| Dedicated Server Provider, Layered Technologies, Debuts New Hosting Packages
Plano, Texas - (The Hosting News) - May 15, 2008 - Provider of ''on demand'' IT infrastructure, Layered Technologies, is offering a new range of servers, designed to meet the needs of the enterprise market, including HP servers configured with the Quad-Core AMD Opteron.
Also included in the offering, is the Intel Xeon CPU, along with the ability to hold up to 12 hot swappable hard drives. These new packages represent a huge increase in the price-for-performance value equation for clients seeking highly expandable, leading edge computing platforms.
New server packages include the latest HP chassis, newly released AMD Barcelona and Intel Harpertown / Clovertown processors, a minimum of 4GB of RAM, and 500 GB or larger hard drives. Each chassis can currently accommodate up to 12TB of storage and 32GB of RAM.
Todd Abrams, President and COO of Layered Technologies explained, ''Layered Technologies has a history of leading the market in next-generation technology and we'll continue to seek ways to maximize performance, optimize virtualization, increase levels of utilization and enable greater energy efficiency. These new name-brand server offerings are unrivaled and give our customers greater choices and unbeatable value.''
With clients in more than 120 countries, Layered Technologies custom technology solutions allow both large and small customers to rapidly deploy on-demand hosting and utility computing services, providing all the controls of collocation without the start up costs, capital investments, long term contracts and associated challenges. By partnering with Layered Technologies, companies are able to achieve ROI quickly via reduced capital investment, total cost of ownership (TCO), labor reduction, training and floor space. Layered Technologies can have a company up and running in days versus months.
Recently, it was announced that the Chicago based managed hosting company, FastServers.net, will be acquired by Layered Technologies as well. The acquisition will combine the expertise of FastServers.net in managed dedicated hosting with Layered Technologies' leading Grid and unmanaged offerings. The combination of Layered Technologies and FastServers will offer a new range of superior services significantly benefiting customers.
Layered Technologies will begin immediate integration of the two companies' operations, product development, distribution and customer support organizations to ensure a smooth transition and immediate value for customers, employees and partners. Combined, the company will serve over 6,000 clients.
Layered Technologies enables customers to forego capital expenses and save on operating costs while focusing on core business issues. Clients range from leading-edge Web 2.0 startups, successful mid-sized enterprises and some the world's largest consultancy and integration firms.
Based in Frisco Texas, Layered Technologies, Inc. is one of the five largest global providers of on-demand hosting and utility computing solutions, providing dedicated, partially managed server hosting solutions primarily for the small and medium-sized enterprise SME market. They provide customers with the highest quality technology, infrastructure and support services that enable them to operate servers at secure Tier III/IV data centers, while saving them the capital and operating costs typically associated with purchasing and maintaining their own servers at co-location facilities. Layered Technologies servers and associated network facilities are used by customers to host a variety of Internet-enabled applications, including content and e-commerce Web sites, software as a service (''SaaS'') offerings, online multiplayer games, shared Web site hosting services, and streaming multimedia content distribution and delivery, among other applications.
For more information about Layered Technologies, please visit: www.layeredtech.com.
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| The Planet Web Hosting Firm, Upgrades Network Operations Center
Houston, Texas - (The Hosting News) - May 15, 2008 - Privately held dedicated web hosting company, The Planet, has upgraded and expanded its Network Operations Center (NOC), through a Cisco Certified Network Associate (CCNA) designation requirement.
All employees who work in the company's NOC are required to hold the CCNA, and the staff is now 100 percent certified. Every NOC technician has earned this complex designation, which tests the skills required to install, configure, operate and troubleshoot routed and switched networks. Many on the team have earned even more senior Cisco certifications.
Created by Cisco Systems Inc., CCNA is the industry-recognized standard of expertise for IT network professionals. The rigorous certification requires knowledge of core network functions, including the verification of remote sites in a Wide Area Network (WAN), knowledge of various network types and the basic mitigation of security threats. Additional skills tested include the implementation of Local Area Networks (LAN) and an understanding of wireless networking concepts.
Stan Barter, Vice President of Network Operations at The Planet noted, ''Customers tell us that they come to The Planet to host their IT infrastructures based on the quality of our network and our six world-class data centers. The NOC is the nerve center for our company, and its primary role is to ensure the entire network infrastructure functions at its highest level of capability. Cisco is the recognized market leader in IT and network knowledge, so we certify each engineer to their standards, which offer an excellent career path for advancement in our company.''
Currently, there are open positions in The Planet NOC for those with CCNA qualifications. For more information on careers at The Planet, visit www.theplanet.com/about-us/careers.asp.
Earlier this month, The Planet unveiled six new promotions, including savings of up to 26 percent on its two Check Point solutions, as the company's first-ever firewall discount.
The following promotions continue through May 31, 2008, or while promotional supplies last:
- Firewall Upgrades: The Check Point X16, formerly priced at $89 per month, is now available for $69, a 22 percent savings. The Check Point XU is now available for $139 per month - reduced from $189 per month - a savings of 26 percent.
- Double Down Select: This promotion provides customers the choice to double their base bandwidth, hard disk or RAM for free on new orders of the Kentsfield SATA or the Dual Xeon 2.8 IDE.
- Dual Xeon 2.4 SCSI: Now priced at $143 per month - down from $219 - customers can take advantage of a 35 percent savings on this popular server.
- Dedicated Backup Servers: For customers looking for special pricing on backup servers, the company is offering savings ranging from 13 percent to 29 percent on 500GB to 6TB servers.
- Component Upgrades: Existing customers can take advantage of disk space, additional bandwidth and backup at 50 percent off current prices.
Ultimately, The Planet endeavors to provide:
- High levels of network capacity and speed to deliver peak performance
- Instant scalability to handle even the largest spikes in network traffic
- Parallel, redundant, multi-tiered network routing and switching architecture to assure reliability and stability
- Multiple layer network security that prevents Delayed Denial of Service (DDOS) attacks from harming businesses
- Knowledgeable experts with a passion for excellence and a commitment to operate the best networks in the business
The Planet is a leading provider of On Demand IT Infrastructure solutions, hosting over 22,000 small and medium size businesses and 6.7 million web sites worldwide, using the best choice of servers, software tools and support, backed by enhanced facilities and network connectivity.
For more information about The Planet, please visit: www.theplanet.com.
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| Data Center Provider, Aperture, Chosen for Defense Information Systems Agency
Stamford, Connecticut - (The Hosting News) - May 15, 2008 - Provider of software for managing the physical infrastructure of data centers, Aperture Technologies, Inc., has been selected to upgrade the Defense Information Systems Agency (DISA).
Engaged for the Aperture VISTA 500, the company will manage its data center environment. Aperture closed the deal in partnership with Global Technology Systems Consortium (GTSC), an IT provider to federal, state and local agencies. GTSC will work with DISA to implement the Aperture solution which will be rolled out in seven of DISA's largest data centers across the continental United States (CONUS).
Bill Clifford, President of Aperture Technologies remarked, ''This is unarguably a vitally important organization. To have Aperture managing federal data center resources speaks to our expertise and VISTA's role in providing much-needed visibility and control of today's complex data center environments.''
GTSC proposed Aperture VISTA as the solution that would enable the precise tracking and management of all physical devices throughout DISA's data centers and provide DISA with accurate information to track and forecast capacity, power, and space. The DISA Computing Services Division's (CSD) data centers are operated by the Infrastructure Management Division, which plans, engineers, and maintains fundamental elements required by the Defense Enterprise Computing centers (DECCs) to perform operational processing in support of customer applications.
DISA DECCs' needed a solution that would provide management capability as data centers continue to grow in size, complexity, and operational demand. This included the ability to integrate work flow and to assess the impact of high density computing devices, such as blade servers, that provide higher processing power within a more compact footprint.
The DISA Computing Services Division has been an Aperture customer since 1989, when it invested in Aperture's original product offering, an application that helped managers to position mainframes in the data centers. The Division is currently the DoD's number one provider of computing services spanning personnel, payroll, logistics, accounting, and medical records processing.
Global Technology Systems Consortium, Inc. Global Technology Systems Consortium, Inc. (GTSC), a minority-owned, SBA 8(a) company, was established in 1997 to provide quality software solutions and consulting services to help government and commercial clients manage the business and technology complexities of today's IT environment. GTSC is a reseller for several high profile vendors in addition to providing IT services in key areas such as high level management consulting, systems development, systems integration and engineering, systems performance optimization, and application programming.
Aperture provides software for managing the physical infrastructure of data centers. Aperture's solutions reduce operational risk and improve efficiency through the planning and management of data center resources and real-time monitoring of the environment. Aperture delivers best practice processes designed to enable organizations to take control of an increasingly complex physical infrastructure including equipment, space, power, cooling, network and storage. With over 20 years of experience, Aperture provides organizations with the information required to optimize their data center operations, delivering better services at the lowest cost. Aperture's customers include the world's largest companies, half of which are Fortune 1000 and Global 500 organizations.
To learn more, please visit: www.aperture.com.
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| Hosting Firm, NTT Com, Garners Network Services Award
Tokyo, Japan - (The Hosting News) - May 15, 2008 - NTT Communications Corporation (NTT Com), a network integrator, hosting and web services firm, has garnered a Platinum Award for an overall customer satisfaction ranking for its global data network services.
The company was recognized in the latest ''Voice of the Customer: Global Data VPN'' report from the 2008 Telemark Services of the United Kingdom. The company earned its first-ever Platinum Award by receiving the highest cumulative score overall.
Janet Watkin, Director at Telemark Services remarked, ''Telemark uses a Customer Satisfaction Index (CSI) to measure perceived operator performance. The overall CSI measures the customer experience of the total service provider's Data VPN offerings against a set of customer requirements. NTT Com occupies the number-one position, in the league table that compares eight global operators for overall customer satisfaction, because it captured the hearts and minds of Data VPN service users more successfully than its rivals, thereby scoring the highest overall CSI.''
Eight categories are measured by the survey: Indispensable to Customer, Top 10 Customer Priorities, Meeting Requirements, Pricing, Network Installation, Network Operation, Customer Support and Billing. NTT Com also was presented a Diamond Award for its top ranking in Meeting Requirements.
The report is based on the results of 749 interviews of IT managers of multinational companies.
Eight global operators were considered for awards: AT and T, BT, Cable and Wireless, Orange Business, T-Systems, Telefonica, Verizon Business and NTT Com, the only Asian candidate.
NTT Com holds the annual Arcstar Carrier Forum in Tokyo to gather partner telecoms from Asia and other regions and consider ways to upgrade private network-related services offered jointly under the Arcstar brand.
NTT Communications Corporation (NTT Com) provides information and communications technology (ICT) solutions worldwide with dedicated professionals stationed in 21 countries. Renowned as an IPv6 technology pioneer and managed service expert, NTT Com offers diverse high-quality IP, Web-based, and managed network solutions combining network management, security, ubiquitous, web portals/engines, and global services. Its world-class Tier 1 Internet backbone and secure closed networks with over 98,000 MPLS ports, combined with the networks of partner companies around the world, connect more than 200 countries. The company earned non-consolidated revenues exceeding one trillion yen (about 10 billion USD) in fiscal 2006 ended March 31, 2007. NTT Com started as a long-distance phone company in 1999 after the reorganization of the NTT Group, and is the wholly-owned subsidiary of NTT, one of the world's largest telecommunications companies. NTT is listed in Japan, London and New York stock exchanges.
For more details about Telemark Services, please visit: www.telemarkservices.com.
To learn more about NTT Com, please visit: www.ntt.com.
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| Easy CGI Web Hosting Provider, Expands Bandwidth, for Dedicated Windows Plans
Pearl River, New York - (The Hosting News) - May 14, 2008 - Web hosting firm, Easy CGI, has added two new dedicated Windows VPS plans, each with two terabytes of bandwidth, to its service portfolio. As a Microsoft partner, Easy CGI is increasing their number of dedicated server plans to five.
The range of plans are now capable of satisfying almost any dedicated hosting need - from those of small businesses, to those of large corporations.
The two new plans, Dedicated X10 and Dedicated X20, offer 100 and 200 gigabytes of disk space, respectively, two and four gigabytes of RAM, and two terabytes of bandwidth per month.
Dan Richfield, President of Easy CGI noted, ''Customers clearly want more server capability such as more disk storage and memory. We've always prided ourselves on being flexible about delivering what our customers want.''
Significantly, all of Easy CGI's dedicated VPS plans guarantee a limited number of virtual servers for each hardware node, something few other hosting services do. By limiting the number of virtualization clients, each client is assured of a greater share of processor time, RAM, and disk space.
Dedicated virtual private servers (VPS) are midway between shared web hosting services and dedicated hosting services. They create multiple, independent virtual servers, each with its own operating system and other software, on a single, partitioned physical server. VPS customers enjoy the benefits of private hosting, but a less cost than having their own dedicated server.
Mr. Richfield continued, ''These range of plans suits almost any company of any size that needs an economical alternative to dedicated hosting. Our plans offer a variety of options, coupled with cutting edge technology.''
Recently, EasyCGI has released its Window Server 2008, making it available to all hosting customers, to allow for flexibility, better performance and greater security, with hosting features designed to save programming time and ehance profitability.
Windows Server 2008 hosting features IIS 7 (Internet Information Services 7) which builds upon the previous IIS 6 release to provide enhanced security and performance for web hosters. With the new server platform, Easy CGI's hosting customers now have the flexibility to set up their hosting plans on Windows 2008, or continue with Windows 2003.
Microsoft has reported that IIS 7 is the most ambitious Microsoft Web server it has yet offered, having such features as FastCGI, which runs powerful PHP applications at high performance levels, and feature delegation, which lets users modify many website settings quickly through the web.config file. By offering more and better controls to developers, Windows Server 2008 enables them to develop applications locally, and then transfer them to the live server, without having to make updates to the server site.
Easy CGI has opted to provide Windows Server 2008 with IIS 7 for several reasons:
- Security - IIS 7 builds on the security features of IIS6 to offer the most secure web services ever offered by Microsoft.
- High-performance, reliable PHP hosting on the IIS web server using FastCGI.
- Cost-effective modular architecture - IIS 7.0 is already established in more than 40 feature modules that can be independently, quickly, and inexpensively installed.
- Improved functionality with IIS 7 Extensibility - The IIS7 core web server features use a new set of public web server APIs that all developers can use to extend, replace or add functionality to their web servers.
- Unified Configuration - Distributed configuration files can now be stored along with Web site or application content.
- LINQ - The LINQ (Language Integrated Query) Project is a set of extensions to the .NET Framework that include language-integrated query, set, and transform operations.
Easy CGI has been in the web hosting industry since 1994, offering technology, with cost effective, efficient solutions and customer service.
For more information about Easy CGI's VPS Windows 2008 offering, please visit: www.easycgi.com/services/dedicated+hosting+overview.html.
For more information about Easy CGI, please visit: www.easycgi.com.
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| Dedicated Server Web Host, Crucial Paradigm, Upgrades with Windows 2008 VPS
Dallas, Texas - (The Hosting News) - May 14, 2008 - Shared, reseller, dedicated and managed web hosting solutions firm, Crucial Paradigm, will be one of the first hosting providers to adopt the new Windows Server 2008 platform, through its Virtual Private Server (VPS) hosting plan offering.
Aaron Weller, Director of Crucial Paradigm noted, ''With this new line of plans, businesses or individuals wishing to start using Windows Server 2008 can take advantage of our easy-to-use, robust Virtual Private Server solutions that avoid the costs and limitations of a dedicated server. Virtual Private Servers allow our customers to completely configure and control their entire hosting environment, without being limited by container-based technology that prevents customization. Windows Server 2008 takes our Virtual Private Servers to the next level, and we are excited to introduce it to our customers.''
Released just three months ago, Windows Server 2008 is the latest version of Microsoft's enterprise operating system, sharing similar software architecture with Windows Vista. Windows Server 2008 allows hosting users to take advantage of native IPv6 support; a self-healing NTFS file system that corrects data corruption in real-time; the ability to install Windows 2008 Server Core, which is a significantly scaled down install without Windows Explorer; and other security and usability enhancements. Many of the new features will be ideal for Virtual Private Server users, who require an extra level of flexibility and security.
Crucial Paradigm will initially offer Windows Server 2008 on two plans, starting at $80/monthly for 35GB of data storage, 300GB of monthly data transfer, and 1GB of server RAM. Customers can choose from three versions of Windows Server 2008 - Standard, Enterprise, or Datacenter.
Founded in 2003, Crucial Paradigm operates in multiple locations around the world. The privately-owned, debt-free company offers a wide range of hosting solutions from Basic Web Hosting to Reseller Hosting, Virtual Dedicated Servers, Dedicated Servers and High Traffic Clusters, custom designed, based on each client's individual requirements.
To learn more about Windows Server 2008 Virtual Private Server plans from Crucial Paradigm, please visit: www.crucialp.com/virtual-dedicated-servers-vds/windows-2008-server.php.
For more information about Crucial Paradigm, please visit: www.crucialp.com.
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| Colocation Hosting Provider, Level 3, Reports Increased Revenue
Broomfileld, Colorado - (The Hosting News) - May 14, 2008 - Colocation, VoIP, and Internet backbone company, Level 3 Communications, has reported consolidated revenue of $1.09 billion for the first quarter 2008, an increase of 3 percent from $1.06 billion for the first quarter of 2007.
As of March 31, 2008, the company had cash and marketable securities of approximately $540 million. Fourth quarter 2007 consolidated revenue was $1.10 billion. The year over year growth rate for Core Communications Services revenue was 10 percent. The net loss for the first quarter 2008 was $181 million, or $0.12 per share, compared to a net loss of $647 million, or $0.44 per share for the first quarter 2007. In the first quarter 2007, excluding a loss on the extinguishment of debt of $427 million, the net loss would have been $220 million, or $0.15 per share. The net loss for the fourth quarter 2007 was $91 million, or $0.06 per share.
Consolidated Adjusted EBITDA(1) was $211 million in the first quarter 2008, an increase of 24 percent from $170 million for the first quarter 2007. Consolidated Adjusted EBITDA for the fourth quarter 2007 was $246 million.
James Q. Crowe, President and CEO of Level 3 noted, ''Over the last several quarters, a growing number of telecommunications industry participants have noted the growth in the demand for optical and IP services. We certainly benefited from that trend during the quarter, driven by growth in the delivery of video and other media over the Internet. Additionally, the pricing environment for our Core Communications Services continued to be positive.
''From an operational perspective, we believe we have substantially increased available installation capacity, which was previously a significant constraint on our ability to meet market demand for our services. With these operational improvements, we believe that we are on track to meet our two primary goals for 2008 - to reach free cash flow breakeven on a run rate basis during 2008, and to increase our sales and installations to rates that match customer demand for our services. With respect to the first goal, our performance has exceeded our earlier expectations and we expect to be free cash flow breakeven for the remaining three quarters of this year.''
Consolidated Adjusted EBITDA for the first quarter 2008 and 2007 excludes $23 million and $24 million in non-cash compensation expense and includes $7 million and $4 million of cash restructuring charges respectively.
Communications revenue for the first quarter 2008 was $1.07 billion, a 3 percent increase from $1.04 billion in the first quarter 2007. In the fourth quarter 2007, Communications revenue was $1.08 billion.
Core Communications Services revenue, which includes Core Network Services and Wholesale Voice Services, was $958 million in the first quarter 2008, an increase of 10 percent over $870 million in the first quarter 2007. Fourth quarter 2007 Core Communications Services revenue was $955 million.
Core Network Services revenue increased by 8 percent from the first quarter 2007, primarily from increased demand for IP and optical services across the business. Wholesale Voice Services revenue increased by 23 percent from the first quarter 2007, primarily due to growth from cable and wireless customers.
Other Communications Services revenue declined 39 percent to $51 million compared to $84 million in the first quarter 2007 as a result of expected declines in managed modem services. For the fourth quarter 2007, Other Communications Services revenue was $56 million.
SBC Contract Services revenue was $57 million in the first quarter 2008, a 31 percent decline compared to the year earlier quarter revenue of $83 million. Fourth quarter 2007 SBC Contract Services revenue was $73 million, which included a $16 million quality of service bonus, the last such bonus for which the company was eligible.
As previously disclosed, SBC announced its intention to migrate the services provided under the agreement to its own network facilities in accordance with terms previously negotiated by WilTel Communications, LLC (WilTel), a company subsequently acquired by Level 3. Under the terms of this agreement, SBC agreed to pay WilTel a minimum amount of gross margin regardless of the actual revenue generated under the contract. Accordingly, while the company expects future SBC Contract Services revenue will be difficult to predict, the gross margin contribution over time is fixed.
As of the end of the first quarter, there was approximately $15 million of gross margin commitment remaining on the contract. The company expects the gross margin commitment to be met in the second quarter 2008 and will evaluate the approach to external revenue reporting under this agreement going forward once the commitment is satisfied.
Communications deferred revenue decreased to $918 million at the end of the first quarter 2008, compared to $939 million at the end of the first quarter 2007 and $929 million at the end of the fourth quarter 2007.
Communications cost of revenue for the first quarter 2008 increased to $459 million, versus $450 million in the first quarter 2007 and $444 million in the previous quarter.
Communications Gross Margin was $607 million, or 56.9 percent in the first quarter 2008, compared to $587 million, or 56.6 percent in the first quarter 2007. For the fourth quarter 2007, Communications Gross Margin was $640 million or 59.0 percent. The fourth quarter gross margin had the benefit of the $16 million SBC performance bonus.
Sunit Patel, Executive Vice President and CFO of Level 3 remarked, ''Actual gross margins in coming quarters will largely be determined by the mix of Core Network Services revenue and Wholesale Voice Services revenue. Core Network Services revenue has incremental gross margins of approximately 80 percent and Wholesale Voice Services revenue has incremental gross margins of approximately 30 percent. Over the course of the year, we expect to benefit from the growth of higher margin Core Network Services revenue and network optimization.''
Communications SG and A expense, including non-cash compensation expense, was $418 million for the first quarter 2008, versus $439 million for the first quarter 2007 and $439 million for the fourth quarter 2007. Communications SG and A includes $23 million, $24 million and $50 million for the first quarter 2008, first quarter 2007 and fourth quarter 2007, respectively, of non-cash compensation expense.
Excluding non-cash compensation expense, Communications SG and A was $395 million in the first quarter 2008, a 5 percent decline compared to $415 million in the first quarter 2007. Fourth quarter 2007 Communications SG and A, excluding non-cash compensation expense, was $389 million, which included a $21 million reduction in incentive-based compensation expense.
Adjusted EBITDA for the communications business was $205 million for the first quarter 2008, a 22 percent increase compared to $168 million for the first quarter 2007. Fourth quarter 2007 Communications Adjusted EBITDA was $246 million. Communications Adjusted EBITDA margin was 19.3 percent in the first quarter 2008, versus 16.2 percent in the first quarter 2007 and 22.7 percent in the previous quarter. Communications Adjusted EBITDA excludes non-cash compensation expense and includes severance and restructuring charges related to integration activities of $7 million, $4 million and $5 million for the first quarter 2008, first quarter 2007 and fourth quarter 2007, respectively.
The company's other businesses consist primarily of coal mining operations. During the first quarter 2008, the company recognized $6 million in Adjusted EBITDA from other businesses, compared to $2 million in the first quarter 2007 and zero in the fourth quarter 2007. The increase in Adjusted EBITDA was primarily the result of a buyout agreement with one of the coal customers, providing a one-time benefit of $5 million during the quarter.
During the first quarter 2008, Unlevered Cash Flow(1) was negative $21 million, versus negative $69 million in the first quarter 2007 and positive $146 million for the previous quarter. Consolidated Free Cash Flow for the first quarter 2008 was negative $160 million, versus negative $248 million for the first quarter 2007 and positive $41 million for the fourth quarter 2007.
Mr. Patel continued, ''As expected, our cash flow losses widened during the quarter resulting from negative fluctuations in working capital due to annual bonus payments, declines in payables due to a decline in capital expenditures, prepayments on maintenance contracts, interest payments and property tax payments. For the remaining three quarters of the year, we expect to be free cash flow breakeven on a cumulative basis. Additionally, as we previously disclosed, we expect to be free cash flow positive for the full year 2009.''
The company made several improvements to the service activation processes during the quarter and installed more Core Network Services compared to the previous quarter.
The company also made progress in the implementation of its Project Unity initiative, which remains on schedule. By the end of 2008, Unity processes and systems are expected to support activation of approximately half of the company's order volume, and approximately two thirds of Core Network Services revenue. This increase in operational efficiency, combined with ongoing process improvements, is expected to further increase overall installation capacity over the coming quarters.
Mr. Patel added, ''Our sales funnel growth continues to point to strong sales momentum for the first half of the year. Sales and installs increased in the first quarter and we are aggressively hiring new salespeople to address the strong demand we are seeing in the market. Our installation capacity increased in the quarter, and we expect to continue to increase capacity throughout 2008. We are reaffirming our projection that Core Communications Services revenue will grow 8 to 13 percent for the full year 2008.
''In addition, we expect Consolidated Adjusted EBITDA to increase throughout 2008 as a result of Core Communications Services revenue growth, combined with improvements in gross margin and continued reductions in operating expenses. We are reiterating our 2008 Consolidated Adjusted EBITDA guidance of $950 million to $1.10 billion.''
Mr. Crowe remarked, ''Our sales and installation rates increased during the first quarter and we expect that positive trend to continue throughout 2008. Our financial results for the first quarter and the overall healthy pricing and demand environment give us increasing confidence in our 2008 business outlook, and our ability to be free cash flow breakeven in aggregate for the remaining three quarters of 2008.
''Importantly, we believe our actions over the past six months have greatly improved our customers' experience and that our extensive end-to-end network, coupled with our broad service portfolio, makes us the alternative provider of choice for high bandwidth needs.''
The company will post an investor presentation that summarizes the financial and operational progress for the first quarter 2008 on its web site.
Level 3 Communications, Inc., an international communications company, operates one of the largest Internet backbones in the world. Through its customers, Level 3 is the primary provider of Internet connectivity for millions of broadband subscribers. The company provides a comprehensive suite of services over its broadband fiber optic network including Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice services and voice over IP services. The services are designed to provide building blocks that enable Level 3's customers to meet growing demands for advanced communications solutions.The principal components offered by Level 3's VoIP Enhanced Local service include network trunking, local telephone numbers, local number portability, the safety of E-911, operator assistance, caller ID, directory listings, and directory assistance. The service is designed to allow Level 3 customers to retain the flexibility to manage and control end-user features without the difficulties of implementing complex interconnection arrangements.
For more information about Level 3, please visit: www.level3.com.
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| Server Virtualization Firm, VMware, Defrays Costs, Through Energy Conservation
Palo Alto, California - (The Hosting News) - May 14, 2008 - Virtualization solutions firm, VMware, Inc., has reportedly helped to defray costs for customers in the amount of 39 billion kilowatt hours of electricity, which amounts to over the power that is used annually to heat and cool the country of Denmark.
Stephen Herrod, Chief Technology Officer, VMware noted, ''Most servers and desktops today are still consuming 70-80 per cent of their rated power even when idle. VMware is able to deliver substantial power and cost savings through innovative power management capabilities in our virtualization solutions that safely power down or throttle servers when not in use. By powering down servers and desktops during inactive periods such as evenings or weekends, we can help customers save another 25 per cent or more on power consumption without affecting applications or users.''
The virtualization solution firm for desktops to datacentres, reports that by using its virtualization, customers can consolidate 10 or more physical machines onto a single server and reduce power consumption and cost by 80-90 per cent. VMware customers that have moved from a 1:1 application to server ratio to 60:1 or higher have achieved millions of dollars in capital and operational savings.
For every server virtualized, customers can save about 7,000 kilowatt hours (kWh), or four tons of CO2 emissions, every year. VMware has virtualized more than 6 million server workloads since 1998, resulting in an estimated energy savings of nearly 39 Billion kWh, or roughly US4.4 billion. This is roughly equivalent to the total energy consumption of Denmark for one year. PCs virtualized and hosted on servers in the datacentre can also reduce power consumption and cost by 35 per cent. Hosting desktops in the datacentre also doubles the replacement cycle of PCs or thin clients, reducing the environmental impact associated with manufacturing new equipment.
Since 2006, VMware has been an active pioneer inworking with utility companies to offer incentive programs supporting virtualization projects in datacentres. VMware works with utilities across North America including Pacific Gas and Electric, Southern California Edison, SDG and E, BC Hydro and Austin Energy to provide customers incentives based on the amount of energy savings achieved through datacentre consolidation.
Sheffield Hallam, one of the UK's most innovative and progressive universities with more than 28,000 students and over 5,000 staff, required a number of new IT services to support its user community. This led to the number of servers within the datacentre doubling within twelve months. The building's electricity grid could not supply enough power to reliably support the required number of servers within the main datacentre, and physical space was also a major issue. Sheffield Hallam is using VMware's market-leading datacentre virtualization and management platform, VMware Infrastructure 3, to reduce power and cooling requirements in the datacentre and improve the delivery of IT services. VMware Infrastructure 3 provides the capability for automatic load balancing, business continuity and power management and the ability to move a virtual machine across physical machines to minimize service interruption.
Dave Thornley, service support manager, Sheffield Hallam University remarked, ''With the server farm growing towards capacity, we knew a completely new strategy was required. We decided that moving to a virtual infrastructure would be the most effective way to tackle cost management and space issues. Using VMware, we have made a huge impact on our power bills as well as leading to major savings in the deployment of new services to users.''
VMware (NYSE: VMW) is the global leader in virtualization solutions from the desktop to the datacentre. Customers of all sizes rely on VMware to reduce capital and operating expenses, ensure business continuity, strengthen security and go green. With 2007 revenues of $1.3 billion, more than 100,000 customers and nearly 14,000 partners, VMware is one of the fastest growing public software companies. VMware is headquartered in Palo Alto, California and on the web at www.vmware.com. VMware Canada is headquartered in Burlington, Ontario.
To learn more information on the green VMware virtualization, please visit: www.vmware.com/solutions/consolidation/green.
For more information about VMware, please visit: www.vmware.com.
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| Web Hosting ISP, Earthlink's New Edge Networks, Powers Whitehall Jewelers
Vancouver, Washington - (The Hosting News) - May 13, 2008 - Wholly owned subsidiary of EarthLink Inc., New Edge Networks, has inked a $1.6 million deal with Whitehall Jewelers, for 375 stores.
The agreement has expanded and renewed for managing and maintaining a private network linking the jewelry chain's regional and super-regional shopping malls and power centers in 39 states.
Building on a long-standing business relationship, New Edge will manage and maintain Whitehall's existing private IP network based on DSL technology. The agreement also expands Whitehall's network to 78 recently acquired jewelry stores. Installation work at the newly acquired locations is underway.
The specialty retailer of fine jewelry uses its private wide area network for processing store transactions, sales polling, selected Web access and corporate email. To ensure privacy and security, Whitehall's network traffic, such as payment transactions and email, does not traverse the public Internet.
Greg Griffiths, Vice President of Marketing for New Edge noted, ''Our business relationship with Whitehall Jewelers has led to our mutual growth and success.'' Both companies have benefited from trying new service approaches for optimizing the value of a private network after discussions in quarterly account review meetings.
Feedback from Whitehall was instrumental in New Edge's decision to reorganize its operations support center and assign dedicated teams of technicians for supporting large customers with complex network configurations. When these customers call New Edge's operations support system, they speak to someone they likely know by first name and who is familiar with their network design.
Mark Funasaki, Executive Vice President and Chief Administrative Officer for Chicago-based Whitehall Jewelers added, ''Our private network is an important component of our business growth plans and strategies. We want to use our network to favorably transform the shopping experience for our customers. Network flexibility, uptime and stability are paramount for smooth and efficient store operations.''
Whitehall Jewelers is a national specialty retailer of fine jewelry offering a selection of merchandise in the following categories: diamonds, gold, precious and semi-precious jewelry and watches. As of April 30, 2008, Whitehall Jewelers operated 375 stores in regional and super-regional malls as well as power centers in 39 states.
New Edge Networks is a wholly owned subsidiary of EarthLink Inc. (NASDQ: ELNK). New Edge Networks builds and manages private networks for businesses and communications providers. Through its nationwide backbone network with almost 900 switches and Internet routers, New Edge Networks uses any blend of network and access technologies (MPLS, frame relay, ATM, xDSL, cable, wireless, and satellite) for providing high-speed connections at any business address in the United States. Network options include any combination of access, network management functions, and on-site installation services.
To learn more about Whitehall Jewelers, please visit: www.whitehalljewelers.com.
For more information about New Edge Networks, please visit: www.newedgenetworks.com.
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| Dedicated Server Solutions, SoftLayer, Expands On-Demand Data Center Portfolio
Dallas, Texas - (The Hosting News) - May 13, 2008 - On-demand hosting services and virtual data center provider for the small to medium enterprise (SME), SoftLayer, has expanded its advanced, on-demand data center services portfolio.
Nathan Day, Chief Technology Officer at SoftLayer noted, ''CDNLayer is one more way we provide enterprise-class services to customers of any size. Consumer demand for online video and media-rich websites is exploding. Companies and individuals in every industry, from entertainment and gaming to social networking and e-commerce, will benefit from using CDNLayer to optimize their content management and delivery.''
By launching CDNLayer, an industry leading content delivery network (CDN), the solution will optimize the delivery of web content so that it arrives to end-users with increased speed and reliability. The service is priced at only $20.00 per month for the first 200GB of data transferred and only $0.20 per GB thereafter, making it the simplest and most competitive CDN solution in the market.
CDNLayer uses a network of multiple, geographically diverse server nodes running advanced software that organizes, stores, and streams online content. Rather than serving content directly from the host server to the end-user, CDNLayer moves content from the host server to a node that is geographically closer to the end-user. This minimizes the distance the data has to travel, avoiding network traffic jams, and decreasing latency. CDNLayer includes tools for improved management, helping with content monetization. In addition, it features the ease-of-use and increased control for which SoftLayer is known.
Nathan Day, Chief Technology Officer at SoftLayer remarked, ''The Internet originally was not designed to deliver content that requires large transfer rates, leading to poor performance, interruptions, and failed downloads. CDNLayer changes that. Content is delivered faster and more reliably, creating an improved user experience - leading end-users to spend more time on a site and use its services.''
Recently, SoftLayer opened a new data center location in the Washington D.C. area. The addition of this facility increases the company's total capacity to 45,000 servers throughout their facilities located in Dallas, Seattle, and now D.C.
SoftLayer Washington D.C. is located just 7 miles from Dulles International Airport in a facility designed to full Tier IV standards. It features multiple redundant power connections in addition to the three 2-megawatt generators and eight, fully redundant, 750 kVA UPS systems. As with all SoftLayer data centers, the facility has 24x7 onsite support and multiple security protocols controlling entrance to the building. In addition, the facility boasts infrastructure features including:
- 34 x 480v 3-Phase PDUs
- Redundant 30-ton CRAC Units
- FM-200 Fire Suppression System with VESDA
- Biometric Security System
- Digital Security Video Surveillance
SoftLayer has already begun pre-selling servers in the new data center to current customers, receiving an unprecedented level of demand resulting in a high backlog of server requests. Mr. Crosby added, ''We knew interest in the new location would be high, from both existing and new customers. We wanted to give our current customers an opportunity to request servers here and meet their demand prior to opening sales to the general market.''
Headquartered in Plano, Texas, SoftLayer provides next-generation web hosting and on-demand datacenter services on a global basis from facilities located in Dallas, TX and Seattle, WA. Utilizing proprietary management tools coupled with the industry's first network-within-a-network topology, the company delivers unprecedented power and control to securely manage IT environments while providing unparalleled scalability.
To learn more about SoftLayer, please visit: www.softlayer.com.
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