EarthLink To Extend Fiber Network, Data Center Coverage Area

By Craig Galbraith Comments
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EarthLink has plans to extend its core fiber network and its IT solutions footprint with four new data centers and the launch of its next-generation cloud hosting platform, the company announced Tuesday.

By integrating additional distributed data centers with an expanded IP network, the former dial-up ISP giant says it is creating an end-to-end cloud fabric to meet the growing demand for highly secure cloud hosting and IT services.

Atlanta-based EarthLink will expand its new cloud hosting platform into four new data centers in San Jose, Chicago, Dallas and South Florida throughout next year. It is also enhancing its existing data center in Rochester, N.Y., with its next-generation cloud architecture early next year. The company's next-generation cloud architecture is an integrated computing and storage platform designed to support current and future demands of the IT services business. EarthLink is using platforms to provide cloud hosting, virtual desktop, security, colocation, backup and application solutions.

To interconnect this expanded data center footprint, EarthLink is extending its fiber network and adding next-generation optical transport capabilities from Miami, Fla., to Virginia, increasing capacity in key markets and building its fiber network into Texas, adding seven major markets. The additional capacity will allow EarthLink to offer new, native 100 Gig transport services across its diverse fiber footprint, offering customers the advantage of unique network routes for enhanced redundancy and network diversity, the company said.

"We see in the marketplace that the IT needs of companies are growing and evolving as they look for ways to virtualize their businesses and strategically maintain, if not decrease their cost structures," said EarthLink executive VP of products and marketing, Michael Toplisek. "As a result, EarthLink is continuing to evolve our IT solutions architecture, infrastructure and services."

Meantime, EarthLink announced in its third-quarter earnings report on Tuesday that company revenue between July 1 and Sept. 30 was approximately $335 million, down 1 percent from the previous quarter and 6 percent from the year-ago quarter. Profit, however, was $1.4 million, compared to a net loss of $1.1 million in Q2 2012. Profit was $7.5 million in Q3 2011.

EarthLink is in the midst of a transformation into a nationwide IT business, and the company said on its earnings call that it has a plan in place to reduce debt to strengthen its finances.

"From both a strategic and financial perspective, we believe EarthLink is positioning itself to capitalize on the significant IT services market opportunity," said Rolla Huff, EarthLink chairman and CEO.

EarthLink's business services revenue declined only slightly last quarter, down $400,000. Business services comprised 77 percent of company revenue. Consumer revenue dropped $3 million, that was a narrower loss in the previous quarter.

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