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ViaWest Reports Stronger Colo Demand

Denver-based colocation provider ViaWest says strong demand helped its revenue grow 53 percent in 2006.

ViaWest, a growing Denver-based colocation and managed hosting provider, said today that it experienced double-digit revenue growth and a 45 percent jump in increased existing customer demand in 2006. While not providing the underlying financial numbers, ViaWest said 2006 was "its best year financially in the company's history." The company also said it expects to continue expanding into new areas after entering the Portland, Ore. market last year through its acquisition of Fortix.

ViaWest said its 2006 revenue was up 53 percent from 2005, with the majority of that growth driven by new customers. "We have watched demand for managed hosting and colocation services steadily increase, particularly among small and mid-size businesses, as companies realize the need to invest in reliable secure hosting, on-demand support and data recovery options," said Roy Dimoff, CEO and co-founder of ViaWest.

"This heightened demand helped ViaWest outperform our 2006 growth targets," Dimoff added. "Last year, we expanded into Portland by purchasing a Tier-1 datacenter, signed more than 100 new customers and realized a 56 percent increase in revenue for colocation and hosting services in Colorado. Looking ahead to 2007, we are on track to further accelerate our success both organically and through additional expansion opportunities in new markets."

ViaWest said its expansion is driven by opportunities, rather than weakness in its core Colorado market. In 2006, ViaWest grew its revenue in Colorado for colocation and managed hosting services by 56 percent over 2005, the company said. Demand from customers in Colorado opting for additional services increased by 100 percent.

ViaWest said it is benefiting from the national growth trend for managed hosting and colocation services. According to a recent study by IDC, a leading analyst firm, the U.S. Web hosting services market was $6.9 billion in 2005, and is expected to increase at a compound annual growth rate of 16 percent over the next five years, reaching $14.5 billion in 2010.