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365 Main Launches Data Center Program

By Justin Lee, theWHIR.com

December 6, 2006 -- (WEB HOST INDUSTRY REVIEW) -- With data centers filling up as fast as they are built, data center space has become a coveted resource in recent years. One result is that IT companies are more willing to sign multi-year lease agreements for an abundance of space that they can grow into.

   
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Data center developer and operator 365 Main (www.365main.com) is working to address this demand with its SCALE 365, a national program that will make available large amounts of high-end data center real estate at wholesale rates to customers seeking to set up data centers of their own within 365 Main?s facilities.

The new program is designed for companies that need to rapidly build or expand large footprints of modern data center space. Miles Kelly, VP of marketing and strategy for 365 Main, believes the data center business has a real need for the service.

"Based on our analysis of the market and a real deep understanding of our skill set as a company, we believe this is the ideal offer in the market today," says Kelly. "We spent a lot of time talking to our customers and we've seen quite an uptake in ISP traffic, in the last year."

The program offers power, cooling, connectivity and security services in customizable private rooms of 5,000 to 20,000 square feet within 365 Main's facilities. The program will also involve the development of new facilities.

More than just mitigating financial risk and enabling customers to focus on their core competencies, SCALE 365 helps hosting and colocation providers to generate revenue by remarketing leased space quickly at positive margins and enables them to scale and market their services faster.

"We are very much like a real estate company in that we know how to build and operate and keep a modern data center built and running 24 hours a day, 365 days a year," says Kelly. "But we're not interested in walking the floor of each of those cages and selling services to those customers."

Rather, we allow our own customers to provide managed services to the smaller one cabinet deals. We're pretty unique in the market in that position and it's the reason why this program has been successful and will continue to be."

The program has met with success so far, signing high-profile customers such as colocation service provider NET2EZ and managed services provider Global Netoptex.

NET2EZ Managed Data Centers recently doubled its occupancy at 365 Main's El Segundo facility. The company leased a second 15,000-square-foot colocation room, bringing its total leased footprint to 30,000 square feet.

SCALE 365, says Kelly, is not focused on 365 Main's existing data centers, but rather the next set of data centers that the company will begin building and acquiring in the new year.

"This is not a desperation program to create some momentum," says Kelly, "but rather it's an accelerator for our existing inventory that's really going to help us walk hand in hand with customers on the next three to five properties that we will bring under management."

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