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Apple buys data center originally built for MCI

post #1 of 24
Thread Starter 
Apple Computer has acquired an impressively-equipped but never used data center in Newark, Calif., the San Jose Business Journal reports.

The iPod maker is believed to have purchased the 107,000-square-foot facility for an estimated $45 million to $50 million -- illustrating rapidly rebounding demand for -- and the dwindling supply of -- Silicon Valley area data centers, according to the report.

The facility, which spans across 39800 and 39840 Eureka Drive, was originally conceived for communications company MCI WorldCom before getting mothballed after its 2001 completion.

According to the report, the most elaborate "Tier IV" centers such as the Newark facility have the highest levels of redundancy and security, and can cost upwards of $1,200 per square foot.

However, Apple's is believed to have paid in the vicinity of only $450 per foot by acquiring the facility from Dallas, Texas-based Stream Realty Partners, which manages an opportunistic investment fund aimed at buying data centers at bargain prices.

Gregg von Thaden of Colliers International in San Jose, Calif., Apple's primary Silicon Valley real estate negotiator, reportedly represented Apple in the Newark purchase-and-sale negotiations. Mr. von Thaden's was also integral in Apple's recent acquisition of a 116,830-square-foot office complex at 10400-10450 Ridgeview Ct. in its home town of Cupertino, Calif .

The Cupertino facility includes about 56,315 square feet leased directly from property owner Grosvenor International and 60,515 subleased from IBM, according to the report.

post #2 of 24
I tunes media store!!!!

Imagine the bandwidth wired into that baby!!!

All ready to be fitted out with xserves.....
post #3 of 24
I know I'm out of the infinite loop, but what the blazes is a data center?
post #4 of 24
Quote:
Originally posted by Strawberry
I know I'm out of the infinite loop, but what the blazes is a data center?

A big building with lots of electricity, air conditioning and fat internet pipes where companies house servers, support people, etc.

Do what you will, but harm none.

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Do what you will, but harm none.

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post #5 of 24
Video here we come ! Bye Bye Blockbuster and Netflix is my guess.
post #6 of 24
My question is, *WHEN* did they buy it? If it was a year ago, we might see something cool really soon. If it was a month ago, we may be waiting a while.
Living life in glorious 4G HD (with a 2GB data cap).
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Living life in glorious 4G HD (with a 2GB data cap).
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post #7 of 24
Will Bono have offices in this building?
post #8 of 24
Quote:
Originally posted by CosmoNut
My question is, *WHEN* did they buy it? If it was a year ago, we might see something cool really soon. If it was a month ago, we may be waiting a while.

More info at:
http://sanjose.bizjournals.com/sanjo...27/story5.html
post #9 of 24
Apple doesn't use its own servers for iTunes. It uses Akamai, which it had made a big investment a few years ago (as I did).
post #10 of 24
Cool (I think). That's right near where I work.
A.K.A. Goose

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A.K.A. Goose

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post #11 of 24
Quote:
Originally posted by melgross
Apple doesn't use its own servers for iTunes. It uses Akamai, which it had made a big investment a few years ago (as I did).

It uses both. Long story but Akamai takes your data and serves it from the edge of the internet ... you still need a big fat farm for it.
meh
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meh
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post #12 of 24
Quote:
Originally posted by melgross
Apple doesn't use its own servers for iTunes. It uses Akamai, which it had made a big investment a few years ago (as I did).

Correct. They either invested $100 or $150 million into Akamai.
post #13 of 24
Quote:
Originally posted by Faasnat
Cool (I think). That's right near where I work.


Go over there on your lunch break and see if it's currently occupied... post some shots here or on Flickr.

This is very interesting. Could have ramifications for iTunes or iPhone!

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #14 of 24
Quote:
Originally posted by Harald
It uses both. Long story but Akamai takes your data and serves it from the edge of the internet ... you still need a big fat farm for it.

Apple stores their content on their own servers, but it gets pushed to Akamai's. Apple could never have the iTunes store if it weren't for Akamai, without building their own immense server farm with the vast amount of bandwidth Akamai has.
post #15 of 24
Isn't part of Akamai's deal storing tons of data at regional file distribution sites? Therefore when you download you actually download from the "nearest" site instead of the same site everybody else in the world downloads from?
Living life in glorious 4G HD (with a 2GB data cap).
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Living life in glorious 4G HD (with a 2GB data cap).
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post #16 of 24
Quote:
Originally posted by CosmoNut
Isn't part of Akamai's deal storing tons of data at regional file distribution sites? Therefore when you download you actually download from the "nearest" site instead of the same site everybody else in the world downloads from?

Basically, yes.
post #17 of 24
Caching is so yesterday, when are they going to give us bittorrent, it would be perfect for movies, no-one would actually store a copy of movies them selves, just parts of them, and bittorent to balance traffic.
post #18 of 24
Do i hear VOIP (no pun intended)!, but could be part of the video/iphone effort.
post #19 of 24
why is apple always "the ipod maker"?
post #20 of 24
Quote:
Originally posted by furious_
why is apple always "the ipod maker"?

From this day forward, Apple shall be known as the "iPod-meister"!

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #21 of 24
Quote:
Originally posted by SpamSandwich
From this day forward, Apple shall be known as the "iPod-meister"!

The leader of the band, so to speak.

If Apple is going to buy Disney, as the pundits are now saying, then they would need fast lines of communication between the headquarters, so that they can use all of that hi-def video conferencing OS X includes.
post #22 of 24
Quote:
Originally posted by melgross
[B]"If Apple is going to buy Disney, as the pundits are now saying,..."

Wow. I missed that little rumor. Any substantial link to support this? Thanks, mel.

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post #23 of 24
Quote:
Originally posted by SpamSandwich
Wow. I missed that little rumor. Any substantial link to support this? Thanks, mel.

No one seems to have that. There are online articles, but nothing with any evidence. But several business columnists, as well as some from both industries have come out with this. It seems to have started with a column by Mark Veverka in Barron's. What is being said, and there is certainly at least partial truth to it, that as soon as Jobs gets his seat on the board, Apple might make a bid.

The reasoning seems to be something like this.

Disney's price now is seriously discounted, which it is. Apple's price is high, though not as high as it was recently.

Disney has plenty of content. and it's the kind of family content that Apple also plays to. Disney also has the kids, the school age ones that mom and dad buy computers and software for.

Roy Disney Jr. and others close to the company have been promoting Jobs as head honcho for Disney for years as well.

So far so good.

But, times have changed. Apple sells millions of iPods. They need content from everyone these days. Tied up with disney would strain those other, sometimes difficult relationships even more. Apple is doing better among the school age set, and among their moms and dads too.

Disney has a new leader who fits in much better with what Disney needs than Eisner did in his last few years. Disney got what it needed with Pixar.

Can Jobs run a company as complex as an Apple/Disney would be? could he give it his full attention?

Would he really want to?

Also, Apple is in the middle of a very delicate change with Intel chips and software. It's a balancing act that must have all of the attention of its top management. Apple can't afford to get involved with a merger of this proportion. Certainly not now.

Lastly. Apple is a VERY conservative company when it comes to finances. They don't fiddle the books, not even a little. No debt. This is important to Apple. They turned down a possibility to bid on Scientific Atlanta, which would have given them a monster foothold into people's homes, but didn't take it.

While we've been surprised before. I just don't see this. Certainly, not now.
post #24 of 24
Some potential uses for the new data center:
iDisk
- more storage for less money
- higher monthly transfer limit
- mail, backup, user folders, and homepage/iWeb content is separated making things quicker.
- iCal gets a server version (i.e. Exchange) or anyone with a standards based calendar application can subscribe to a .mac user's calendar similar to how photocasting works with any browser with RSS capabilities. Vista is supposed to have a stand-alone calendar that uses the same format as iCal does so maybe Vista users can get a .mac account and publish there MS calendar to their account.

iTunes
- iTunes songs go from 128kbps to 160kbps VBR or even 192kbps VBR.
- Can purchase/rent/"on demand" movies

The only other things I can think of that do not exist yet for the public is an iPhone or PDA/Blackberry type of device
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