Hosting Companies, SoftLayer And The Planet In Discussions To Merge

Date: August / 05 / 2010 + Comments: 1

Softlayer servers photo

Photo: Soflayer’s servers.

Investment firm GI Partners revealed on Tuesday that GI had acquired hosting company SoftLayer.

GI also owns a large stake in the hosting service The Planet, and now they are in discussions to merge The Planet with SoftLayer. The goal is for the transaction to be complete in the fourth quarter of this year.

The implication – based on the nature of GI’s other dealings in the hosting business – seems to be that the investor acquired a controlling interest in the hosting provider SL.

SoftLayer adds an interesting asset to a growing ecosystem of hosting properties managed by GI. The company owns dedicated hosting provider The Planet, along with collocation provider Telx (though that company is expected to go public sometime this year), an interest in Digital Realty Trust, as well as a recently-acquired interest in data center company ViaWest.

Softlayer announced two weeks ago that it earned $60 million from January 1 through June 30 of this year, and is on track to earn $125 million in 2010. According to the same announcement, the company is now hosting 30,000 servers.

The Planet + Softlayer

Teams at both companies have just begun discussing how to integrate their organizations.

For customers, nothing is changing in the near term. Both companies still operate independently, and their products, services, support, and contacts are the same today as they were yesterday. For now, each company continues to be led by its current management team. Pending completion of the merger, Lance Crosby (Soflayer’s CEO) will have the privilege of becoming CEO of the merged company.

Softlayer will provide as much information as possible to their customers via e-mail.

SoftLayer and The Planet have a lot in common: solid customer bases, broad product and service lines, a high level of commitment to the cloud, and more. But also have different strengths: The Planet provides different services, such as collocation, on a large scale, and SoftLayer leverages automation expertise to deliver innovative solutions. Together, they can provide customers greater value through a wider continuum of services and the most scalable, automated, and cost-effective global infrastructure.


Softlayer infrastructure

Photo: Softlayer infrastructure

The Planet servers

The Planet infrastructure racks

The Planet Deploys PowerEdge R710 Servers:
The Planet PowerEdge R710 Servers

The Planet’s Data Center Build-Out, D6:
The Planet Data Center racks

A server room at The Planet:
Server room at The Planet

Another Data Center:
The Planet Data Center

Photos from the event: Showmemyserver

The Planet Customers had the opportunity to request pictures of their servers on the racks in a 2009 event.

These are the customers that were able to take advantage of the opportunity!

The Planet showmemyserver
The Planet showmemyserver DELL
The Planet showmemyserver towers

Pentium 4:
The Planet showmemyserver Pentium 4
The Planet showmemyserver tower pentium 4

The Planet showmemyserver keys
The Planet showmemyserver CPU

PowerEdge:
The Planet showmemyserver PowerEdge

Dell Pentium 4:
The Planet showmemyserver 
Dell Pentium 4

Four CPU’s for 1 customer:
The Planet showmemyserver 4 CPUs
The Planet show me my server

DELL PowerEdge 1800 XEON:
The Planet DELL PowerEdge 1800 XEON

You can zoom in this last one.

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Post author: Daniel Semper

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