JUNIPER REVEALS DATA CENTER STRATEGY Issue 3, April 2009
Networking giant Juniper Networks revealed it is working on a data center scheme, codenamed the Stratus Project, to create a single data center fabric that will deliver a quantum jump in scale, performance and simplicity, with the flexibility to support fully converged and virtualised data center environments.
David Yen is leading Juniper’s project
FINANCIALS TELECITY
Data center operating and colocation firm Telecity Group reported full-year revenue up over one-third at £133m, from £97m in 2007 and earnings before tax more than doubling to £40.4m from £19.3m the year before. Profit after tax reached £25.3m compared with a loss of £7m in 2007. Michael Tobin, Telecity Group CEO, said: “Increasingly, the most important measure of capacity in our industry is the availability of power for our customers rather than just space. Our fully funded, demand-driven programme of expansion, which started in 2008, will allow us to lift our power capacity available for customer use from 33MW at the beginning of that year to some 60MW in 2011.
FURTHER READING Colocation suppliers’ market insight, page 38
A sharp focus on cost management saw Novell report profit from operations up by $6m on reduced net revenue of $215m for its first quarter ended 31 January. This compares with net revenue of $231m for the first fiscal quarter of 2008. Income from operations for the first fiscal quarter of 2009 was $1m, compared with income from operations of $8m for the first fiscal quarter of 2008.
UK-managed web services hosting provider NetBenefit announced a strategic partnership
The Stratus Project is being developed by the new Data Center Business Group, under the leadership of executive
with business ISP Lumison. The contract sees NetBenefit open a new data center facility boasting green credentials, including 100% renewable energy. The new center includes 22 amps per rack, provides the option of access to the new Gbit network and cold aisle containment, which should cut 30% on energy used for airconditioning.
EQUINIX
Annual revenues for worldwide data center services supplier Equinix jumped 68% to $704 million for 2008. For the fourth quarter ended 31 December 2008 revenues were $190.7m. Recurring revenues were $182.8m for the fourth quarter – a 5% increase over the previous quarter – and $670.1m for the year, a 68% increase over 2007. Nonrecurring revenues were
$7.9m in the quarter; $34.6m for the year ended 31 December 2008. Operating income for the fourth quarter was $11.6m, which was added to a tax benefit from releasing valuation allowances for US and Australian operations, which resulted in a $104m benefit. Profit for the year was $131.5m or $27m, excluding the tax benefit.
Tyco International’s 2009 first quarter revenues dipped slightly to $4.4bn the company said, blaming the continuing strength of the dollar. “As we expected, our results this quarter were impacted by the strengthening US dollar against foreign currencies, but our overall revenue came in at the high end of our expectations,”
vice president David Yen. The company said: “Juniper Networks has a vision for a cloud computing infrastructure that enables operational innovation based on the ability to connect everything and empower everyone. This vision paves the way to super data centers that can harness the scale to dynamically allocate any resource, including routing and security services, storage and servers – without compromise. Legacy architectures
said Tyco CEO Ed Breen. “In this challenging economy, we are focused on both reducing our cost structure and positioning our businesses for long-term growth. At the same time, our strong and improving balance sheet is an important asset for our company in the current environment.” Operating income fell 6% to $231m compared with 2007’s first quarter. Operating margin was stable at 12.9%.
Colo supplier Terremark beat its own guidance on its third quarter income of $8.2m and revenue reaching $65.9m. “A key driver of our company’s overall success has been the strategic investment to grow our federal business, which uniquely positions our company to capitalise on the many opportunities we expect in the coming months as the proposed stimulus package is approved and federal agencies drive to enhance efficiency through the expanded use of IT under the Obama administration,” said Manuel Medina, chairman and CEO of Terremark.
DRT wants to raise $80m through a rights issue. The offering involves 2.5 million shares and is being underwritten by Credit Suisse Securities.
SynapSense Corporation, which provides wireless energy sensors to the data center market, received $7m in additional funding from the investment arm of German manufacturer Robert Bosch.
FOCUS NEWS INDUSTRY & FINANCE
constrain today’s data centers as they attempt to cope with the exponential increase in applications, servers, storage and network traffic. By rethinking the network
from the ground up, Juniper has created a long-term strategy to develop a single data center fabric with the flexibility and performance to scale to super data centers, while continuing to drive down the cost and complexity of managing the data center information infrastructure.”
ACTIVE POWER
UPS maker Active Power joined the HP Data Center Solution Builders Program. Under the terms it will use PowerHouse solution, a containerised power and cooling architecture, for the HP Performance Optimized Data Center (POD).
Active Power will make available a standard size 450kW configuration that can power a single HP POD, as well as configurable solutions that can power several HP PODs.
Proof, if any were ever needed that data center services is being seen as a lucrative market, can be found in the latest announcement from Accenture and Cisco. The networking giant and the management consultancy best known for strategic planning and business change have teamed up to “combine the capabilities of Accenture’s business-process experts and Cisco networking experts to help companies optimise their network and data center infrastructures to improve the performance of mission-critical applications and reduce risks”.
Accenture and Cisco say they formed a business group to help companies take advantage of IT as a strategic asset to help them further improve business agility, reduce costs, increase revenue and deliver superior customer service.
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