55 days ago, March 30th Equinix opened up its 50th International IPX in London. Since then it opened its 3rd data center in Paris, its ready to open its 4th data center in Amsterdam, ready to build it’s 2nd in Dallas, opened its 4th data center in Switzerland, expanded its NY4 IPX, began rebranding Switch & Data (Goodbye S&W) and leased more space for its NJ Data Center.
Now for Digital Reality Trust – 56 days ago they expanded their STL data center followed by announcements planning another 170,000 s/f additions, signed up 132,000 s/f in VA, acquired 40k s/f in Santa Clara and announced expansion in the Pacific Rim (a very big place).
Bankers, financial advisors, IPO people, opportunists. I think you need to look at the general hosting industry. You may have noticed the world is sort of bleak financially as of late. Someone somewhere someplace needs data centers, servers, back-up data, secure systems and a bunch of other stuff you don’t really understand to monitor this monetary disaster. They need hosting, servers and collocation to trim those jobs back. The government needs more computers to figure stuff out. (I just found out something interesting on the Govt. line which we will go into in the next blog.)
Hosting by and large is filled with small and medium sized business that need some $5-$100 million in lines of credit. And business is booming.
Now I know you have a problem with “subscriber lists”, few long term contracts. Understanding terms like “cloud”. Sometimes banks do have a hard time getting their arms around non-brick and mortar loans. That is why they like real estate.
Take it from me – If a little Cable TV company like Comcast (their revenues are from millions of homes without any long term contracts) can possibly buy NBC a company that sells “time”, it is possible that this industry is something you can understand.
So I suggest you have more analysts follow this sector, read theWHIR. As a self-promoting note I am discussing this, the cloud and valuations at Hostingcon, consider attending.
I am not kidding, I smell opportunity.
Later – Tom
More about Tom: NCC International – the Hosting Business Broker Twitter: TomNCC and NCC WebHostBusiness
About Tom Millitzer
I am an M&A guy. I sell Hosting Companies. I want you to fulfill your dreams. If you are building your company or exiting for success...I want help you grow rich.
I started NCC International in 1994, we represented our first hosting company in 1997. NCC has completed over 400 assignments. If you are considering buying or selling you need to know me. I do not bite.
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