ST. LOUIS, MO, December 13, 2004 — Demonstrating its growing strength as one of the world’s largest IT utility services providers, SAVVIS Communications (NASDAQ: SVVS) today provided leading industry research firm IDC with details about the advancement of its virtualized utility services delivery platform that was launched earlier this year.
Leveraging more than 10 years of development, SAVVIS has virtualized its core offerings to encompass every piece of the IT infrastructure – network, hosting, storage, and compute – enabling it to deliver a broad suite of managed utility services. These virtualized, on-demand services require no up-front capital expense for the customer and can provide tailored service levels to match the unique needs of each application. This enables businesses to become more agile by easily and cost-effectively scaling their IT infrastructure as business needs change.
SAVVIS’ virtualized approach and utility services introduces a new purchasing model for information technology that allows customers to shift from capital expense spikes for hardware that might get used, to a smoother payment stream for IT functions as they are used. Use of these services has proven to significantly reduce customers’ annual operating costs and eliminate a majority of the associated capital expense.
Since the formal introduction of its virtualized services delivery platform in April, SAVVIS has deployed 308 virtual servers and 61.5 terabytes of virtualized storage as part of existing and new customer installations. SAVVIS has also been deploying virtual network and security services, including firewalls, load balancing and SSL accelerators and has successfully implemented 658 virtual firewalls to date. Future plans call for adding server “capacity on demand” and distributed denial of service (DDOS) mitigation.
SAVVIS also delivers private network services, which extend to 47 countries. These services are built on advanced proprietary systems that essentially virtualize all network routing and security and deliver fully-meshed, any-to-any connectivity. As part of these private network solutions SAVVIS has deployed more than 25,000 virtual network-based firewalls globally.
With the virtualized utility services platform, SAVVIS can roll out a fully-configured IT environment for a variety of applications that includes server, storage, network, firewall, intrusion detection, load balancing, and web acceleration in approximately 30 minutes and has demonstrated this to leading industry analyst firms such as Gartner, Inc., Tier1 Research and IDC.
“GLOBALconect provides a secure web-based data base management system for its law firm, corporate and government clients that enables them to easily manage massive amounts of highly sensitive data,” said Ian Campbell, Principal and Director of Business Development, GLOBALconect. “SAVVIS’ virtualized utility services provides critical storage and server infrastructure and allows us to scale up all of our IT needs in minutes, entirely avoiding the delay and expense of adding capacity and hardware that traditional networks require.”
In the U.S. market, where SAVVIS first launched its virtualized IT services delivery platform, premiere companies such as Deluxe Entertainment and Innovest Systems, GLOBALconect, SciVantage, Inc., and Sonitrol Corporation are all using the services to run mission-critical business applications. A majority of SAVVIS’ virtualized utility sales are coming from upgrades within its existing customer base, including many co-location hosting customers that were acquired as part of the acquisition of previously with Cable & Wireless, whose U.S. assets SAVVIS acquired in March. SAVVIS recently launched the virtualized platform in the United Kingdom where it is generating equally strong interest from customers.
In the United States, IDC forecasts that the market for utility-based virtualized services is growing rapidly and will increase from $800 million to $3.6 billion in 2007. One reason for this growth is that virtualized services deliver a rapid payback on new investments, while protecting previous ones. Virtualized services complement and enhance existing hardware and network infrastructure without forcing companies to make additional capital expenditures.
"The emergence of service delivery platforms that use virtualization technologies is a game-changing development for the IT industry,” said Melanie Posey, Research Director at IDC. “The new delivery model enables service providers like SAVVIS to significantly reduce the costs of service provision and scale customers' IT infrastructures with greater agility. But more importantly, virtualization platforms allow enterprises of all sizes to switch from a capital-expenditure model to a more cost-effective operating-expenditure model. The combination of SAVVIS’ global private network and automated management platform is an ideal vehicle for the delivery of next-generation managed utility services.”
“We were looking for an affordable managed hosting solution that provided the uptime and reliability that would enable us to deliver a superior web presence for our business,” said Mark Medley, Director of Information Systems, Sonitrol Corporation. “SAVVIS’ virtualized utility services provided a rapid and seamless deployment and enabled us to lower our costs while improving performance, a combination not normally found in a fully-managed hosting solution.”
SAVVIS’ virtualized utility services are made possible in part through technology partnerships with Egenera, Inkra Networks, 3PAR, and Nortel Networks, who contribute key virtualization technologies that power the end-to-end platform.
SAVVIS Communications (NASDAQ: SVVS) is a global IT utility services provider that leads the industry in delivering secure, reliable, and scalable hosting, network, and application services. SAVVIS’ strategic approach combines the use of virtualization technology, a utility services model, and automated software management and provisioning systems. SAVVIS solutions enable customers to focus on their core business while SAVVIS ensures the quality of their IT infrastructure. With an IT services platform that extends to 47 countries, SAVVIS is one of the worlds’ largest providers of IP computing services. For more information about SAVVIS, visit: .
This document contains 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 for the year ended December 31, 2003, as filed with the Securities and Exchange Commission on February 24, 2004, and all subsequent filings. SAVVIS assumes no obligation to update or supplement forward-looking statements.
Carter B. Cromley
Ricochet Public Relations