Switch & Data Announces Opening of its Newest PAIXSM Internet Exchange in Toronto to Satisfy Growing Internet Peering Demand ...

Switch and Data (NASDAQ: SDXC), a leading provider of network-neutral data center and Internet exchange services, today announced the launch of its newest PAIXSM Internet exchange in its 151 Front St. site in Toronto, Canada to meet growing Internet peering needs in the Canadian market. Switch and Data operates PAIX Internet exchanges in six major IP hub markets in the U.S. and launched this new Internet exchange in response to customer requests for a scalable IP peering solution for the Canadian market. Companies including Internap, Internet Light and Power, nLayer, and SoftCom, Inc. have already joined PAIX Toronto and Switch and Data has received interest from others including some of the world’s leading Internet brands.

Internet peering is the interconnection of different Internet networks onto a common platform to exchange their customers' IP traffic directly, instead of paying a third party network to route the traffic. The ATLAS Internet Observatory 2009 Annual Report published by Arbor Networks reported that Internet traffic has been consolidating and 150 origin networks now contribute about 50% of all Internet traffic. These larger networks are increasingly exchanging traffic directly between each other and peering between leading networks is displacing traditional Internet transit as the preferred way to route traffic on the Internet. Peering offers a number of advantages over transit which include:

Reducing cost by removing traffic from paid Internet transit agreements
Increasing redundancy by passing traffic across multiple network connections
Reducing latency by controlling routing and passing traffic over a direct point of exchange
Improving performance by bypassing potential traffic bottlenecks

At the same time as traffic flow is shifting toward public and private peering, as explained in the ATLAS report, companies are scaling their operations to keep pace with the continued rapid growth of IP traffic volume. Cisco Systems predicts IP traffic in North America will almost triple over the next three years from 5,300 petabytes (PB) per month in 2010 to 13,400 PB/month in 2013. This growth is fueled by the rapid adoption of bandwidth intensive applications including Internet video, gaming, file sharing, software as a service business applications, and mobile data and Internet.

The need to scale peering operations to keep pace with vigorous expected traffic growth prompted a number of Switch and Data’s customers to ask the company to establish a PAIX Internet exchange in Toronto and rollout the same highly scalable, mission critical capabilities in Canada that Switch and Data offers on its PAIX Internet exchanges in key markets like the San Francisco Bay Area and Metro New York in the United States. PAIX Toronto will offer customers 24x7 monitoring and support, plus a growth path for their peering and interconnection needs that exceeds the scalability of other peering options in Toronto, including the availability of 10GigE and aggregated multiple 10GigE ports. Aggregated 10GigE ports provide PAIX peering customers the ability to aggregate multiple 10GigE PAIX ports to achieve from 20GigE up to 80GigE bandwidth using a single IP address.

"We are pleased to see Switch and Data roll out its well regarded PAIX Internet exchange in Toronto," said Turker Sokullu, Chief Executive Officer of Canadian managed service provider SoftCom Inc. "Customers trust us to host their corporate email, websites and e-commerce products and expect the highest level of service with no downtime. By working with a leader in Switch and Data, we are able to give our customers the reliable services they need today, and prepare for the future with a proven best in class partner.”

Switch and Data has located its PAIX Toronto Internet exchange within its existing 151 Front St, data center which is a highly interconnected, network-centric site in Toronto’s leading carrier hotel. The building is also noteworthy for its environmentally friendly Deep Lake Water cooling infrastructure which reduces energy consumption by up to 90% compared with traditional air conditioning and also results in reduced green house gas emissions. PAIX Toronto brings a highly-scalable, mission critical Internet exchange to Toronto which offers capabilities unmatched by alternatives in the market. These advantages include:

Aggressive SLA’s with a 99.999% availability commitment
24x7 support
Proactive network operations center (NOC) monitoring of system performance
Customer ability to monitor traffic stats and sFlow through the Customer OneSM portal
Port speeds from 100mpbs- 10GigE – including multiple 10GigE port aggregation up to 80GigE
Route Server
Public and Private peering via VLAN’s
Support for IPv4 and IPv6
Deep industry knowledge and 10+ years of world class IX operations expertise

“Demand for video and new commercial applications is driving exponential Internet traffic growth across North America,” explained Ernie Sampera, Senior Vice President of Marketing for Switch and Data. “We are excited about our investment to add scale to the Internet exchange fabric in Toronto. Network-centric businesses in Canada’s leading Internet market will be able to rely on PAIX’s well known operational excellence, higher capacity port speeds, market leading SLAs, and customer driven operating staff to help them scale their peering capabilities to evolve and accelerate their Internet services.”

Toronto is the major communications hub for the Canadian market and serves as one of the main aggregation points for cross-border Internet traffic between Canada and the United States. Canadian Government statistics rank Toronto as the third largest metro area in North America, by IT company concentration, behind the San Francisco Bay Area and New York. Switch and Data supports the interconnection requirements of high-tech companies by providing the broadest footprint of sites in key North American communications hub markets such as Toronto, Buffalo, Chicago, Dallas, Miami, New York, San Francisco, and Seattle.

Individuals who would like to learn more about PAIX Toronto are invited to join Switch and Data’s Toronto peering event at The Academy of Spherical Arts, One Snooker St. (formerly 38 Hanna Avenue) from 6-9pm on Wednesday, March 31. Learn more about the event and RSVP here.

About Switch and Data

Switch and Data is a premier provider of network-neutral data centers that house, power and interconnect the Internet. Leading content companies, enterprises and communications service providers rely on Switch and Data to connect to customers and exchange Internet traffic. Switch and Data has built a reputation for world-class service, delivered across the broadest colocation footprint and richest network of interconnections in North America. Switch and Data operates 34 sites in the U.S. and Canada, provides one of the highest customer satisfaction scores for technical and engineering support in the industry, and is home to PAIX® — the world's first commercial Internet exchange.

Important information about Switch and Data is routinely posted to the investor relations section of the company's website www.switchanddata.com. For copies of all Switch and Data press releases and SEC filings, please visit the website. To automatically receive Switch and Data financial news by email, please visit the website and subscribe to Email Alerts. Investors are encouraged to check Switch and Data's website frequently to access the most up-to-date information.

Switch & Data Facilities Company (MM) (NASDAQ:SDXC)
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