Roundup: Level 3, Limelight, Akamai, Hitachi

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It’s been a busy news week for the data center industry, and we wanted to catch up on a few stories of note. Here’s a roundup:

  • Shares of Level 3 (LVLT) gained 22.7 percent Wednesday after the company’s earnings beat Wall Street’s expectations. Level 3 reported revenue of $1.09 billion, while analysts polled by Thomson Financial expected revenue of $1.06 billion. Level 3 rose 54 cents to $2.91 a share.
  • Will the patent infringement lawsuit between Akamai (AKAM) and Limelight (LLNW) open the door to telecom companies gaining a larger foothold in the content delivery business? Dan Rayburn says “it is just a matter of when Limelight will be acquired by a telco and not if.” AT&T (T) and BT have been the leading suitors, and Rayburn believes Limelight has been offered $8 a share (the stock closed Wednesday at $2.91). He says there is a “good chance” Akamai will win a permanent injunction against Limelight, which would then seek and receive a stay that would prolong the case for at least another year – perhaps nudging the number two CDN into the arms of a telco suitor.
  • Hitachi Data Systems announced that it will be adding expansion space to its Yokohama, Japan data center that will be the “greenest data center ever.” The Register has a review of the project, which is featured in a photo set on Flickr.

About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.