Switch And Data IPO...

Feb 9, 2007

Switch And Data, a provider of network neutral data centers and colocation services, just had an IPO yesterday. They filed to sell about 1/3 of their shares priced at the high end ($17). I was wondering if anyone here had personal experience with the company, and could offer some insight on how they stack up versus Equinix and other competitors.

Switch And Data trading symbol: SDXC
Equinix trading symbol: EQIX

Equinix has been up a lot this year and has a huge market cap of 2.3Bil ($80/share), with revenues of 269Mil, gross profit 63.7Mil, net income -49Mil.

I calculated Switch And Data has around 35.9 million total shares, which puts its current market cap at around 720Mil ($20/share). I couldn't find any 2006 numbers, but in 2005 they had 105Mil revenues and -11.3Mil net income.

How comparable are these two companies? Does SDXC deserve to trade at a comparable level to EQIX? What do the experts at WHT think?

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Switch And Data Venting

Aug 12, 2009

Recently, we expanded our space with Switch and Data. They didn't have any cabinets physically next to our current ones, so they offered us cross-connects with an NRC only (no MRC) between our own existing space and the new. (Of course I didn't get this on the same 1-year contract as everything else.) After a few months, I noticed they've been billing us for them, so I contact our rep. Apparently she "wasn't authorized" to do that, so after some heated emails they're removing the charges to date and charging us the MRCs moving forward. It's over $7K a year for the two.

They also upped their minimum labor charge, so it now cost $175 to have them sign for a FedEx or have any other minimal amount of work done. We have an on-site employee who manages our equipment, but obviously he won't sit there waiting for UPS/FedEx a few times a month. Two instances last month there were employees on site and it cost an hour of labor for them to physically walk two packages onto the data center floor from the front office.

While installing another cross-connect recently, they knocked our patch panel just enough to disconnect a fiber. They charged us for the two hours it took to debug and rectify the issue. The on-site techs assertion was that it must have been "loose" to begin with - of course it worked fine for 6 months prior. You would think a sales person would side with you in a case like this, but they wouldn't budge.

They must be really keen on driving away customers. What really sucks is the connectivity available at their facilities is so amazing. I would brush it off as the cost of doing business if they were up front on all these things, but they aren't.

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