NEW YORK — July 29, 2009 — Responding to growing customer demand for proximity hosting and internet infrastructure services, along with low latency connectivity to major financial exchanges, Savvis, Inc. (NASDAQ:SVVS) today announced plans for a significant expansion to its flagship financial services hosting facility, Savvis NJ2, in Weehawken, N.J. The expanded facility, Savvis NJ2X, combined with Savvis NJ2, creates a powerful financial data center complex that extends Savvis’ footprint in the highest demand market for its services, the New York-New Jersey financial hub.
Savvis has completed a transaction to lease space adjacent to Savvis NJ2 that will directly connect via fiber and yield approximately 105,000 square feet of raised floor for the deployment of high-performance hosting and low latency financial exchange connectivity for the financial services industry.
The expansion enables customers to expand their current offerings and for Savvis to attract new customers. Along with Proximity Hosting solutions, the expanded facility will offer customers the opportunity to utilize other Savvis services designed specifically for the financial community, including web solutions, software-as-a-service (SaaS) and cloud computing.
“The demand in the marketplace for financial IT infrastructure continues to grow as companies outsource to trusted providers,” said Phil Koen, Chief Executive Officer of Savvis. “Today’s news creates a strong financial data center complex with two of our state-of-the-art facilities making Savvis the destination of choice for financial services companies.”
Initial plans call for:
- Approximately 35,000 square feet of raised floor that is expected to be completed by the second quarter of 2010
- Expansion potential for an additional 70,000 square feet of raised floor
- A direct connection between buildings, which will allow customers to host trading applications to several liquidity centers via Savvis Proximity Hosting solutions
- Four floors, with the second floor build-out occurring in 2009. An expected limited capital investment of $10 million in 2009, within the range of current company guidance for the full year, and $12 million in 2010
The new data center complex is in response to the continued market demand for hosting services. Gartner estimates the current market for hosting services will grow from $46.4 billion in 2009 to reach $150.1 billion in 2013 (Gartner’s Forecast: Sizing the Cloud; Understanding the Opportunities in Cloud Services, published March 18, 2009.)
Savvis currently operates 28 data centers globally encompassing more than 1.4 million square feet of raised floor space designed to support enterprise IT operations. In addition, Savvis was recently positioned as a leader in the Gartner Magic Quadrant for Web Hosting and Cloud Infrastructure (on Demand), 2009, and can be accessed at www.savvis.net/magicquadrantleader.
Savvis, Inc. (NASDAQ:SVVS) is a global leader in outsourced internet infrastructure services for the enterprise. More than 4,000 customers, including 40% of the top 100 companies in the Fortune 500, use Savvis to reduce capital expense, improve service levels and harness the latest advances in cloud computing. For more information visit www.savvis.net
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from Savvis’ expectations. Certain factors that could affect actual results are set forth as risk factors in Savvis’ SEC reports and filings, including its annual report on Form 10-K and all subsequent filings as well as the risk that potential product cost and performance benefits may not be realized for any particular customer. Savvis assumes no obligation to update or supplement forward-looking statements.