Last month’s terrorist attacks in New York and Washington, D.C., changed many perceptions. Among them could be how businesses see an industry that had seemingly stalled in Orange County,data centers.
Data centers,huge farms of computers that store and serve data to businesses that rent them out,were a lifesaver to many businesses after the attacks. The World Trade Center held billions of bits of data in storage and server systems. Much of that information was stored in Morgan Stanley Dean Witter & Co.’s facilities in the twin towers. That data could have been completely lost had they not been backed up on computers elsewhere.
“The gravity of the situation is such that it brings home to lots of companies that if you have information you want to protect, you need to have it backed up in multiple locations,” Laurie McCabe, a hosting industry analyst and vice president at Boston-based Summit Strategies Inc., told CNET Networks Inc. recently.
Others concur with McCabe that it’s important to get systems backed up in case of any disaster, be it an earthquake, fire, flood or sabotage. Concerns about how safe databases are in the wake of the Sept. 11 attacks could benefit technology and real estate types who saw demand for data center space dry up in the past six months.
Earlier this year, Santa Clara-based Exodus Communications Inc. pulled out of a 15-year lease for space at Parker Hannifin Corp.’s former aerospace group campus in Irvine. The space, which had been billed as ideal for a data center, still is vacant.
Along with Exodus, several other companies leased or bought space for data centers in Orange County in the past year, including Greenwood Village, Colo.-based FirstWorld Communications, Costa Mesa-based Epoch Internet Inc. and San Antonio, Texas-based SBC Communications Inc.
Any increase in demand for data services could help rekindle a once-hot market. Just months ago, demand for data centers made prices for some OC industrial buildings skyrocket, with companies paying as much as $85 a square foot. Now brokers say privately that data center demand has waned. Data center operators are waiting to see how demand for their services plays out in the wake of the attacks.
“I think it’s still too early to tell. We’ll probably get an idea in a few weeks,” Exodus Communications spokeswoman Maureen O’Connell told CNET. “We’ve been communicating with our customers closely, but what it will mean long term remains to be seen. People are still just dealing with the immediacy of what’s happened.”
Lantronix Buys Synergetic
Irvine-based Lantronix Inc. recently struck a pact to acquire privately-held Synergetic Micro Systems, a Downers Grove, Ill.-based company. Terms of the deal weren’t disclosed. The merger should be completed before the end of the year, the companies said.
Lantronix, a maker of servers that dole out data to remote devices, provided scant details of the reasons behind its acquisition except to say that it would provide the company with engineering and factory automation resources.
“We believe the acquisition of Synergetic would provide us with valuable engineering resources and expertise in factory automation that could help bring new device server technology to market,” said Lantronix Chief Executive Fred Thiel. “Synergetic’s technology would also enhance our family of embedded solutions and bring us a step closer to becoming a true complete solutions provider in the device networking category.”
Navy Taps Lighting Tech
In a bid to cut energy costs, the Navy recently negotiated a $2.5 million deal with Costa Mesa’s Lighting Technology Services Inc. to install special sensors at three San Diego bases. The sensors turn lights on and off when somebody enters a room, cutting energy costs by as much as $1 million a year in the Navy’s case.
Along with the new light sensors, Lighting Tech plans to install devices in vending machines on the bases that will automatically cut power to the machines when no one is in the area, also saving money.
“Vending machines have been overlooked in the past as a source of high, constant energy output. At a cost of approximately $350 a year per unit, companies can really benefit financially by ensuring that their vending machines are running only when necessary.”
Aspeon Wins in Court
It may be small, but it can fight. The U.S. District Court for the central district of California ruled against shareholders of Irvine-based Aspeon Inc. who sued the company for alleged violations related to Aspeon’s restatement of earnings last year. The court threw out the year-long lawsuit with prejudice, meaning the plaintiffs can’t re-file their case.
“We are pleased with the court’s decision and are glad to put this behind us,” said Aspeon Chief Executive Richard Stack.
The win in court is good news for Aspeon, which has had its share of difficulties lately, including a lifeless stock price and a failed attempt at selling one of its most lucrative businesses earlier this year.
