By Khanzode Smith
Fri 09/09/2011 6:44 pm EDT
No "> (Reuters) – Internap Network Services Corp., a provider of services that help improve Internet connectivity, it is not for sale at a time when a wave of consolidation is sweeping the rapid growth in telecom network industry.
Bankers and analysts had identified as a potential target for Internap greatest rivals amid a dispute hit strong demand for ' cloud computing ' that enables remote access to computing power and data over the Internet.
"I'm not buying the company, and we listen to all offers that come and respond accordingly," CEO Eric Cooney of Internap told Reuters.
Analysts from AT&T Inc, Windstream Corp., Inc of CenturyLink and border communications are all on the prowl for acquisition opportunities in space.
"At this stage the best value for our shareholders is to continue to execute our plan of organic growth," Cooney said.
A series of promotions they called this year, including the provision of $ 1.4 billion of Verizon Communications Inc for more recent acquisition of $ 2.5 billion business telephone and Terremark CenturyLink Inc., of Savvis.
"We believe that Internap represents purchase a convincing as Opera telecom companies with solid defensive growth prospects, has no debt and the recent fall in stock," Clayton Moran, an analyst at Co Benchmark, told Reuters.
Earlier this year, rival Rackspace also said that he was committed to stay independent. Other players such as Equinix, InterXion Holding NV and private companies SoftLayer Technologies Inc. and Joyent attractive targets are also considered by some analysts.
Cooney was the former CEO of TANDBERG Television and oversaw its acquisition by Ericsson group in 2007. TANDBERG he left to become CEO of Internap in March 2009 and played a key role in driving business growth of enterprise data center.
DATA CENTER GROWTH OF EYES
Originally, a service provider, internet protocol (IP), Internap began providing its own data centre services under the leadership of CEO Cooney. The company also did away with their business that sold primarily data centers to other providers.
Internap is betting on a growing demand for web hosting data centers-large warehouses lined wall-to-wall storage servers with powerful computer, marking a change of your business, IP services.
"While" IP services is strategically important to us ... in terms of revenue, financial or the dollars of growth will come prominently next to the data center, Cooney said.
The company's revenue was almost equally divided between internet protocol (IP) services in its last quarter reported on 28 July. IP services revenues remained stagnant or declined in the past year, but its data center business has fared much better.
Cooney expects the enterprise data center of Internap outpacing market growth rate of 15-20 percent.
Demand for data center services has been driven by an explosion in telecommunications and the growing popularity of cloud computing.
"Increasingly we will see much more like Rackspace, Savvis or Terremark did before I have acquired, in terms of revenue growth and profitability," he said.
Internap will add 42,000 square meters to develop its capacity to 141,000 square meters, as it eyes growth in 2012 and beyond.
The company's shares have dropped about 38 percent since published its Q2 results in late July. They closed at $ $4,54 on Friday on the Nasdaq. (Reports by Smith Khanzode in Bangalore; Edited by Viraj Nair)
View the original article here
0 comments:
Post a Comment