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ISSUE NO.40 SEPTEMBER 2009

INSIDE DCN

New Research – 2Data Centre Market Performance – 3-5Data Centre Build, Upgrade & Expansion – 6Data Centre Deals – 10 M&A/Financials – 12Cloud – 13Green & Innovation – 13-14Events/Dates for Diary –14-15

Published by BroadGroup

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DATA CENTRE SECTOR OUTPERFORMINGMAJOR MARKET INDICESA new capitalization-weighted index of large companies quoted companies on exchanges in the United States, Europe, Australia and Asia that are directly involved in the data centre sector has been launched by Data Centre News. This index consists of the large data centre companies and large, quoted, global companies whose performance is directly related to the data centre industry. M&A activity in the sector will also be tracked with the latest deals described including valuations and commentary.

The index reveals that so far few large scale data centre companies, or those focused on data centre related services, are listed on the London Stock Exchange and there are only a small number in Australia and the Far East. This highlights the dominant positions of US companies in the sector. It also suggests the opportunity for growth in both regions.

Despite a downturn in commercial property values, data centres continue to attract high levels of investment with more than USD15 billion globally committed in the last 12 months, according to BroadGroup research and more projected to follow.[See pages 3-5]

MAURITIUS CONFERENCE TO PROFILE SEA WATER COOLING FOR DATA CENTRES

At the end of this month, a conference in Mauritius will profile a new sea water cooling system for data centres. The conference which has as it patron the Board of Investment Mauritius, will showcase its Eco-Park project and the competitive advantages it offers as a location for disaster recovery, outsourcing, investing and building green data centre facilities.

It will also profile new sea water cooling techniques for data centres. At a time when data centres confront the global challenge of power and cooling, the Mauritius Eco-Park project, will aim to exploit the position of the island on the path of a deep sea current, through technologies and processes that are sustainable and environmentally friendly.

The temperature of deep water samples beyond 1000m is about 5 degrees centigrade at 1000 m below sea level about 4,900 m from the shore. This temperature profile enables the project to gear-up to the concept of seawater air-conditioning (SWAC). SWAC has actually been used in several locations including Hawaii and Curacao.

The conference is complimentary for CIOs, IT directors and Data Centre operators and owners. For further see www.datacentres.com/dcsmi

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NEW RESEARCH

INNOVATIVE CONTRIBUTION TO REDUCING ENERGY COSTS IN DATA CENTRES FROM MITA new paper, Cutting the Electric Bill for Internet-Scale Systems, argues that existing distributed systems should beable to exploit the variation in electricity prices and that in doing so, data centres could achieve significant economic gains. The study by researchers at MIT, Carnegie Mellon University, and managed services company Akamai, suggests that Internet businesses could reduce their energy use by rerouting data to locations where electricity prices are lowest on a particular day.

“Starting with historical electricity prices, for twenty nine locations in the US, and network traffic data collected on Akamai’s CDN, we use simulation to quantify the possible economic gains for a realistic workload. Our results imply that existing systems may be able to save millions of dollars a year in electricity costs, by being cognizant of locational computation cost differences.”

MIT formed the idea of a smart routing algorithm that would track electricity prices to reduce costs and approached Akamai to conduct a trial and obtain real-world data. Akamai processes some 275 billion web requests per day and its traffic data provides a way to model the demand placed on large Internet companies. The researchers found large fluctuations in pricing across relatively short timescales, across diverse locations across the US. The routing algorithm was applied to exploit daily and hourly fluctuations in electricity costs across the country and computed the physical distance needed to route information - given the higher costs to move data further -against the likely cost savings from reduced energy use. The data revealed that in the best case scenario - one in which energy use is proportional to computing - a company could reduce energy consumption by 40 per cent.

INVESTMENT IN DATA CENTRES SUSTAINING GROWTH AS ROI COMES UNDER SPOTLIGHTAccording to A new Global Data Centre Survey commissioned by CommScope, with contributing sponsors Brocade, Eaton and Intel, almost a third (32%) of all organizations surveyed worldwide are planning or building new data centres, while more than four out of five (83%) existing data centres continue to receive investment for infrastructure and technology projects. The survey suggests that ROI is under the spotlight as, in the backdrop of the current economic environment, almost two thirds (65%) of respondents were required to demonstrate a specific return on the investment before their data centre projects were approved. The survey was conducted with more than 730 IT professionals from 54 countries on trends in data centre equipment, design and future development. George Brooks, director, Enterprise Data Centers, CommScope, says the survey reveals that data centres are viewed as mission critical, and organizations continue to invest accordingly to ensure quality, performance and intelligence are successfully supporting business goals. Interestingly, of those respondents installing new fibre cabling in their data centre, the shift to 10G and 40/100G laser optimized multimode fibres is accelerating with data centres installing OM3 at a rate of 31 percent and installing OM4 at a rate of 19 percent.

“Data centres continue to receive investment for power and space saving technologies. They include blade servers that are more compact and energy efficient than previous types, and virtualization that allows more applications to run on each server. These result in cost savings due to a reduction in power and space requirements.”

The CommScope study reveals that the recession is not damping the demand for on-line information and applications that is driving data centre expansion and sees growth in image and video databases which is increasing the requirement for higher bandwidth infrastructure within the data centre.

“As servers get smaller and support more applications, connection densities and bandwidth will have to grow dramatically.”

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DATA CENTRE MARKET PERFORMANCE

A NEW MONTHLY COLUMN BY AHV ASSOCIATES LLC PERFORMANCE

Company Name

Exchange Ticker PE Ratio Last Close 1 Month

1 Quarter

1 Year

Jan 01 2009 to Date

Telecity LSE TCY.L 25.79 340.00 6.92% 11.48% 92.91% 92.91%Equinix NASDAQ EQIX 62.33 82.03 0.37% 8.56% 56.85% 56.85%Rackspace NYSE RAX 72.90 12.37 -11.89% 9.96% 125.32% 125.32%Savvis NASDAQ SVVS N/A 16.00 10.27% 22.51% 176.34% 176.34%Iomart LSE IOM.L N/A 45.00 20.97% 21.62% 76.47% 76.47%Terremark NASDAQ TMRK N/A 5.17 -17.01% -3.90% 39.73% 39.73%Switch and Data

NASDAQ SDXC N/A 12.72 -8.42% -3.56% 85.96% 85.96%

Internap NASDAQ INAP N/A 3.00 -1.32% -3.54% 18.11% 18.11%Digital Realty Trust

NYSE DLR 71.09 41.57 2.52% 15.41% 38.20% 38.20%

DuPont Fabros

NYSE DFT 25.00 12.59 17.66% 38.35% 576.88% 576.88%

Navisite NASDAQ NAVI N/A 1.86 36.76% 126.83% 447.06% 447.06%Macquarie Telecom

ASX MAQ.AX 19.36 3.50 16.67% 66.67% 250.00% 250.00%

EU Networks

SGX H23.SI N/A 0.03 0.00% 0.00% 200.00% 200.00%

Cogent NASDAQ CCOI 25.77 9.36 12.91% 7.34% 43.56% 43.56%NetApp NASDAQ NTAP 25.96 22.15 -1.38% 19.28% 75.93% 75.93%Akamai NASDAQ AKAM 15.95 16.84 2.43% -22.86% 14.32% 14.32%Emulex NYSE ELX 20.00 9.69 6.13% -8.84% 49.08% 49.08%VMWare NYSE VMW 41.63 33.75 4.72% 9.08% 51.21% 51.21%SGI NASDAQ SGI 5.46 8.76% 0.55% 47.17% 47.17%Limelight Networks

NASDAQ LLNW 30.08 3.23 -18.43% -41.49% 36.86% 36.86%

Citrix NASDAQ CTXS 42.26 34.75 -2.39% 7.75% 51.88% 51.88%EMC NYSE EMC 27.82 15.54 3.19% 24.52% 50.73% 50.73%

AHV Datacentre Index

145.94 1.67% 10.56% 45.94% 45.94%

Data Centre Market Performance Tracker (August 2009) – Source AHV Associates LLC

DisclaimerThis report has been prepared and issued by AHV Associates LLP for publication in the United Kingdom. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. This is not a solicitation or inducement to buy, sell, subscribe, or underwrite securities or units. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment.

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Data Centre Index (August 2009) – Source AHV Associates LLC

Selected highlights include:

Equinix - Reported revenues of USD 213.2 million for the quarter, a 7% increase over the previous quarter, and a 24% increase over the same quarter last year. The performance was driven by an aggressive expansion strategy.- Purchase and acquisition of a 130,000 square foot (12,000 square metre) data centre in Frankfurt, Germany. The announcement came as Equinix continued its measured global expansion plan where the company is currently expanding in 10 of the 18 markets in which it currently operates. The site selected for the Frankfurt expansion is located in the southwestern region of the city and will be purchased by Equinix at a cost of approximately USD30 million (€21 million). Savvis - Reported its second quarter 2009 financial results, with revenue of USD219.9 million, compared to USD212.9 million in the second quarter of 2008. This performance was driven by their long term focus on managed hosting services.Switch and Data - Reported revenues for the second quarter ended June 30, 2009 increased 17.8% to USD49.4 million from USD41.9 million in the comparable period in 2008. This performance is attributable to increased customer demand, improved bookings and increasing margins.Navisite - The company previously announced that its plan to regain compliance with the NASDAQ listing rules through execution of a strategic plan that includes the potential divestiture of colocation assets, a reduction of its overall debt burden, and an increased focus on the core managed hosting, application management and enterprise cloud solutions. The company continues to pursue its strategic plan in order to improve the company’s balance sheet by reducing its debt obligations and focus on its core businesses for growth and performance.

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01 January 2009

01 February

2009

01 March 2009

01 April 2009

01 May 2009

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January 01 2009 - August 30 2009

AHV Datacentre Index

NASDAQ 100

FTSE 100

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Recent M&A Activity

Date Target Name

Acquirer Deal Value (GBPm)

Comments

2009-09-01 Kazeon Systems

EMC Corp 46.00 Kazeon Systems Inc is a US based eDiscovery software provider for corporations, legal service providers, government entities and law firms. The acquisition will help EMC to offer end-to-end, in-house eDiscovery and litigation ready solutions to its existing clients. Kazeon is a venture-backed company which received at least USD75 million in six rounds of investment from US backers.

2009-08-31 FastScale Technology

EMC Corporation

NA The acquisition of FastScale extends EMC's powerful EMC Ionix solutions for automating IT management across a unified infrastructure of storage, compute, network and virtualization resources, enabling customers to accelerate their transition from a physical to a virtualised data center. Fastscale is a venture backed company headquatered in California.

2009-08-10 SpringSource Global

VMware Inc.

225.00 The acquisition of SpringSource Inc. (a California-based software developer) is VMware's biggest-ever acquisition and will beef up a portfolio of programs that help companies run data centers. The deal is expected to hurt non-GAAP profitability through to at least 2010, but not have material impact on 2009 revenue. The deal is expected to close in September and be cash-flow positive in the first half of 2010.

2009-08-07 Data Domain EMC Corporation

1178.00 Data Domain will become the foundation of a new product division within EMC’s storage business focused on the development and delivery of next-generation disk-based backup, recovery and archive solutions. EMC has said that it expects this new division to continue growing revenue at significant double-digit rates achieving USD1 billion in revenue in 2010.

2009-06-17 IBRIX Hewlett-Packard

NA Hewlett-Packard Company has agreed to acquire IBRIX Inc, the US based provider of file storage solutions, for an undisclosed consideration. IBRIX employs around 53 people and has more than 175 enterprise customers spanning the different markets. The acquisition will help strengthen HP's share of the growing market for high-performance enterprise data storage, cloud storage, and file archiving. HP says this segment is growing 20 percent a year, faster than the markets for network-attached storage (NAS) and external storage.

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DATA CENTRE BUILD, EXPANSION & UPGRADE

EUROPE

ARSYS OPENS NEW DATA CENTRE IN SPAINArsys, an Internet services provider, has launched its new data centre in La Rioja, Spain, with the capacity to house up to 15,000 servers. The facility will include four data rooms, consisting of 250 square meters of raised floor space each, to be enabled progressively, within a 6,000 square meter building. This scalability of the technical area is one of the key innovative features of the data centre. The company anticipates spending €20 million over the next ten years. Some key features include thermal coating to keep the indoor temperature, duct systems to supply cold air from the outside to the inside of the facility and a liquid cooling system with high efficient cooling towers. In environmental terms, energy consumption by the air conditioning will reduce by 40% and achieve a Power Usage Effectiveness (PUE) of 1.45. Another feature is the possibility to install servers with different security and availability configurations.The facility is directly connected to Arsys’ telecommunications network, 2 redundant lines with a total capacity of 20 Gbps, which communicates with the Internet Exchange Points in Madrid, London and Paris. The company offers a range of services including collocation; shared, dedicated and cloud hosting; domain name registration; ecommerce services; business applications; marketing online tools and hybrid exchange email platform.

THESAURUS LAUNCHES DATACENTRE AS A SERVICEThesaurus has launched Datacentre as a Service (DaaS), at its facility in Milton Keynes. DaaS enables users to obviate the need for high upfront capital investment, and large datacentre costs and offers instead a bespoke service where organisations only pay for what is required with predictable costs. DaaS can also help to meet green targets, lower its carbon footprint and achieve the associated cost savings at the same time. Users do not require a fixed contract and can be scaled up or down at any time to match an organisation’s needs. If costs need to be further reduced or capacity needs to be increased, the service can be adjusted accordingly. Ongoing security threats are addressed by Thesaurus experts conducting security audits and compliance analyses in both logical and physical environments.

UK2 ACQUIRES NEW LONDON DATA CENTREWeb hosting provider UK2 has acquired a new data centre in London, UK. Located near Canary Wharf, the facility is fully fitted and features including dark fibre, power suppliers and will be managed all year round by UK2 staff. In the last three months alone, UK2 has deployed over 6,000 virtual servers using its cloud hosting product VPS.NET, which launched its beta trial earlier this year. UK2 provides a range of services, including domain name registration, web hosting, e-commerce, reseller, dedicated server and cloud hosting solutions.

BIT BUILDS 3RD DATA CENTRENetherlands based BIT is building its third data centre which will provide an additional 1200 m2 extra capacity. It already uses BIT-1, a 200m2 facility as a backup location. BIT-2 has 400m2 space which is used for servers.

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INTERXION EXPANDS ZURICH DATA CENTREInterxion, the carrier-neutral data centre operator will expand its ZUR1 data centre in Glattbrugg, Z�rich. In response to sustained demand for the company’s infrastructure and services, 2,650 m2 of high-power-density space will be added. The first phase of the new space is scheduled to be ready for service in early 2010. The data centre space, located next to Z�rich Kloten airport and ten minutes from the city centre, will offer redundant power and N+1 cooling. It has been designed using Interxion’s energy-efficient modular architecture, with free cooling and maximum-efficiency components as standard. It will support both standard and high-density power configurations for customer equipment. Connectivity includes direct access to over 30 carriers and network service providers as well as the SwissIX Internet Exchange.

VERIZON BUSINESS EXPANDS CLOUD COMPUTING CAPABILITIES IN AMSTERDAM DATA CENTREVerizon Business has extended availability of its on-demand, "cloud-based" Computing as a Service (CaaS) solution to the company's Amsterdam data centre. Additional CaaS locations are planned in the Asia-Pacific region in 2010.The service, which leverages its IP infrastructure and data centres enables mid-market and larger companies to use a Web-based portal to employ computing resources in the quantities and duration dictated by the companies' business needs. As a result, businesses pay only for the resources used and avoid having to build out for peak capacity requirements by buying new equipment and adding staff. The Amsterdam location particularly benefits companies doing business in Europe and elsewhere that need to operate under a "safe harbour" privacy framework that calls for a European-hosted location, or want to use facilities located closer to their European locations. The company has developed Verizon Cybertrust Security and its data centres are also audited for physical security. Security features have been built into its CaaS offering. These include secure connections to customer-provisioned resources, as well as a multi-tiered network with a virtual firewall, and an audit trail for all changes. Customers can also opt for a third tier of optional, add-on security services including identity and access management, host intrusion detection, application vulnerability assessment, network application assessment, andprofessional security services.

LAMDA HELLIX ENDORSES EU CODE OF CONDUCTAfter successful evaluation, Lamda Hellix that is one of the first companies in Europe to sign the EU Code of Conduct for Data Centres both as a Participant and Endorser. The EU Code of Conduct for Data Centres was developed in response to the increasing energy consumption in the sector globally, predicted to increase by to 104TWh per annum in 2020 in Europe alone, and the need to reduce the related environmental, economic and energy supply security impact. The EU Code of Conduct for Data Centres is a code of Best Practices, Design and Metrics Methods aimed at stimulating operators, owners and their supply chain to reduce energy consumption in a cost effective manner without hampering the critical function by building awareness, development of practical voluntary commitments and supporting effective decision making. Lamda Hellix is the first operator in South East Europe to sign the Code and the company was recently awarded as the Best Regional Data Center Operator 2009 in Europe at the annual Data Centre Europe Awards Ceremony.

TELSTRA EXPANDS DATA CENTRES IN UKTelstra International is launching a new multi-million pound facility in Woking, UK, which will provide an additional 10,000 sq.ft of hosting space and is due to open in Q4 2009. The facility is designed to respond to customer needs to upgrade and adapt their IT systems to make use of technologies such as virtualisation and Software as a Service (SaaS). It will offer a wide range of managed hosting services, from managed storage to smart remote hands. Disaster recovery is delivered through resilient fibre optic cable feeds between Telstra International’s other UK data centres in Cambridge and London. Connectivity to Telstra’s global Next IP™ network gives access to the Telstra network and data centres in the Asia Pacific regions and the Americas.

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SIFY INDIA TO INVEST USD 100M IN DATA CENTRES OVER NEXT TWO YEARS Indian ISP Sify Technologies (also listed on NASDAQ) is planning to spend up to USD 100 million in data centre infrastructure over the next two years to supplement its four existing centres in Mumbai, Bangalore and Chennai.Its latest data centre, a 100,000 sq.ft. facility is located at Airoli, Mumbai and represented an investment of USD 36 million. The new facility has been built to the TIA-942 standard for structural design, network, and cabling, and the IS 1893:1984 standard for earthquake resistance. There are also multiple power backup systems, including a power sub-station located within the extended site premise, multiple power feeds, N+1 UPS and dedicated diesel generation sets.

NORTH AMERICA

APPLE TO BUILD GIANT EAST COAST DATA CENTREApple is reported to be in the process of building a 500,000 sq.ft data centre in Maiden in western North Carolina, (40m north-west of Charlotte). The company already operates a west-coast hub in Newark, California (109,000 sq ft) The estimated cost of build is said to be around USD 1 billion over 10 years. Energy costs are USD 0.04-0.05 per KW hour from Duke Energy.

HCL TECHNOLOGIES ACQUIRES NEW JERSEY DATA CENTREIndia based IT company HCL Technologies has acquired a data centre in Parsippany, New Jersey to expand its global footprint and provide near-shore services. It plans to invest USD15m in the facility. The company is upgrading the facility deploying eco-friendly technologies from leading vendors and acquiring certifications. The company already has a near-shore delivery network in the US with an operations centre in Raleigh, North Carolina and a global data centre delivery ecosystem.

NTT OPENS SECOND FACILITY IN SILICON VALLEYNTT America, a wholly owned U.S. subsidiary of NTT Communications Corporation, has launched a second data centre in the Silicon Valley Area of California. This addition expands NTT America’s data centre space in Silicon Valley by 15,000 square feet. The new data centre offers a range of managed services including Managed Security, Managed Storage, Managed Back-up, Remote Hands and Professional Services. The site, located in Santa Clara, meets seismic zone four specifications. It is equipped with redundant power feeds, and carrier-class uninterruptable and back-up power and has multi-gigabit interconnection to NTT America’s Tier 1 Internet Backbone, along with local carrier options.

INTERNAP TO SELF FINANCE DATA CENTRE EXPANSIONInternap has said that it will self finance expansion from its own cashflow to the tune of USD50m. Over the next year and a half the company intends to acquire, build or buy space in two or three markets. The focus will likely beat least one expansion of an existing market and one new market.

LATISYS EXPANDS CHICAGO DATA CENTREManaged services provider Latisys, has completed expansion of its 86,000 square foot Tier III+ Chicago-area Data Centre facility. The recent completion of Phase 1 of the expansion project added 9,000 square feet of high density raised floor to Latisys` Oak Brook, Ill data centre. The company says that the additional space is already 70% sold, and the Oak Brook facility now has approximately 70 customers - ranging from Fortune 500 firms to small and mid-sized organizations. Key demand drivers include the need for more power and space among Chicago-area organizations whose existing capacity threshold has been reached, and close proximity to downtown Chicago in The Loop and surrounding areas with low latency.

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ASIA

HITACHI DATA SYSTEMS OPENS GREEN DATA CENTRE IN YOKOHAMAHitachi Data Systems has launched a 10,000 sq.m data centre in Yokohama – its third data centre – which has been given a "benchmark" Power Usage Effectiveness rating of 1.6, while delivering data security, reliability and availability. The data centre has a rooftop garden which shades the building and can lower the indoor temperature in the summer by as much as three degrees Celsius. Outdoor air is also used for cooling systems which have "zero ozone depletion”. The data centre uses a series of power source facilities, including a three-dimensional thermal hydraulic simulator called AirAssist� to optimize the cooling and layout of hardware and a new air-conditioning control technology, interlocking the air conditioning system with the energy load of the information technology equipment.

PATSYSTEMS UPGRADES TO NEW ASP SOLUTIONPatsystems has upgraded to a new Application Service Provider (ASP) solution in Tokyo. This low latency facility, will be used to support Patsystems’ customer base in Japan. The enhanced solution offers internet line resiliency, resilient firewalls, networks and servers. The facility contains a link to Patsystems’ London data centre to support XLink connections to and from Japan. The ASP solution will also offer customized back office reporting and post-trade services. Clients can utilize these reporting services to meet Japanese regulatory reporting requirements.

MACQUARIE UPGRADES NETWORK COREMacquarie has upgraded its network core as part of overall investment of more than A$55 million in its Sydney data centre. The upgrade will provide scalability across its business and its ability to manage the faster network speeds Australia's new national broadcasting network will deliver. The facility hosts Australian businesses and government organizations including the Department of Prime Minister and Cabinet, PBL Media, carsguide.com, SBS and WebJet. The upgraded network has the capacity to deliver more than one terabyte of data per second, providing customers with increased scalability, improved reliability and greater capacity. Macquarie says it took 15 months to design, build, deploy and migrate its customers.

KOREAN GOVERNMENT ASSESSES DATA CENTRE IN VIETNAMThe Korean government is conducting a feasibility study to set up a Government Information Data Centre (GIDC) in Vietnam. The Study is expected to complete in October this year. Samsung SDS is the Korean partner for this project and is expected to help Vietnam establish government Web sites.

DOT VN TEAMS WITH ELLIPTICAL MOBILE SOLUTIONSDot VN, Inc., an Internet and Telecommunications Company and the exclusive online global domain name registrar for the Country of Vietnam, has entered into a strategic partnership with Elliptical Mobile Solutions, LLC (EMS) of Chandler, Arizona, a provider of high-tech solutions for the mobilization, operation, environmental protection and security of electronic equipment. The partnership will focus on bringing turn-key infrastructure solutions for data centre projects to Vietnam. EMS product offerings integrate Tier III, and in some cases Tier IV, standard redundant infrastructure into an energy efficient secure rack. Dot VN has the exclusive right to distribute these data centresolutions in Vietnam and the non-exclusive right to distribute in Asia. EMS stationary and mobile data centre units are small, mobile and self-contained, and also save on capital investment. EMS claims some 60% on operational costs, specifically electricity, and up to a 75% in floor space savings. The technology focuses on cooling, maintaining and protecting the data centre equipment itself, not the room that houses the equipment.

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AFRICA

INTERNET SOLUTIONS LAUNCH NEW SOUTH AFRICAN DATA CENTREInternet Solutions (IS) has launched a new data centre in Kwa-Zulu Natal, which forms part of the company’s current expansion project within the hosted and managed services division. The new Umhlanga based data centre is 250 sq.m in size but has the ability to scale to 400 sq.m should increased demand require. The company already operates a 200 sq. m facility, also located in Umhlanga. It has also partnered with the eThekwini Municipality and is involved in the metro connect fibre network. The Municipality has begun offering fibre services to corporates, which in turn will fund the expansion of this initiative to local communities, giving Internet access to many underprivileged communities in the eThekwini Municipality. The company expects a boom in the market due to the recent launch of the Seacom undersea cable which has a landing station at Mtunzini and connects to Johannesburg and Durban. IS plans to backhaul certain services over this infrastructure. IS has secured its energysupply from City Power to support all its data centre expansion initiatives.

RWANDA DATA CENTRE TO LAUNCH IN DECEMBERThe National Data Centre (NDC) that will house public and private sector data will be ready by December. RDB-IT signed a contract with a Swedish ICT firm, Coromatic, to construct the centre at a cost of more than USD5m. Funding for the project was made available under the Swedish and Rwanda development co-operation agreement in place since 2007. The World Bank and the European Commission are among other partners who have pledged to support RITA future projects.

MIDDLE EAST

INJAZAT SEES GROWTH OPPORTUNITY ACROSS GULF REGIONWith ICT spend throughout the Gulf Cooperation Council reached some USD46 billion in 2008, this year it is expected to increase to USD50 billion and the forecast is USD70 billion by 2012. These forecasts are supporting Injazat, the data centre and managed services operator headquartered in Abu Dhabi, to consider its plans for medium term expansion and growth into new markets. Over the past three years, the company has signed contracts worth more than AED2.5 billion, making it one of the fastest-growing ICT players in the Middle East.Customers include Etihad Airways, du and the Abu Dhabi Commercial Bank.

DATA CENTRE DEALS

DE-CIX EXPANDS ITS INFRASTRUCTURE AT INTERXION FRANKFURTDE-CIX, the central, international Internet exchange in Frankfurt am Main, has expanded its infrastructure at Interxion, the carrier-neutral data centre operator, by extending its Internet exchange infrastructure into Interxion’s latest Frankfurt data centre, Frankfurt5. For the exchange DE-CIX, this means that they now have five infrastructure locations distributed across the city of Frankfurt. Moving into the new data centre will give DE-CIX and its customers more space to grow as well as access to some of the most advanced IT infrastructure currently available in Germany. Frankfurt5 offers 2N emergency power supply, an energy-efficient cooling system, biometric access controls, multiple layers of physical security and a 24/7 security team.

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KDDI SELECTES TERADATA FOR ENTERPRISE INFORMATION SYSTEMJapanese carrier KDDI has implemented a Teradata Active Enterprise Data Warehouse (EDW) platform from Teradata Corporation, the data warehousing and enterprise analytics company. The Active EDW will serve as the data retrieval and analysis platform that KDDI uses to perform multi-faceted analyses of customer, rate and other related data from its mission-critical sales support and planning system. It will enable KDDI to integrate the data on customers and usage, and other critical information gathered from a wide range of KDDI service operations, and to analyze that information to further improve customer service.

TERACO ADDS DARK FIBRE AFRICASouth African colocation provider Teraco has added physical network provider Dark Fibre Africa to its Johannesburg data centre. The deal brings the total number of carriers available at Teraco facilities to six. DFA began building its ducting infrastructure in October 2007 and currently has about 72,000 metres of fibre in more than 534 metres of trenches. The company's fibre connects Johannesburg, Pretoria, Durban and Cape Town. With this latest addition, Teraco customers can access DFA's national infrastructure, linked directly to the data centre’s "meet me" room. In August 2006 , the South African government allowed another player to enter the market. Then in 2008, a lawsuit against the telecom regulatory agency led to further deregulation. Teraco operates data centers in Johannesburg and Cape Town. DFA is currently building an open-access ducting infrastructure in the country which it will lease to all licensed service providers and operators.

BRITISH WATERWAYS SELECTS SCC FOR DATA CENTRE SERVICESBritish Waterways, the organisation responsible for the nation’s waterways heritage has selected SCC to be its sole provider of integrated IT across the entire infrastructure, with the contract switching from the incumbent, Fujitsu. The project involved a demanding timetable for the services transition, undertaken over a three month period in order to mitigate risk. The fully managed and hosted service includes the support and maintenance of the PC infrastructure, desktop support, Data Centre server hosting, an ISO 20000 certified service desk, Microsoft application support and network security. The supporting SLA goes beyond measuring performance levels, to include relationship management, the success of ongoing transformation and the value of advice in strategic terms.

INTERNODE SECURES ADDITIONAL SUITE FROM GLOBAL SWITCHAdelaide based ISP Internode has added a 50 square metre dedicated suite in Global Switch's Sydney data centre to its co-location options for mid-market enterprises on the east coast. The company already has rack space in a third-party suite within the same centre and at the Equinix facility in Sydney's south. The dedicated suite in Global Switch is capable of supporting between 25 and 30 racks with an average density of 2kW.

ABOVENET COMPLETES PRIVATE DWDM RING IN NORTH TEXAS FOR HORIZONAboveNet Communications, Inc., a provider of high bandwidth connectivity solutions, has completed a private DWDM ring between Horizon Data Centre Solutions' locations in the North Texas data centre corridor. The connection links Horizon to 400 other data centres. where they offer large bandwidth connectivity. AboveNet connectivity will be an integral component of Horizon’s private cloud, storage and backup service offerings.Horizon has more than 50,000 square feet of data centre space in Dallas, and will use the AboveNet private fibreconnectivity to expand its services into its new second location, while adding product offerings and delivering on demanding service level agreements.

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RACKSPACE WINS 3-YEAR DEFENCE CONTRACTRacksapce has won a three-year deal to provide fully managed support to the Joint Server Farm (JSF), a secure hosting environment for Ministry of Defence (MOD) websites. The relationship will see MOD, Army, Royal Navy and Royal Air Force websites consolidated onto a single, virtualised infrastructure. The MOD was required to meet the Transformational Government Agenda (TGA), which requires rationalisation of websites across all government departments. The MOD also moved to virtual servers for its consolidated infrastructure to provide greater flexibility when managing the sites. Rackspace consolidated 67 servers to 12 physical hypervisors and 72 virtualservers by implementing virtualisation across the MOD infrastructure.

M&A/FINANCIALS

ONYX ACQUIRES IT FIRM MOFFAT COMMUNICATIONS IT services and data centre firm Onyx Group has acquired City of London based IT firm Moffat Communications. It is the fourth acquisition for Onyx in the last 18 months which follows the purchase of Scottish companies Campbell Lee and Dundas IT. Formerly part of Grant Thornton UK LLP, Moffat Communications is a specialist IT provider to financial services companies, with key specialities in Hedge Funds. The acquisition provides Onyx with expertise in regulated markets and augments its hosting and virtualisation platforms. The acquisition also brings a data centre in the City of London. Onyx’s turnover has increased from �3m to �12m through organic growth and a series of strategic acquisitions over the past two years. The announcement follows the recent opening of a new data centre in Edinburgh.

AUSTRALIAN RENEWABLE ENERGY FIRM SOLVERDI ACQUIRES DATA CENTRE DESIGN FIRMSolverdi Worldwide Ltd (ASX: SWW), the renewable utility company has acquired Aristos International, a data centre services design and build firm, for 5 million ordinary shares of Solverdi at USD 0.13 per share. The shareswill be subject to a 12 month escrow period. The Aristos transaction is expected to add approximately USD 7 million to revenues, for the remainder of the 2009 calendar year, Aristos International offers a wide range of services from site selection, to full project management, and is located in Arizona, with operations in California andColorado. The companies will be able to create a new green proposition by integrating Aristos` expertise in data centre design and build with Solverdi’s patented, low-cost, “green” electricity generating process.

CARPATHIA HOSTING ACQUIRES SERVERVAULTCarpathia Hosting, a provider of enterprise managed hosting services for government agencies and businesses, has acquired ServerVault – an IT infrastructure management and hosting services company with a tier III data centre located in the DC metropolitan area. The combined company will continue to operate under the Carpathia Hosting. Carpathia bought ServerVault 15 months after being acquired itself by Spire Capital, a New York based private equity firm. Spire specializes in investments in companies that provide business and information services as well as companies in the media and communications sectors. The company now operates 8 data centres in the US and Canada.

RACKSPACE SHARES RISE AFTER 'OUTPERFORM' RATINGShares of Rackspace Hosting Inc. rose this month after Credit Suisse began coverage of the stock with an "Outperform" rating. The San Antonio-based company saw shares climb 60 cents, or 4.8 percent, to USD 12.97 on September 4th. The stock has ranged from USD 4 to USD 16.23 over the past year. In a note to investors, Credit Suisse described Rackspace as "an early leader in the emerging market of cloud computing," in which Rackspace provides companies with the use of its computer servers for a fee. Rackspace's revenue climbed around 47 percent in 2008.

13

CLOUD

AMAZON’S PRIVATE CLOUD SERVICES AIMS AT CORPORATE USERSThe Amazon Web Services launch of Virtual Private Clouds (VPC) throws down a powerful gauntlet to the third party outsourcing sector. In a blog post, the Amazon CTO Werner Vogels has rationalized the service opportunityby highlighting the advantages of using VPC. Amazon claims that the cloud changes capital expense to variable expense and lowers operating costs; it is fast, in that cloud resources such as Amazon EC2 “only take minutes” to deploy. In addition, Amazon claims it has invested over USD2B in developing technologies that deliver security, reliability and performance at scale and at low cost.

The launch is nevertheless a trial. Startups and big companies alike can tap into Amazon’s web services infrastructure with the key selling point that users pay only for the resources they use, much like they pay for electricity.

Users can also create their own logically isolated pieces of the cloud. These are servers or partitions within servers - “subnets” - that are isolated from other customers and can be completely user controlled. Yet this does not mean physically separated systems. Information will still be shared with other companies’ data on the actual servers. In all, Amazon’s service provides access to the raw infrastructure, rather than a service. Conversely IBM and Microsoft are focusing on services, and the perceived emphasis on security from the corporate sector.

ELASTICHOSTS LAUNCHES CLOUD SOLUTIONSElasticHosts, the UK based cloud provider, has launched cloud server solutions, which provide ultra-flexible and easy-to-use server capacity for scalable web hosting and on-demand burst computing. Capacity is billed on-demand by the hour and the servers run any PC operating system, are fully configurable and designed to accommodate all forms of web hosting. ElasticHosts offers a 100% SLA with 100x credits for downtime, and two independent data centres in Europe, using PEER 1’s 10 Gbps SuperNetwork™ infrastructure to support mission critical hosting needs where business continuity is vital. To mark its launch, ElasticHosts is offering a free four-day trial to allow businesses to experience the power and simplicity of cloud hosting for themselves. Full details are available at www.elastichosts.com

GREEN

ATTENDA LAUNCHES CARBON NEUTRAL PROGRAMMEManaged services company Attenda Limited, has launched a CarbonNeutral� hosting programme, to enable clients to offset the carbon emissions of their infrastructure within the Attenda data centre. Working with The CarbonNeutral Company, a carbon offset and carbon management business, the Attenda CarbonNeutral� hosting programme provides a solution for clients to measure and reduce the CO2 emissions produced by their infrastructure, hosted within the Attenda data centre environment, to net zero.

14

INNOVATION

DATAPODS LEAD WAY FOR FAST DATA CENTRE DEPLOYMENTAustralian developer Datapod has designed an ultra-fast, low-cost, low power consumption data centre which will be rolled out worldwide by global infrastructure specialist APC by Schneider Electric. The units will be manufactured locally in conjunction with APC. Although the modules are 20-foot container equivalents, unlike first-generation containerised data centres the new products have been engineered entirely for data centre purposes. They are self contained, heavily insulated units that can be quickly joined together to create a green environment for data centres of between 5 and 50 racks in size. The target market is as a replacement for bricks and mortar data centres. The modular system design has enabled Datapod units to be very rapidly deployed in industrial estates, or even alongside car parks to reduce rental costs.

DATES FOR DIARY

DATA CENTRE CONFERENCES

Data Centre Strategies Mauritius – Port Louis, September 30-October 1Having achieved multiple subsea connectivity cables and an enviable location for offshore services and banking, Mauritius is poised to become a new location for data centres, disaster recovery and business continuity centres. This special conference will offer investors, operators and vendors engaged in the sector with a two-day intensive review of data centres, expert presentations evaluating critical decisions involved in locating facilities on the island, visits to potential sites, and pre-arranged meetings with the Board of Investment in Mauritius.www.datacentres.com/dcsmi

4th Power and Cooling for Data Centres – London, October 22Based on newly commissioned research, BroadGroup is inviting leading edge developers of new technologies to discuss the very latest developments in power and cooling data centres. Speakers include R&D academics from universities in Europe and North America, environmental authorities and specialists, innovation experts and solutions providers to deliver a special one-day intensive forum. The event is supported by an exhibition.www.datacentres.com/pac

2nd Dark Fibre International Convention – London 4-5-6 November Dark Fibre deployment has been sustained, new players have emerged and demand is increasing in both developed and emerging markets. This year’s conference includes a special focus on Central and Eastern Europe, bandwidth demand from video, data centres, and the Investment proposition for dark fibre.www.darkfibreconvention.com

15

DATA CENTRE TRAINING

5-day CSOEP DATA CENTRE MANAGER (including examination and certification)New Dates and New Early Booking Discounts:

Europe21-25 September – London 30 November-4 December – London (book by 30 September for discounted rate of Euro 2k plus vat)

Middle East 1-5 November –Dubai, UAE (book by 30 September for discounted rate of USD2800)

Asia 7-11 December – Singapore (book by 31 October for discounted rate of Sing$4k plus taxes)

enquiries@datacentres.com