(WEB HOST INDUSTRY REVIEW) — Data center and managed services provider Hosted Solutions (www.hostedsolutions.com) has completed more than $6 million in enhancements to its Boston data center in response to growing customer demand throughout New England.
Hosted Solutions announced Monday that its upgrades include roughly two mega watts of increased UPS power capacity and substantial cooling, as well as infrastructure, back-up power, security and video surveillance improvements. It has also expanded its Boston workforce, hiring some of the most seasoned professionals in the market, according to the company.
“We did it to meet the current and anticipated demand that we’re facing in Boston,” founder and chief executive officer Rich Lee said. “We’ve hired a brand new sales team as of about 12 months ago and they’ve hit the ground running and we’ve dramatically expanded the client base in that time frame throughout New England. We’ve helped escalate this capital expansion due to our acquisition by ABRY Partners about 12 months ago. So we’re seeing a lot of increased demand in that New England area in general.”
Acquired in April 2008 by Boston media and communications private equity firm ABRY Partners (www.abry.com) for $140 million, Hosted Solutions has been undergoing a strategic expansion plan throughout the East Coast, where the company has four other high-capacity data centers.
“Existing customers are growing dramatically, and looking for ways to cut costs and outsource to a trusted provider, as well as the new customers we’ve bringing, has really created a groundswell, or a perfect storm that’s going on in the IT outsourcing sector in general,” Lee said.
With sources of credit drying up, Lee explained that outsourcing data services is becoming more attractive, as the capital-intensive process of data center construction goes beyond the budget of most small and medium-sized businesses, and many enterprises. With the costs around a thousand dollars per square foot, a 10,000 foot data center would cost around $10 million, making data center construction simply not an option for many corporations.
Additionally, Hosted Solutions has begun offering an enhanced suite of professional and managed services to customers, including application management, managed replication, disaster recovery, load balancing, managed O/S and advanced monitoring, all featuring Hosted Solutions’ “hi-touch” approach, which offers companies both best-of-breed technology and experts to guide them in their use.
The Boston expansion will also help Hosted Solutions roll out its private cloud offering, “Trusted Cloud,” in the coming months, giving enterprises a service that they can rely on both for reliability and to meet legal guidelines.
“Cloud has a lot of interesting connotations…and we feel like we’ve really started to define what we feel like is the concept of the ‘private cloud’ or the ‘Trusted Cloud,’ and companies that work with us that have high compliance requirements or regulatory requirements, at the end of the day, need to know where their information is being stored,” Lee said.
“When you’re talking about a private or trusted or enterprise cloud offering like hosted solutions is about to roll out, we’re clearly not going to be focused in the lower-end, non-mature applications that some of the companies don’t need an SLA around or don’t need mission-critical uptime,” he continued. “We’re clearly going to be going after an enterprise client with our cloud offering and make sure it’s trusted, highly available and customers know where the data is sitting and can verify where that data is.”
Over the last six months, Hosted Solutions has added many numerous new clients across the banking, technology, healthcare, retail, SaaS and e-commerce sectors, including Kiva Systems, Managed Technology Partners, Clarus Ventures, Innerscope, Insight Direct, Custom Financial Solutions and Risk Management Group.
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