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AT&T Opens Third Internet Data Center in Metro New York Region and New Toronto Facility to Extend Fully Managed Suite of Services

Posted on: Tuesday, 30 October 2007, 09:00 CDT

AT&T Inc. (NYSE:T) today announced the addition of new AT&T Internet data centers in Toronto, Canada and a third center serving the metropolitan New York City market. The centers are part of its yearlong expansion of its global data center footprint, which includes the addition of more space at six existing centers in the U.S. and around the world. AT&T has been steadily adding more space to selected data centers to help meet the growing global demand for application services, fully managed hosting, advanced monitoring, hosted storage, colocation and other services.

The third New York City area data center, located in Piscataway, N.J., officially opened in October, and the new Toronto facility will begin taking customer orders by the end of 2007. These additions will bring the total number of AT&T global Internet data centers to 38, and with the combined expansions elsewhere, will broaden AT&T's total global footprint of hosting space to exceed 2.1 million square feet.

In the U.S., AT&T is adding more space to data centers in Mesa, Ariz. Irvine, Calif.; and Ashburn, Va. Globally, AT&T has added to its data centers in London, Amsterdam and Singapore. These global expansions are part of the company's $750 million investment in its international infrastructure, which was announced earlier in the year. All expansions will be completed by January 2008, and AT&T expects to announce other managed service enhancements and data center expansions during the coming year as well.

"We continue to invest in growing our business to support customers and to meet the red-hot demands of customers -- large and small -- for managed hosting and application services," said Steve Caniano, AT&T vice president, Hosting and Application Services. "The addition of two new North American facilities and expansions of other data centers around the world are needed to support all of our customers that turn to AT&T for integrated hosting and network solutions and allow them to focus on running their business."

AT&T launched its data center growth project to meet the unprecedented demand for its managed hosting and application management services. The additional data center capacity will help AT&T accommodate growth from existing hosting customers and improve its ability to provide value-added services for current and new customers. AT&T offers capabilities designed to deliver greater efficiencies for hosting customers through the use of technologies such as server virtualization, application acceleration and patent-pending visual monitoring tools, all of which are integrated with AT&T's network services. These and other services allow AT&T to deliver hosted solutions that range from monitoring and managing infrastructure components all the way through full application lifecycle. In addition, AT&T provides remote monitoring and management of IT infrastructure located at customer sites.

AT&T is on track to see double-digit growth in its hosting business for the third consecutive year. This growth also has been the catalyst for the acquisition in October 2006 of application service provider USi. That acquisition was a way to complement AT&T's existing managed services capabilities and to pave the way for the company to drive more deeply into the applications management space with new offers for businesses of all sizes. Today AT&T offers clients managed applications services with offerings such as: human resources and financial management systems, e-commerce development and hosting, spend management and procurement, and enterprise messaging. AT&T's application management services allow clients to realize higher returns on their technology and applications investment, while also improving the performance of their packaged and custom applications.

AT&T is one of the leading global hosting services providers. The new and expanded data centers will further help AT&T position itself to remain a leading force in the global hosting services market, which the research firm IDC predicts will grow from $8.2 billion in 2006 to $16.3 billion in 20111.

"The increased volume of Internet-based content and online transactions, along with the continuing trend toward data center consolidation, has given the hosting industry a rebirth of sorts in the past two years," said Melanie Posey of the research firm IDC. "This has fueled significant demand for performance optimization technology; however most businesses lack the expertise to design and implement such solutions. As a result, more companies are turning to hosting service providers to get the increased flexibility, service functionality and support to help them implement hosted platforms to scale their Web site and application infrastructure, while keeping costs under control."

AT&T designs its data centers to exceed the most stringent industry standards which include multiple active power and cooling distribution paths, redundant components and fault-tolerant design to provide the highest reliability.

What's more, AT&T data centers use the capabilities of the AT&T global network to offer a rich portfolio of hosting solutions with unparalleled network performance and features. Those features provide greater flexibility when making real-time changes to IT environments, more control to extend applications to the customer's premise or to other data centers, and security capabilities such as denial of service prevention, hosted firewall, intrusion detection and anti-virus options that are all based in the network.

AT&T designs its data centers practices and controls with redundancy and reliability in mind and are audited under SAS 70 Type II.

For more information on AT&T's Enterprise Hosting Services, visit http://www.att.com/hosting.

Note: This AT&T release and other news announcements are available as part of an RSS feed at www.att.com/rss.

1. "U.S. Web Hosting Services 2007-2011 Forecast," IDC #206858, May 2007

About AT&T

AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of its three-screen integration strategy, AT&T is expanding its TV entertainment offerings. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com.

© 2007 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. For more information, please review this announcement in the AT&T newsroom at http://www.att.com/newsroom.

Source: Business Wire

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