Saturday, September 26, 2009

Bids Preps for Datacenter Move

from Dealing with Technology:

>>Bids Preps for Datacenter Move

NEW YORK-By the end of the year, operators of alternative trading system (ATS) Bids Trading expect to relocate their systems to their own datacenter facility within the Equinix NY-4 datacenter located in Jersey City, N.J., according to Bids officials.

Currently, Bids' technology infrastructure is being hosted by Nasdaq OMX in a Secaucus, N.J., facility.

Friday, September 25, 2009

Aussie data centres brace for dust storm barrage

from Nearshore Journal:

>>Aussie data centres brace for dust storm barrage - ITNews

Data centres in Sydney and Brisbane have shut off external ventilation systems, restricted loading dock access and attended false alarms after a major dust storm choked the cities today.

Macquarie Telecom, Equinix, ac3, manageNET and AAPT outlined a number of preventative measures taken in their respective data centres to prevent dust ingress.


Equinix Australia managing director Darren Mann said there had been no customer visits to the data centre as a result of the storm.

Mann said the facility had changed the sticking mats at entrances more frequently to catch any dust off pedestrian traffic moving in and out of the suites.

“We also limited the opening times of delivery shutters,” Mann said.

Air conditioning vendors were also on-site to conduct visual checks of the air filters, he said.

Fiber Network Just For Connecting Exchanges and Data Centers in NY, NJ Soon to Launch

from Information Management and SourceMedia:

>>Fiber Network Just For Connecting Exchanges and Data Centers in NY, NJ Soon to Launch

RCN Metro is laying fiber for a low-latency co-location and exchange-only network connecting the major bourses and data centers in the New York and New Jersey financial hubs, according to John Romagnoli, senior manager of product development at RCN Metro.

The firm will deploy services on the network by year end, he said, eventually offering speeds up to 100 gigabytes per interface. The project will be “100 percent complete” in six months, he said.

First described yesterday at the Wall Street Technology Association’s (WSTA’s) Emerging Hot Technologies conference in New York, Romagnoli, said “Project Mercury” will be the first to offer Wall Street “extreme low-latency, fault-tolerant and high-capacity” using “ROADM” provisioning technology.


A network map Romagnoli provided at the conference showed the system connecting Bats, Nasdaq, NYSE Euronext; and co-location data centers offered by Equinix, Sungard, Switch and Data, Savvis, the Secure Financial Transaction Infrastructure (SFTI) and Telx.

Thursday, September 24, 2009

Barchart Expands Data Centers to Equinix and Amazon EC2

CHICAGO–(BUSINESS WIRE)–, Inc., a leading provider of market data and information, today announced it has completed expansion into two new data center facilities, providing Barchart customers with additional connectivity and hosting options. The first is expansion into the Equinix data center which provides Barchart customers with direct access to major North American financial exchanges. The second is expansion into the Amazon Elastic Computing Cloud (Amazon EC2) which provides Barchart with the technology benefits of elastic cloud computing capacity.

The addition of the two new data centers provides Barchart with additional infrastructure and access points to support its expanding market data feed and web-based businesses. Barchart will support a variety of services from each data center, including institutional and retail market data feeds, as well as clients receiving website content and hosting services. The expansion also coincides with the upcoming launch of the redesigned ( which has been a leading financial website since 1995.

“Offering our data feed clients additional connectivity options has become increasingly more important, as has the ability to immediately scale up infrastructure for needs like operating and hosting website content for third-party sites,” said Eero Pikat, President of Barchart. “Both Equinix and Amazon EC2 provide ideal solutions for these needs,” said Pikat.

To learn more, visit

Wednesday, September 23, 2009

Two Exchanges to Move to Secaucus Next Year

from Securities Industry News:

>>The CBOE, aka the Chicago Board Options Exchange , expects to launch its startup all-electronic exchange in the Secaucus data center of Equinix in the first quarter of 2010, according to David Gray, head of its business development in the New York area.

The CBOE’s C2 exchange, as it will be known, will be joined there by the Boston Options Exchange, which expects to move to the Equinix center in Secaucus in the first quarter of 2010, according to Todd Rich, BOX’ vice president of sales and marketing.

The C2 and BOX matching engines will join the International Securities Exchange there, which said it expects to go live at the same facility by November of next year with new core trading technology. The ISE will operate there then with “massive capacity” on its rebuilt technical platform, according to director Jeanine Hightower.

The Hightower, Rich and Gray comments came at an industry update held Tuesday at the Marriott Marquis by the Options Industry Council and the Futures Industry Association.


The ISE operation in Secaucus will operate at “extreme low latency,’’ Hightower said, without defining it. The new platform, she said, will succeed technology supplied by Nasdaq OMX, a competing exchange operator.

Also operating at the Equinix hosting center in Secaucus will be the Boston Options Exchange, which recently dropped the “maker-taker” fee model and went back to the “pro rata” model.

“Clearly, we all see a benefit to that particular data center,’’ Rich said of the Equinix facility in Secaucus. He did not elaborate.

Already at Equinix in Secaucus: Electronic exchange pioneer Direct Edge, as well as NYSE Euronext’s Arca largely electronic exchange.

Tuesday, September 22, 2009

Sabey Addresses Tukwila Flood Concerns

from Data Center Knowledge:

>>Sabey Addresses Tukwila Flood Concerns

Intergate.East is home to data centers for Microsoft and Internap and is separated from the Green River by Highway 599, which is expected to serve as a buffer for any flood waters. Sabey addressed the issue in a letter to tenants (PDF) last month.

Cloud Hosting Provider Virtacore Systems, Inc. Launches Website

Simplifies 'Always-on' Virtualization and Private Cloud Services for businesses of all sizes.

ASHBURN, Va., Sept. 22 /PRNewswire/ -- Today Virtacore Systems, Inc. launches a new website and community to help solve the complexities of virtualization and cloud computing technologies for businesses of all sizes.

Thomas Kiblin, CEO and Founder, believes the complexities of virtualization can be explained and tailored to each individual business. "We view our relationship with our customers as a partnership to leverage the best web technologies to help improve their business. Whether businesses are new to web technology or familiar with hosting concepts, we will educate and explain everything needed in order to maximize their hosting experience."

Virtacore Systems, Inc. provides a customized approach to virtualization technologies. Benefits include increased flexibility, reliability, and security as well as reduced infrastructure, footprint, and facility costs. Virtacore's consultative process gives company IT managers peace of mind and a virtual engineering team to assist them with feasibility, day-to-day management, disaster recovery, and capacity planning.

"The Virtacore Systems, Inc. difference is choice," said George Naspo, advising board member. "Numerous hosting providers in the market deliver a fixed cloud with no choice of operating system or virtualization vendor. Many customers have switched from expensive fixed clouds, with little or no support, to Virtacore Systems, Inc. who offers customization, flexibility and individual service. Companies looking to reduce overall hosting costs can benefit from Virtacore Systems, Inc."

About Virtacore Systems, Inc.

Virtacore Systems, Inc. is a leading provider of "always-on" virtualization and cloud hosting solutions for business customers in the U.S. Virtacore Systems, Inc. manages over 10,000 virtual machines deployed inside state-of-the-art Equinix IBX data centers connected to a custom network of top-tier bandwidth providers. The company provides educational resources to help individuals learn the technology and virtualization options they offer. Virtacore Systems, Inc.'s hosting consulting and engineering services meet the complex hosting requirements of businesses.

Monday, September 21, 2009

Immersion (NASDAQ: IMMR) Gets A Catalyst: Ramius Files a 13D

from 52 Wall Street:

Immersion was one of the original stocks selling below cash, although was deleted from this group because (1) it no longer sold below cash, and (2) the company announced an internal accounting review of its medical segment. I suggested in a recent post that Immersion (NASDAQ: IMMR) may be worth looking at again down the road. Now that Ramius has filed a 13D, that time has come far earlier than I expected, and this filing was the featured 13D in Barron’s this weekend.

Immersion is basically a situation where some capital intensive assets (the medical segment and parts of the touch segment) are masking some good assets (the royalties and licensing mainly from the touch segment). Some extra protection is also provided as Immersion has a lot of cash on its balance sheet, although the company has not filed a quarterly report since May 2009 due to the accounting investigation. I think that the main question here is how to value Immersion on a sum-of-parts basis, which fortunately is possible as the company breaks out its segment data. However things get a little more complicated here because the touch segment has a product sales revenue stream and development contracts revenue stream that does not produce as high of margins as the licensing and royalties revenue stream, and both segments report negative operating income. Thus, a better way of thinking about how to value Immersion could be to value the company’s patents using the licensing and royalty revenue streams as a proxy.


Back of the Envelope Valuation

Assuming a 5-year average for the licensing and royalty revenues in our valuation amounts to ~$10M. I use the 5-year average here because although licensing and royalty revenues typically have very high margins and are close to pure profit, there are still some expenses associated with this activity, and this helps to act both as a proxy for the potential expenses here and keep our estimates reasonable but conservative. A median estimate using sensitivity tables for the royalty and licensing revenues amounts to around $99M.


As of the company’s last 10-q filing in May, Immersion has just over $80M in cash and no debt. The medical assets I will assume are worth the stated book value of around $10M, with operating leases worth about $8.8M based on a gross up of 8x 2008 operating lease expense. This puts Immersion’s valuation at ~$180M, or $6.44/share. The risk reward scenario looks attractive here.

Disclosure: I do not own shares in Immersion (NASDAQ: IMMR).