Thursday, February 19, 2009

IBeam taking over data center

From Business First 2/17/09

Canal Winchester technology consultant iBeam Solutions Inc. has signed on to manage a high-security data center in Columbus.

IBeam parent iB3 Networks Inc. (OTC BB:IBNW) said Tuesday that it signed a 10-year agreement to operate the data center, which has about 10 clients. IB3 CEO Eric Schmidt declined to disclose details on the center’s previous operator or name its clients, but said they range from retailers to Web hosting companies. The data center is downtown but Schmidt wouldn’t be more specific.

The company, which expects to have clients notified of the change by next week, expects to disclose financial details of the deal in a later filing with the Securities and Exchange Commission. Schmidt said the company expects the center to benefit both IB3 and its shareholders.

The firm late last year closed a deal to buy NYC Mags Inc., owner of online dating startup, and is working on due diligence for a deal to acquire social networking site

“Having a platform that we can host our other business units on is critical for the future of the company,” Schmidt said. “Secondly, it will be a very good revenue stream for our shareholders.”

The company estimated revenue from the facility could exceed $100,000 a month by the end of the year. IB3 through the first nine months of 2008 earned $261,395 on $986,990 in revenue, according to documents filed with the SEC.

The center will be run under 24-hour supervision by iBeam employees and local interns pursuing information technology degrees, Schmidt said. IBeam has 12 employees.

“With a lot of the high-end hosting, customers really want a data center that’s hands-on, 24/7, and many centers aren’t staffed 24/7,” he said. “This will give us a competitive edge.”

IB3, which hosts networks of tech-based and Internet-based companies, is the new face of the former Language Access Network Inc., which bought iBeam in late 2006. When Language Access sold its principal subsidiary in July, the company changed its name and stock ticker when Schmidt stepped in.


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