Windley also thinks mobile centers could be an asset for Internet companies concerned about Net neutrality. "I don't think this can counter every threat, but dropping mobile data centers in strategic locations can route around particularly obnoxious networks," Phil writes.
Posted by Rich Miller October 29, 2006 | Permalink | Newsletter
October 27, 2006
Hosted Solutions Acquires Boston Datacenters
Regional data center services provider Hosted Solutions will expand into New England by acquiring Boston Datacenters, the company said this week. The acquisition will be the first foray outside North Carolina for Hosted Solutions, which was previously known as Springboard Managed Hosting and has focused its business in Research Triangle.
The move gives Hosted Solutions four data centers, including North Carolina facilities in Cary, Raleigh and Charlotte. The deal was announced at a networking event in Charlotte. Gary McAuliffe, general manager of the Charlotte office, will soon move to Boston to run the former Boston Datacenters operation as vice president and general manager. Hosted Solutions, which is privately held, did not disclose financial details of the deal.
"The technology community in Boston is really expanding," McAuliffe told LocalTechWire. "They are really coming back (from the "dot com" crash). We’re excited to be entering that market."
Posted by Rich Miller October 27, 2006 | Permalink | Newsletter
Data Center Costs and Moore's Law
Computerworld has an interview with Ken Brill, founder and executive director of The Uptime Institute Inc., which developed the tier system for rating data centers and is an important industry resource. The discussion focused on the cost of building and managing data centers, and Brill cites "the economic breakdown of Moore’s Law" as the primary threat to the industry. Here's an excerpt from Brill:
"Historically, facilities costs have been 3% of IT’s total budget, but the economic breakdown of Moore’s Law means that facilities costs [including power consumption] are going to be climbing to 5%, 10% and higher. That will change the economics of IT. The business question becomes, Will IT get more money so the increasing portion of the budget that facilities represents doesn’t crowd out other IT initiatives? Or will the increasing facilities [costs] result in curtailing other things?"Brill says this will force a more critical buying process, with energy costs factored into the return on investment. He also said companies may need to be more conservative about the operational cost of "dead servers" that are underutilized but kept running.
Posted by Rich Miller October 27, 2006 | Permalink | Newsletter
October 26, 2006
Equinix Cabinet Capacity: 52 Percent
Yesterday was a busy day, and I didn't get a chance to blog about Equinix' third-quarter earnings. The numbers and projections were solid and roughly in line with expectations. Beyond the dollars and sense, Equinix included some interesting metrics on its data center occupancy:
Based on a total cabinet capacity of approximately 30,900, the number of cabinets billing at the end of the quarter was approximately 16,200, or 52%, up from approximately 15,400 the previous quarter. On a weighted average basis, the number of cabinets billing was approximately 16,200 representing a utilization rate of 52%.Equinix has a little more than half its cabinets filled, and yet is embarking on a huge expansion. What gives?
There are two trends at work here. Occupancy is almost certainly much higher than 52% in the markets where Equinix is expanding: Chicago, New York and Northern Virginia. Demand is very strong in these three areas, and Equinix isn't alone in believing that the demand in these markets can support a substantial amount of additional square footage.
Posted by Rich Miller October 26, 2006 | Permalink | Newsletter
Akamai: Lower Profits, Stronger Sales
Third quarter earnings at content distribution provider Akamai Technologies, Inc. (AKAM) were off sharply, due primarily to an extraordinary gain in same quarter last year. Revenue rose 47 percent to $111.5 million from $75.7 million and topped analysts' forecast for $108.8 million.
Net income was $14 million, or 8 cents per share, compared with $272.3 million, or $1.71 per share, a year earlier. Earnings per share were 2 cents above of the mean estimate of analysts surveyed by Thomson Financial. The 2005 results were inflated by a tax-related gain of $255.3 million. Akamai shares fell $2.13 to $47.70 in after-hours trading.
Posted by Rich Miller October 26, 2006 | Permalink | Newsletter
Will You Be 'Data Center Man' for Halloween?
Network World magazine conducted an Alpha Geek Costume Contest for Halloween. The top prize went to Mark Madden's Subnet Mask, but earning honorable mention was Dan Richfield, president and CEO of Easy CGI, for his Data Center Man costume. Perhaps you feel like this guy at the end of long shift.
Posted by Rich Miller October 26, 2006 | Permalink | Newsletter
October 25, 2006
Equinix Announces CEO Succession Plan
Equinix, Inc. (EQIX) said this afternoon that Peter Van Camp will transition from his role as Chairman and CEO to Executive Chairman during the next year. Van Camp's change of roles stems from his desire to spend more time with his wife, a three-year breast cancer survivor who is recovering from a recent bout with the disease.
Equinix said it will start an external search for a new CEO, and that Van Camp will continue to be "fully engaged as CEO" until the new CEO is appointed. Van Camp plans to remain involved in Equinix as executive chairman, developing company strategy while maintaining key relationships with investors and customers.
"I’ve made an important decision for Equinix and my wife and me regarding my future role with the company," said Van Camp. "The strength of the Equinix senior management team, combined with the company’s market position and momentum, gives me a great deal of confidence that we will successfully and seamlessly transition the leadership of the company to a new CEO who will continue to build on Equinix’s success."
Posted by Rich Miller October 25, 2006 | Permalink | Newsletter
NY Times: A 'Comeback Boom' for Data Centers
The headline on this morning's New York Times story pretty much says it all: Cultivating Server Farms: A Comeback Boom for the Operators of Data Centers. The thrust of the story won't be news to DCK readers and others who have tracked trends in the industry. But the article by Kristina Shevory, which includes comments from Internap, Equinix and Digital Realty Trust, offers a concise summary of how much has changed. An excerpt:
The good times are back for data center operators. Over the next 10 years, more than half of all data center operators expect to expand, according to a 2006 survey by Afcom, an association of data center managers in Orange, Calif. “It’s blown up again and it’s a whole new world,” said Jill Eckhaus, president of Afcom.It's quite a contrast to the "nuclear winter" of 2002-03, when the industry was awash in surplus data centers and equipment from a wave of bankruptcies by dot-coms and telecom companies.
Posted by Rich Miller October 25, 2006 | Permalink | Newsletter
MORE STORIES FROM THIS MONTH:
- Hurricane Electric Expands Colo Space
- Will "GooTube" Hurt Data Center Demand?
- Schneider Buys APC for $6.1 Billion
- Windley: Mobile Data Centers Matter
- Hosted Solutions Acquires Boston Datacenters
- Data Center Costs and Moore's Law
- Equinix Cabinet Capacity: 52 Percent
- Akamai: Lower Profits, Stronger Sales
- Will You Be 'Data Center Man' for Halloween?
- Equinix Announces CEO Succession Plan
- NY Times: A 'Comeback Boom' for Data Centers
- Generator Backlogs Cause Delivery Delays
- Report: SAVVIS Shopping Its CDN Network
- Cringley Weighs in on Blackbox
- HP Tracks Servers With RFID Chips
- Sun's Blackbox: Game-Changer or Niche Product?
- eHarmony Expands Presence at Equinix
- SAVVIS to Host Entellium CRM Suite
- Level 3 Buys Broadwing for $1.4 Billion
- Sun Unveils 'Data Center In A Box'
- What is Jonathan Schwartz Talking About?
- SalesForce Expands SaaS Hosting with Apex
- DCI Buys Huge Denver Data Center
- Google-YouTube: Bad News for Limelight?
- Google: No Dark Mystery About Its Dark Fiber
- Internap to Buy VitalStream for $217 Million