Telx: The Interconnection Company
Tesh Durvasula proudly describes Telx as "the interconnection company." Durvasula, the chief marketing and Business Officer of Telx, acknowledges that his company may not have the visibility of the two public companies specializing in interconnections, Equinix (EQIX) and Switch and Data (SDXC). But Durvasula says Telx has more interconnections than either of its rivals, despite having a far smaller data center footprint.
Durvasula won’t give exact numbers for his company’s interconnections, citing Telx’ status as a private company. But he says Telx has more cross connects that the published numbers for Equinix (19,511) and Switch and Data (19,797), suggesting that Telx has more than 20,000 cross connects in a data center footprint of close to 400,000 square feet of data center space.
That interconnection density is a legacy of Telx’ role as the network clearinghouse at 60 Hudson Street, one of the premier carrier hotels in Manhattan, where it helped telecom carriers exchange traffic. In 2004 the company acquired 56 Marietta, the leading carrier hotel in Atlanta. In late 2006 Telx was bought by private equity firm GI Partners, and has since acquired the NYC Connect meet-me-room operations at 111 Eighth Avenue (New York’s other major carrier hotel) and also manages the meet-me-rooms at 10 facilities owned by Digital Realty Trust.
Having a new owner with deep pockets has accelerated the evolution of Telx beyond its historic base in the telecom industry. "Telx was traditionally a carrier-focused business when we were purely 60 Hudson Street," said Durvasula. "When we expanded into Atlanta we started to shift from an interconnection play into collocation, which made up a good portion of our revenue after 56 Marietta. It was an expansion into more of a national presence."
Posted by Rich Miller 
May 13, 2008 | Permalink | Newsletter
March 25, 2008
Telx Powers Low Latency Trading for 7Ticks
7Ticks, which provides managed hosting for financial trading, has expanded its infrastructure into Telx’s New York facility located at 111 8th Avenue. The expansion provides 7Ticks with low latency connectivity to its operations at the 350 East Cermak carrier hotel in Chicago, which has the quickest access available to the Chicago Mercantile Exchange (CME) matching engines that execute electronic bid and ask transactions for the exchange.
7Ticks is based in Chicago and designs low latency trading solutions for financial transactions, including managed high-speed access to the CME and other leading international exchanges. The company also provides direct access to the Intercontinental Exchange (ICE), a global commodity and financial products marketplace, including the world’s leading electronic energy markets and soft-commodity exchange.
Posted by Rich Miller March 25, 2008 | Permalink | Newsletter
February 13, 2008
Telx Expansion May Boost Dallas Building
The Dallas data center market continues to see brisk activity. On Tuesday Telx opened its new facility at 8435 Stemmons Freeway in Dallas, where it has leased 25,000 square feet of space. The building's owner, Diversified Capital, is hoping that the presence of Telx will attract additional data center tenants to fill space vacated by First American Financial Corp.
Telx will link the new facility with its Meet Me Room at the Univision Tower Building (2323 Bryan Street), enabling customers in the new Stemmons site to access more than 70 networks. "This gives us the foundation to do further leasing," Bruce Stern, vice president of business development at Diversified Capital, told the Dallas Morning News. "It fills up the most valuable space in the building, and it's data center space, which is much more lucrative than office space."
Yesterday we noted that Unified Infrastructure Services has been aggressively buying up data center space in the Dallas market, including the carrier hotel at 2020 Live Oak. Dataside recently announced plans to build a fifth data center in the Dallas market, while Databank, Securus, Skyrise Properties and Behringer Harvard have all acquired data center space in Dallas since last summer.
Posted by Rich Miller February 13, 2008 | Permalink | Newsletter
December 18, 2007
Telx Acquires Data Center Space in Dallas
Interconnection specialist Telx has acquired 21,000 square feet of space at 8435 Stemmons Freeway in Dallas, the company said. The deal follows the company's expansion in its existing Dallas facility at the Univision Tower Building at 2323 Bryan Street, where Telx doubled its presence to more than 11,000 square feet of space. Telx will link the two facilities, enabling customers in the new Stemmons site to access more than 70 networks through the Telx Meet Me Room at 2323 Bryan.
"2007 has been a year of phenomenal growth for Telx as well as a year of significant integration," said Eric Shepcaro, Chairman and CEO of Telx. "We acquired 10 network rich exchange facilities from Digital Realty Trust and one from NYC Connect, providing us a presence at 111 8th Avenue in New York. Now, with 14 facilities in 9 markets, the time is right to continue our expansion and growth. Stemmons will also provide us the opportunity to deploy our annex strategy of new Telx ColoXchange Centers that will provide an array of Telx connectivity products and services."
Posted by Rich Miller December 18, 2007 | Permalink | Newsletter
October 11, 2007
Telx Names Durvasula Chief Business Officer
Telx, which operates Meet Me Room and interconnection facilities, has appointed industry veteran Tesh Durvasula as Chief Marketing and Business Officer. Durvasula will lead corporate development and all marketing efforts for Telx, which said the appointment rounds out the executive management team in the "new" Telx , which has grown from 2 to 13 facilities in the past nine months. Among the facilities acquired by Telx was NYC Connect at 111 Eighth Avenue, where Durvasula was co-founder and Chief Operating Officer.
"As we position ourselves for continued growth into 2008, Tesh has proven to be an invaluable team member and manager who has lead the integration of NYC Connect into our Telx family efficiently and effectively," said Eric Shepcaro, Chairman and Chief Executive Officer of Telx. "I am delighted to appoint Tesh as our new Chief Marketing and Business Officer and am confident that our brand, market position and product development will continue to meet the growing demands of our customers."
Posted by Rich Miller October 11, 2007 | Permalink | Newsletter
September 06, 2007
Telx Network Powers WV Expansion
When New York interconnection specialist Telx was acquired by GI Partners late last year, chief strategy office Hunter Newby said the deal would "position Telx at the vanguard of change in the network interconnection space." Within days, Telx announced a deal to manage meet-me-rooms in 10 major Internet gateways owned by Digital Realty Trust (DLR), the large technology REIT that spun off from GI Partners. In March Telx acquired the meet-me-room at 111 Eighth Avenue, which along with Telx' home base at 60 Hudson Street gave the company network hubs in New York's two largest carrier hotels.
The series of deals created a network of connectivity hubs in major U.S. Internet markets, allowing Telx to offer a "one-stop shopping" option for companies seeking to rapidly deploy a national network across 12 markets. The benefits of this growth could be seen in this week's announcement that Nashville-based WV Fiber has used its colocation sites in Telx facilities to expand its network reach and access to connectivity and customers.
WV Fiber is a spinoff of Nashville-based telecom equipment vendor Wilhagan Ventures, which bought assets from Enron's bankruptcy to build a national fiber backbone. WV Fiber has POPs in Telx facilities in Atlanta, Chicago, Los Angeles, New York and San Jose, providing it access to 500 Telx customers.
Posted by Rich Miller September 06, 2007 | Permalink | Newsletter
June 14, 2007
More Space for Telx in Dallas, 60 Hudson
Telx is expanding its interconnection facilities at two major carrier hotels, 2323 Bryan Street (Univision Center) in Dallas and 60 Hudson Street in New York City, the company said Wednesday. Telx said its space in Dallas would nearly double to 11,000 square feet, while it is adding 10,000 square feet of space on the 11th floor at 60 Hudson Street. The expansion gives Telx 60,000 square feet of interconnection space at 60 Hudson, one of New York's leading carrier hotels and the home base for Telx.
"We are seeing a tremendous amount of growth and demand for interconnection facility space, both from enterprise businesses and service providers," said Eric Shepcaro, CEO and Chairman of Telx. "The explosive growth of Ethernet and IP services is driving huge demand for physical connections between networks."
Posted by Rich Miller June 14, 2007 | Permalink | Newsletter
March 23, 2007
Telx Buys 111 Eighth Meet-Me-Room
Telx has acquired the meet-me-room business of NYC Connect at 111 Eighth Avenue, one of New York's premier carrier hotel facilities, the companies said yesterday. The deal expands the national network of meet-me-rooms for Telx, which already operates an interconnection facility at 60 Hudson Street, Manhattan's other leading carrier hotel property. Last November Telx was acquired by GI Partners, and then signed agreements to lease and exclusively manage the Meet-Me-Rooms of 10 Digital Realty Trust facilities in the U.S. in addition to facilities Telx owns at 60 Hudson and the 56 Marietta carrier hotel in Atlanta.
"Defining the standard for Meet-Me-Room operations has been a longstanding mission of Telx, so owning the Meet Me Room in a premier facility like 111 Eighth Avenue in a market with one of the strongest demands for interconnection services in the world is very positive for us," said Telx CEO Eric Shepcaro, an industry veteran with experience at AT&T, Digital Island and Sprint who on Feb. 27 was appointed to lead Telx.
Posted by Rich Miller March 23, 2007 | Permalink | Newsletter
March 22, 2007
Digital Realty Buys Lease at 111 Eighth
Digital Realty Trust, Inc. (DLR) continues to expand its footprint in Manhattan's premier carrier hotels, announcing tonight that it has acquired data center space at 111 Eighth Avenue. Digital Realty said it paid $24.5 million to buy a 33,700 square feet lease from NYC Connect, including two suites located on the third and seventh floors of the building that are 94 percent leased.
"The acquisition of the NYC Connect data centers represents an opportunity for us to expand our presence to over 120,000 square feet of mission critical datacenter space in 111 8th Avenue, a premier hub for Internet connectivity for the northeastern U.S. and one of the premier Internet gateway and corporate datacenter facilities in the world," commented Michael Foust, CEO of Digital Realty Trust. In October Digital Realty bought AboveNet's data center at 111 Eighth as part of a larger facilities deal with AboveNet.
Note: An earlier version of this story contained incorrect references to the 111 Eighth Meet-Me-Room business, which was separately acquired by Telx.
Posted by Rich Miller March 22, 2007 | Permalink | Newsletter
November 22, 2006
GI Partners Buys telx, 56 Marietta
Network service provider telx has been bought by private equity firm GI Partners, the two companies announced today. The deal gives GI Partners a major interconnection hub in 60 Hudson Street, one of Manhattan's most wired carrier hotel buildings. Also included in the deal is 56 Marietta Street, the premier carrier hotel in the Atlanta market. Terms of the transaction were not disclosed.
telx serves as a marketplace for network services, and actively promotes business opportunities between its carrier and enterprise customers. More than 250 networks physically converge within its 60 Hudson Street facility, while 150 networks meet at 56 Marietta in Atlanta.
GI Partners operates Server Holdings, which includes dedicated hosting providers The Planet and EV1Servers, which it purchased in May. It founded and then spun off Digital Realty Trust, the leading landlord for technology properties in North America. In July GI Partners raised $1.45 billion in capital for additional acquisitions.
"telx's business model and prior achievements are impressive, and we are very excited about their vision and prospects," said Eric Harrison, Managing Director of GI Partners. "We believe that telx is poised to revolutionize the industry and will continue to create significant value for shareholders."
telx General counsel J. Todd Raymond has been named President and Interim Chief Executive Officer. Founder and former CEO Rory Cutaia will serve as a consultant providing strategic advice.
Posted by Rich Miller November 22, 2006 | Permalink | Newsletter
September 08, 2006
Telx Expands at 60 Hudson Street in NYC
Interconnection specialist tel(x) has expanded into an additional 13,000 square feet of space at 60 Hudson Street, a premier carrier hotel in New York. The additional space is adjacent to the company's exisiting facility on the 9th floor of 60 Hudson, and will be used to create an interconnection center for enterprise customers. By locating equipment at tel(x), corporate customers can quickly establish peering relationships that can reduce costs in their voice and data networks.
tel(x) says the Enterprise Peering Facility is being established to meet increased demand from enterprise customers shifting from legacy telco technologies to Internet Protocol (IP), a shift being driven by adoption of VoIP.
"Bringing the benefits of such a peering facility to the enterprise community will foster the growth of a competitive marketplace for companies who traditionally have had limited power over terms, rates and delivery times with respect to their voice and data requirements," said Hunter Newby, Chief Strategy Officer for tel(x). "At the same time, the creation of this facility provides a venue where wholesale voice and data providers can easily locate, market to and retain well-established, large corporate customers who are clearly the focus in today's competitive marketplace."
Posted by Rich Miller September 08, 2006 | Permalink | Newsletter
June 07, 2006
Record Revenue, Earnings for telx
telx, which operates interconnection facilities in New York and Atlanta, announced recently that it posted a record-breaking first quarter of 2006 in both revenue and earnings. Based upon March and April’s results, the company expects the second quarter to be even stronger, and telx management may revise its projections upwards.
"The growth has been absolutely astounding, and by all indications is expected to continue into the foreseeable future, said Rory J. Cutaia, CEO of telx. May was a record-breaking month for telx team, according to Hunter Newby, Chief Strategy Officer. The company, which is privately held, didn't provide revenue figures. telx operates a major interconnection facility at the 60 Hudson street carrier hotel in Manhattan, and owns 56 Marietta, one of the premier carrier hotels in Atlanta.
Posted by Rich Miller June 07, 2006 | Permalink | Newsletter
ALL STORIES FROM THIS CATEGORY: