Datapipe: Managed Hosting Revenues Accelerate

Nicholas Mukhar

July 21, 2011

1 Min Read
Datapipe: Managed Hosting Revenues Accelerate

Datapipe, the managed hosting provider, apparently is gaining momentum — though it’s difficult to fully quantify the momentum. The company says its Q2 2011 revenue exceeded Datapipe’s revenues for all of 2009. That sounds impressive — but we don’t have our hands on the actual revenue or profit figures. Still, Datapipe seems to be hitting some key business milestones.

Datapipe was was recently named to the Gartner Magic Quadrant for Cloud IaaS and Web Hosting, and the HP AllianceOne Partner of the Year in the Innovative Partner – Service Provider Category. The company plans to triple the data center capacity in London, double the data center capacity in New Jersey, and significantly expand its San Jose, Calif. and Hong Kong data center footprints, according to an announcement this week.

“The most important goal for Datapipe is that as we get bigger, we get better,” Datapipe CEO Robb Allen said in a prepared statement. In all, Datapipe operates six data centers and provides managed hosting, managed storage and managed security to roughly 1,100 clients in the United States, U.K., and Asia. Datapipe began offering the Datapipe Managed Cloud services in November 2010. The cloud services are designed for Amazon Web Services (AWS). In theory, the service allows channel partners to migrate customers’ mission-critical IT apps to AWS.

How is Datapipe funding all this expansion? One potential answer: In May 2011 Datapipe secured $176 million in combined equity and credit financing.

Additional insights from Joe Panettieri.

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