Nice. :thumbsup

Congrats.

:)

Thanks for taking the time to explain! I'm not surprised that a colocation or datacenter would measure revenue by the square foot. As I understood Jupiter, I was under the impression they were predominantly complex managed hosting and that their space (as I recall from their webcams) was consistent with a space layout of 20-30sq feet per cabinet so I figured that the per square foot figure was likely an apples to apples comparison.

With our relocation a year ago we made the decision to put customers first and stay focused purely on managed hosting instead of cost savings on bulk space. Leaving the environmentals up to a global data center company like Terremark and choosing their flagship site in Miami has worked out fantastic. I can't imagine your headache having to retrofit a datacenter without a raised floor that was originally designed for a DC power buildout. With so much energy required to provide managed services, we felt it was totally worth paying a premium for space with a 100% SLA on cooling and power.

Tony, I like to say that if you just watch the watts the amps will take care of themselves :)

Cheers,

Brad

Congrats to Ray.

Uhm..... Congrats I guess?

Maybe I am wrong, but 15.5 Mil for alabanza and jupiter really doesn't seem like alot of $$$. I would venture between the two of those companies that they should have been billing alot more than that. So either they or one of them had alot of debt in which navisite assumed which washed away some of the cash buyout or one of the companies wasn't very healthy and they got it for a real steal. So whatever happens with jupiter (the only one of the two affecting the kind folks of this board) things are surly to be very different in the future.

Navisite owns many of its own DC's so you will might very well see a forced relocation to a new DC because Jupiter colocates with VSNL in CA or you will see all new sales stopping in the current DC and new sales going into a new dc with an eventual move to a new DC once your (the client) or their contract is getting ready to expire.

There are alot of variables to consider in determines jupiters future. Especially in dealing with a US-Based public company like navisite in which the rules of the game are very different.

But typically in the past when public hosting companies bought private hosting companies migrations did happen.

Just my .02 cents I could be wrong.

I just keeps it simple and host me servers wit da webair.com crew best in da bidness :pimp

Yup, when I saw that my first thoughts were, Wow that's low... so "someone" must've been hurting badly :error...
Honestly, almost hard to believe it sold for that low... Alabanza was pretty big so a couple million to them off that $15.5... leaves you with only about $10M~+ for Jupiter? :uhoh Ouch...

I'm curious as to how $10million = ouch? I've never run a hosting company but from the owners I've talked to (Ray included) it doesn't sound like a fun time. if someone walks up and cuts you a check for $10,000,000 that's some serious coin. Ray will never have to work another day in his life. I don't get how $10,000,000 for a hosting company is low. Most hosting companies sell when they are about to go under and get nothing for them. Ray was smart and cashed out.

Congrats Ray! :thumbsup

:1orglaugh Only when they shift it a planet nearer to Mars Hosting.

I have to agree with Shap on this point. I think there's some serious underestimation of the work involved in generating that type of enterprise value. Outside of that, those suggesting 10mil+-? is low I doubt have ever seen even a fraction of that type of money in their own bank account. Congrats to Ray!

Brad

there isn't any better candidate other than Poppy.. at least that we know of.
Congrats to the "father of Anna Nicole's baby" :1orglaugh:1orglaugh

armchair Quarterbacks:1orglaugh

I am not saying the $$ is low. I am saying that it seems that jupiter wasn't making as much money as on a yearly basis as everyone thought. Typically hosting company buyouts are based on a multiple of gross revenue or in this case a multiple of EBITDA. The total number of 15mil sheds light on the fact that one of these company Jupiter or Alabanza wasn't making nearly as much as anyone thought. And I honestly doubt Navisite will waste time and money doing a 2 to 3mil transaction so I would lean more towards an almost even split of 7.5 and 7.5mil each which sounds more realistic. But then again this is all speculation.

If Jupiter was acquired for say $8mil that would put them at 1.5 to 2.5 million EBITDA. How well did people think they were doing?

Exactly Shap, in my experience offers are 5x EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) these days... good estimation!

Congrats to all involved! Whatever the reason they felt it was the right time & deal for them. It's all relevant.

JFK - :1orglaugh:1orglaugh:1orglaugh

I guess I and maybe other people on this board felt they had more revenue than that.

HUH ??? :winkwink:

nice amount :)

Revenue isn't what we are discussing.

LMAO at people who think $15M for two hosting companies is low.