IT Services Firm Cbeyond Buys Web Host MaximumASP for $40M

IT services provider Cbeyond (www.cbeyond.com) announced on Thursday it has acquired the assets of Web hosting and cloud provider MaximumASP (www.maximumasp.com) and its affiliated companies, as well as the outstanding stock of Aretta Communications.

The combined acquisition is worth $40 million which includes $33 million that was paid at closing and the remaining balance of up to 17.5 percent of the combined purchase price to be paid upon achieving certain future milestones.

MaximumASP provides cloud services such as managed virtual servers and dedicated servers, while Aretta Communications provides cloud services such as private branch exchange and session Internet protocals trunking.

Both companies target small- and medium-sized businesses throughout the US.

Cbeyond says the acquisition of MaximumASP will bring multiple benefits to its business, including entry into a large, high growth cloud services market, expansion of product portfolio into IT services designed for small businesses, a broader geographic opportunity outside Cbeyond’s existing 14-city footprint, new Web distribution and private label reseller channels, and significant cross-selling and up-selling opportunities.

Additionally, Cbeyond sees a greater opportunity to sell Cbeyond’s existing cloud services via the acquired online platform in the future, a new customer economic model based on server virtualization, a 33,000 square foot data center, and a platform to provide additional software and infrastructure as a service offerings.

“The acquisition of MaximumASP and Aretta Communications is an important step forward for Cbeyond’s business,” says Jim Geiger, CEO of Cbeyond. “We believe these acquisitions will provide significant growth opportunities, leverage our existing channels of distribution, and expand our innovative technology and expertise. In addition, we are excited to bring on board a team of talented people and a first class technical platform and data center. We believe that small businesses will be increasingly outsourcing their IT hardware and services to the cloud and that Cbeyond can play a key role in enabling this trend.”

The two acquired companies are expected to earn an aggregate fiscal 2010 revenue of about $12 million.

Cbeyond was advised by The Bank Street Group for the acquisition of MaximumASP.

Share
Posted in More Web Hosting News | Tagged , , , , , , | Leave a comment

Windstream to Acquire Managed Hosting Provider Hosted Solutions for $310 M

US telco and broadband provider Windstream Communications (www.windstream.com) has entered into a definitive agreement with private equity firm ABRY Partners (www.abry.com) to buy data center and managed hosting provider Hosted Solutions (www.hostedsolutions.com) for $310 million cash.

Based in Raleigh, N.C., Hosted Solutions provides regional data center and managed hosting focused on enterprise-class Infrastructure as a Service solutions, including managed hosting, managed services, colocation, cloud computing and bandwidth, for small businesses to large enterprises. It serves more than 600 customers and has approximately 125 employees.

According to Windstream’s Thursday announcement, the acquisition of Hosted Solutions will bolster Windstream’s data center business with the addition of five state-of-the-art SAS 70 Type II-certified data centers in Raleigh, N.C., Charlotte, N.C., and Boston, totalling 68,000 square feet of data center capacity.

“Data center space is increasingly in demand among our existing business customers,” Windstream president and chief executive officer Jeff Gardner said in a statement. “Hosted Solutions is an excellent complement to our existing enterprise service portfolio.” Windstream will consequently have a total of 12 data centers across the country.

This acquisition, Windstream expects will provide a platform for future growth in the business enterprise and cloud computing segment under Hosted Solutions’ experienced management team.

Gardner continued, “For the past decade, [Hosted Solutions] have been delivering highly complex managed hosting solutions to customers of various sizes. In addition, they have a proven track record of growing revenue and generating significant free cash flow.”

Windstream expects to finance the transaction with existing liquidity through cash reserves and revolving credit capacity. Further, Windstream will be able to fully amortize the purchase price over a 15 year period, resulting in expected tax benefits with an estimated net present value of $52 million.

The boards of both companies have approved the transaction, which is expected to close in the fourth quarter of 2010, subject to conditions including the necessary regulatory approvals.

In 2008, media and communications private equity firm ABRY Partners bought Hosted Solutions for $140 million.

Share
Posted in More Web Hosting News | Tagged , , , , , , , , | Leave a comment

Cloud Computing 101

Using Cloud Computing
Cloud computing and cloud web hosting delivers flexible applications, web services, and IT infrastructure as a service, over the Internet, using a utility pricing model. Cloud computing allows businesses to instantly scale their technology requirements to meet new demands. The Cloud is a cost-effective approach to technology because businesses don’t need to make usage predictions, upfront capital investments, or over-purchase hardware or software to meet the demands of peak periods.

With the right approach, cloud computing can work for any size organization. The industry has seen the highest uptake from startups and tech savvy developers, however, enterprises are starting to adopt cloud computing. Examples of this include pharmaceutical companies using the Cloud to perform drug research analysis and online retailers trying a new strategy for surges in seasonal website traffic.

As you move into any new technology, it’s important to understand the benefits or use cases it offers. It’s imperative to carefully plan the implementation of cloud technology to ensure maximum ROI.

Steps to Implementing a Cloud

1. Plan and Be Realistic
The most important first step when implementing a cloud solution is to establish clear and realistic goals. Approach the planning process with patience—don’t try to do too much too soon. Also, you should consult key internal stakeholders at the outset of any cloud implementation. This includes legal advisors and indemnity insurers to ensure full protection if a data breach occurs. Other internal stakeholders, including those who sign off on technology purchases (e.g., the CEO in a small or medium business and the IT Director in a larger organization) must also be consulted.

2. Identify the Problem
Once the objectives have been outlined, take inventory of your applications and consider which ones should be moved first. Next, identify the in-house expertise available to support the migration. A thorough assessment of the applications to be migrated to the Cloud is crucial before any investment is made. Consider which applications are best suited for the Cloud and why.

One approach is to determine where you have the most IT pain today and where you stand to gain the biggest benefit from the Cloud. Another approach is to migrate less “risky” applications-those that are not core to the business or customer facing first. You may want to start testing the Cloud with a low risk or legacy application that needs to be refreshed. This will give your team time to learn more about working with the Cloud.

Implementing cloud does not have to be a complex project. Complexity, or simplicity for that matter, will be dictated by the planning that goes into the project prior to start, the chosen cloud provider’s approach to migration and setup, and the type of applications to be migrated.

3. Choose the Right Partner
Choosing the right cloud partner is another key component for ensuring a successful and long-term partnership. Be sure that the Cloud provider is going to support you. They should care about your success and share in both your achievements and your challenges.

Key questions to ask a cloud provider during the selection process include:

  • How long has the company been offering cloud services?
  • Is the company profitable? If so, for how long has the company been profitable?
  • Does the company provide a reliable and secure service? What compliance and controls are in place for the service?
  • Does the company provide 24/7 technical support? Are there additional costs associated with the support provided? What is included in the company’s technical support? How many support techs are on the support team?
  • What technologies does the company’s Cloud service support?
  • Does the company have a product roadmap they can share?
  • What is the service level agreement associated with the service?
  • Does the company require a long-term contract to sign up for the service? Are there any setup costs associated with sign up?
  • Are discounts available for high volume usage? If so, at what volume levels?
  • Does the company require a minimum monthly spend?
  • Is there a free trial period offered with the service?
  • Does the service enable mobile access?

4. Implement “The Cloud”
After you’ve selected your cloud provider, and identified which applications you want to migrate first, it’s time to begin your implementation. Email is usually a good place to start because it is one of the most painless IT applications to migrate. You can also try your email in the Cloud in a phased approach starting with a handful of users to pilot the program before fully committing. The Cloud is painless to try before you buy because the purchasing process is simple and there are no long-term commitments.

After the pilot program, reassess how the Cloud is working for your business needs. If everyone is happy with the performance and cost benefits, it is time to work with your cloud provider and begin a broader deployment.

Remember to evaluate your needs over time to see where you can gain new benefits from the Cloud. The Cloud is not a static technology and, as such, will continue to evolve and change. Because cloud provider-vendor relationships are fluid, you can move to better technologies without penalty.

Remember, the Cloud is a complement to your current IT investment. It is not an all-or-nothing solution, but something that can be adopted over time with careful consideration and planning. Each cloud implementation should be based on your company’s individual IT needs.

5. The Time is Now
The time has never been better to start experimenting with the Cloud. The tightening economy means businesses have a greater need to get value for money and this is one of the primary benefits of cloud computing. It enables businesses to match costs directly to revenues to scale up and down very quickly. Experimenting now with the Cloud will put businesses in the best possible position to not only survive, but flourish when the recession ends.

Share
Posted in Cloud Servers, Cloud Sites | Tagged , , , , , | Leave a comment

NASA takes cloud computing to Mars

cloud computing on mars with NASA

Cloud computing on Mars

NASA said its twin Mars rovers Spirit and Opportunity have become the first NASA space mission to use cloud computing for daily mission operations.

NASA’s Jet Propulsion Laboratory, which manages the rovers and the cloud project said it is working with the cloud team of Amazon.com to use cloud computing in the Mars Exploration Rover Project’s daily operations. JPL developed Maestro the rover project’s activity-planning software. JPL manages NASA’s  future Mars Laboratory and expects to utilize cloud computing technology for that mission as well.

“When we need more computing capacity, we don’t need to install more servers if we can rent more capacity from the cloud for just the time we need it. This way we don’t waste electricity and air conditioning with servers idling waiting to be used, and we don’t have to worry about hardware maintenance and operating system obsolescence,” said JPL’s John Callas, rover project manager in a statement.

“The rover project is well suited for cloud computing,” added Khawaja Shams, a JPL software engineer supporting the project. “It has a widespread user community acting collaboratively. Cloud enables us to deliver the data to each user from nearby locations for faster reaction time.”

NASA added that the unexpected longevity of the rover mission means the volume of data used has outgrown the systems originally planned for handling and sharing data, making the “virtually limitless capacity of cloud computing attractive.”  The rovers Spirit and Opportunity landed on Mars in January 2004 for a three-month mission.  Opportunity continues its exploration mission while Spirit has been mired in the Martian soil and might not recover.

Despite the fact it is stuck in the mud, NASA said the ground where Spirit is stuck last year holds evidence that water, perhaps as snow melt, trickled into the subsurface fairly recently and on a continuing basis.  NASA’s Mars rover Opportunity recently took a small detour on its current journey to check out what could be a toaster-sized iron-based meteorite that crashed into the red planet.  NASA scientists called the rock “Oileán Ruaidh,” which is the Gaelic name for an island off the coast of northwestern Ireland.

Beyond the missions, this isn’t JPL’ s first foray into cloud computing. It worked with the cloud team at Microsoft last Fall to launch the “Be a Martian” website. The site enables the public to participate as citizen scientists to improve Mars maps and take part in Mars research tasks.

In addition, JPL has worked with the cloud team at Google on a project in which JPL and computer science students at the University of California, San Diego, developed an educational application enabling fifth- and sixth-graders to tag labels onto images from Mars spacecraft.

NASA also is developing its own cloud computing technology known as Nebula.  Nebula is an open source project that the space agency will use for building shared services, storage capacity, and computing cycles to reduce its costs.  According to a CIO.com story on the project, Nebubla will let users throughout NASA can unilaterally provision and manage IT resources for low-security applications on demand. Next year, IT will launch Nebula’s platform as a service: a shared development framework, code repository and set of Web services that developers can use to deploy secure, policy-compliant software-as-a-service applications.  NASA has spent more than $10 million on the project, but it will be another year before the return is clear.

Share
Posted in Cloud Computing | Tagged , , , , , | Leave a comment

A Closer Look at Cloud Hosting

You may have already heard of cloud computing; but the question is, do you really know what it means? Google Docs and Apple’s MobileMe are just some of the popular examples of this concept. Another innovation has entered the picture – cloud hosting.

Basically a website hosted on clustered servers where online operations are not concentrated to a single server. Security, load balance and hardware resource are handled in a virtual environment. Your website has access to the processing power not only of one server but a cluster of servers that are distributed in real time.

Cloud Computing Defined

To fully understand the concept of cloud hosting, we need to define and understand cloud computing. Cloud computing simply refers to applications and processes held on, and delivered from the internet. All the data that you create and use within these applications and processes are stored online. You can also access these data from anywhere you have an Internet connection. Its services vary from full virtual machines running in the cloud to the calendar application that you can access from a web browser. The distinctive characteristic of cloud computing is that the applications and the stored data are held on the Internet, and not on one computer. It is actually a cluster of computers that act as one whole. You get to use the application and the data from anywhere as long as you have access to the Internet.

Cloud Hosting Defined

The next question would be – How does that relate to cloud hosting?

In cloud hosting, we go on a different but somewhat related plane. This type of hosting service allows you to upload your web applications and associated data to the hosting service. The web application is ‘distributed’ across a cluster of servers. Since your web applications and associated data are hosted by the cluster, any failure or downtime on any one of the servers should not affect your applications. You should also benefit from the levels of bandwidth and processing power designed for applications which field more traffic than your own. This simply translates to unlimited bandwidth, processing power or storage as a result of a hosting system with vast amounts of space capacity.

Cloud Hosting

Cloud Hosting

Shared Hosting vs Cloud Hosting

Cloud hosting may sound like shared hosting as you are looking at hosting service shared among several websites. However, there are a lot of differences defining the superiority of cloud hosting.

Shared hosting handles your web application and associated data on one big server along with tens and possibly hundreds of other websites owned by other people or companies. You are exposed to security risk and share among other websites the bandwidth available to that one server.

In cloud hosting, all websites and web applications are uploaded and shared across the entire infrastructure. The service provider decides which sites need processing power and bandwidth by detecting in real time how much traffic they are receiving. This setup provides lots of space capacity in the system. If your website suddenly requires processing power and bandwidth, the service provider then responds in real time by adding the resources required.

Share
Posted in Cloud Servers, Cloud Sites | Tagged , , , , , , , | Leave a comment

AspireSite Cloud Servers now supports Ubuntu 10.10

We’re happy to announce that 64-bit Ubuntu 10.10 (Maverick Meerkat) images are now available for AspireSite Cloud Servers users.

In order to take advantage of these images, you can add a new Cloud Server to your account or rebuild an existing one.  Keep in mind that the rebuild process will erase any existing data on the cloud server.  You can also upgrade your server from the command line using Ubuntu’s standard tools.

Share
Posted in Cloud Servers | Tagged , , | Leave a comment

Announcing the Bulk Import Beta for Cloud Files Customers

Have you been looking for a simpler way to get a lot of data into the cloud? Your life is about to get easier, as AspireSite today announces the Bulk Import Beta for Cloud Files. We’ll upload your files directly at the data center, saving you time and money.

Instead of watching your many terabytes of data slowly upload over your standard office connection, simply send your device to us, and we’ll do it for you, painlessly—and much faster. And you won’t have to pay for all that bandwidth, either.

By using Bulk Import for Cloud Files, you get to make data migration (or your customers’ migration) someone else’s job, freeing you to do what you do best. AspireSite provides continuous updates on the progress of your device and its data, and a dedicated migration specialist offers Fanatical Support the whole way through.

All current Cloud Files customers can take advantage of Bulk Import by contacting your account manager or a support representative. Or if you’re a Managed Hosting customer, Cloud Files Bulk Import might be the perfect way to access a large amount of data—just set up a Cloud Files account and send us a request for Bulk Import. Then you’ll ship your device to our data center, and we take care of the whole import: it’s simple, safe, and you’ll save a bundle on bandwidth.

Accepted devices include USB 2.0, SATA, and eSATA. The file systems we can accept are NTFS, ext2, ext3, ext4, and FAT32.

The Bulk Import for Cloud Files Beta is available now and we look forward to serving you and learning how we can improve the offering for general availability in the future. .

Share
Posted in Cloud Files | Tagged , , , | Leave a comment