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Alan Crean
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8 months ago
in What is the Credit Crunch doing to Interxion? on The Hot Aisle
I would imagine that they are in a good position as the contracts were well tended to and the funding lines were secured by contract. As InterXion have made no negative noises hey seem fine - the banks are liquid currently according to the S&P view, so all should be fine.
This is not actually all based on any insight on Interxion, but as a business in a versimilar position to them, the banks are delighted to have performing businesses on their books................especially as no one else is trying to borrow any money.
I have a start up - its 2 years old this Christmas - it has only just moved to being profitable - it is cash hungry - and the bank love me today, and have lots of time to spend with me, all because everything else just stalled over the Summer.
I used to tell people I had a Business Process Software Company, and did OK - now I tell them we make software for the 3 R's (Regulation, Risk, Recession) and we have wind in our sails.
Its a reseccion - get into a little debt and its your problem - start a business and get into a load of debt and you become their problem - and problems get attention
This is not actually all based on any insight on Interxion, but as a business in a versimilar position to them, the banks are delighted to have performing businesses on their books................especially as no one else is trying to borrow any money.
I have a start up - its 2 years old this Christmas - it has only just moved to being profitable - it is cash hungry - and the bank love me today, and have lots of time to spend with me, all because everything else just stalled over the Summer.
I used to tell people I had a Business Process Software Company, and did OK - now I tell them we make software for the 3 R's (Regulation, Risk, Recession) and we have wind in our sails.
Its a reseccion - get into a little debt and its your problem - start a business and get into a load of debt and you become their problem - and problems get attention
1 reply
9 months ago
in Why did IBM Spend $300M on XIV? on The Hot Aisle
$300m for XIV is credible as you really can see it as a radical innovation, its the $200m for Diligent that seems a high price to pay as there are a plethora of deduplication vendors out there now - I am sure it all has something to do with the fact that the same guy started and owened both companies
1 reply
thehotaisle
Alan,
You may well be right, Moshe started the company with Doron Kempel in EMC's old Israeli R&D labs. Interestingly EMC got a 24% stake for a notional $5M investment and Moshe put in $10M of his own money.
According to Andy Monshaw, Diligent apparently have the fastest de-duplication technology running at 5 times the speed of the nearest competition.
A smart move if it can deliver de-duplication at wire speeds.
Steve
You may well be right, Moshe started the company with Doron Kempel in EMC's old Israeli R&D labs. Interestingly EMC got a 24% stake for a notional $5M investment and Moshe put in $10M of his own money.
According to Andy Monshaw, Diligent apparently have the fastest de-duplication technology running at 5 times the speed of the nearest competition.
A smart move if it can deliver de-duplication at wire speeds.
Steve
9 months ago
in Interxion Secures Euro 135 Million Credit Facility on The Hot Aisle
Considering the credit crunch and that I had heard one of their computer rooms caught fire with temperatures of up to 800 degrees last Easter...............it must have been the due diligence from hell.
Also makes you wonder just how many more players that market can take and how much it will grow - as it does not seem to be an asset backed facility, the bank and the share holders must be seeing YoY double digit growth as the norm going forward.
Also makes you wonder just how many more players that market can take and how much it will grow - as it does not seem to be an asset backed facility, the bank and the share holders must be seeing YoY double digit growth as the norm going forward.
1 reply
thehotaisle
Hi Alan,
For Interxion, a 38% revenue growth and 33% EBITDA are not to be sneezed at - even if EBITDA is adjusted. There is still a significant shortage of computer room capacity in the European market. I am finding quite significant price increases in Frankfurt that the vendors are quite firm on. A sign that we are still in a buyers market.
Data Center real estate values are mainly M&E residuals rater than convention price per square meter. Problem is many data center investors are looking at too long a depreciation cycle on their investment which distorts returns.
Steve
For Interxion, a 38% revenue growth and 33% EBITDA are not to be sneezed at - even if EBITDA is adjusted. There is still a significant shortage of computer room capacity in the European market. I am finding quite significant price increases in Frankfurt that the vendors are quite firm on. A sign that we are still in a buyers market.
Data Center real estate values are mainly M&E residuals rater than convention price per square meter. Problem is many data center investors are looking at too long a depreciation cycle on their investment which distorts returns.
Steve
Sometimes no news is good news, however in the current financial crisis most folks are keeping a low profile and either canceling investment plans or delaying them because they can't raise the funding. The wholesale market has completely collapsed. The point I was making in the article is that Fortis don't exist anymore so I guess that unless InterXion drew down the funds before Fortis disappeared, the revolving facility is short of a few quid...
Steve