What's Up With the Data Center?

Peter : On Rad's Radar?
Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

What's Up With the Data Center?

This morning there is an article that "RDG Capital Fund Management, the investment vehicle of Russell Glass and a significant shareholder of Internap, put out a public call today citing shareholder support for a sale of the company," InterNAP.

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On top of that, rumors say that Verizon is shopping its data center business, formerly known as Terremark, owners and operators of the NAPs.

Windstream got a banker to shop its data center business, Hosting Solutions, which it bought in 4Q2010 for $310 Million.

Other recent deals include vXchnge buying 8 data centers from Sungard AS; and Digital Realty Trust, Inc.plunking down $1.886 Billion to private equity firms ABRY Partners and Berkshire Partners for TELx.

CEO of COLOTRAQ, Dany Bouchedid says, "There is still significant segmentation in the demand for data center services that will continue to fuel some consolidation and some divestitures as some vendors focus on developing next gen facilities and cloud ecosystems."

The time is hot for selling data centers. After all, data centers are where all that cloud infrastructure sits. Google, Facebook, Amazon and Microsoft - as well as the NSA - are building more data centers for themselves to house all the servers that are collecting all of our data. (These companies are even running their own network on dark fiber they lease.)

Windstream may just need the cash - or as Dany says is shifting away from owning data centers, which may explain WIND storing gear in Zayo's zColo. The PE (private equity) firms that own data centers probably want to cash out while the getting is good.



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