Keystone NAP's new Bucks County modular data center planned for early 2015 opening


Tom Paine



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Keystone NAP's connectivity map / Keystone NAP



Typically, the announcement of a new data center facility will highlight its total square footage. But for Keystone NAP, with a planned data center in Fairless Hills, Bucks County announced today, that figure is somewhat irrelevant. Keystone NAP, founded by Philadelphia entrepreneur Peter Ritz (Xtium, AirClic), is largely modular in design and can be built out incrementally to meet customer demand. Using modular power units called KeyBlocks designed by Schneider Electric, Keystone NAP can be built to customer specifications, avoiding the challenges that often occur in filing a large, predetermined amount of capacity.

The KeyBlocks can also adapt to the power intensity of an individual customers's environment, greatly reducing power bills for some. The Fairless Hills facility, on the location of a long-closed steel factory (remember those?), is at the junction of several energy sources.

Keystone NAP says it will address "the underserved Mid-Atlantic market," a theme mentioned by other recent entrants into the area and generally confirmed by industry analysts. It also says Keystone NAP will be the first "advanced data center in the Northeast capable of meeting the needs of today's web-scale enterprises."

Keystone NAP, which received Series A1 funding from a group of Philadelphia investors led by Ira Lubert (of LLR Partners and other Philadelphia-area investment groups) and other investors arranged by DH Capital, plans an early 2015 opening.

Keystone NAP has also formed important network connectivity partnerships, Ritz told me in a phone interview. With networks built out directly to the Keystone NAP site, Sunesys and Comcast deliver dedicated bandwidth to Keystone NAP customers through independent dual feeds entering the facility from opposite sides of the campus. Through Sunesys, customers also gain access to diverse, carrier-neutral and redundant dark fiber routes to New York, New Jersey, Philadelphia, Northern Virginia and Chicago

Other new entrants into the Philly-area market include well-funded TierPoint, which acquired both the former Philadelphia Technology Park in June and Xand, an operator of data centers in the Northeast with three locations near Philadelphia, in October.

DH Capital, which is a huge player in financing data center deals, was also involved with the debt financing for TierPoint's acquisition of Xand.


Philly Tech News Tweets & Quotes of the week 11/16/2014






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"Let me put it in plain English, Uber." "This is your last chance with this commission ... to abandon its anarchist ways and to finally become a responsible, lawful corporate citizen."
-PUC board member John H. Cawley, after reluctantly voting yes to proposal to grant two-year license to Uber X allowing it to operate in Pennsylvania (but not Philadelphia).



Comcast CEO Brian Roberts: Comcast/Time Warner Cable merger going "full steam ahead."

"There is one important technical legal difference of opinion between the President and Comcast: we do not support reclassification of broadband as a telecommunications service under Title II."
-Comcast EVP David L. Cohen in Comcast blog Comcast Voices.




"The momentum is the shift of power from the enterprise to the consumer, [from] the Information Age to the Age of the Customer.”.... Companies are now “in an arms race to build customer service [and experience] access across multiple channels.”
Jonathan Brassington, CEO of Wayne-based LiquidHub, quoted in VentureBeat on the attraction of digital marketing firms to technology integrators.

"The Philadelphia region doesn’t have enough great companies, nor great entrepreneurs, to justify their 70-minute train ride or flight down from NYC or Boston."
-Michael Kopelman, General Partner, Edison Partners, paraphrasing the comments of a panel of out-of-town investors at 2014 IMPACT Capital Conference last month in
Philadelphia.



Philly Tech People News 11/16/2014







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SEER Interactive Founder Wil Reynolds Joins Board of Philly Startup Leaders (Business Wire)

Phila. leaders are major players on Wolf transition team (Philadelphia Inquirer)



Gov. Christie's chief of staff stepping down to join local health system (Philadelphia Business Journal)

AMETEK Announces Two Executive Appointments (PR Newswire)



RAM Technologies, Inc. Adds New Director of Implementation Services to Support Record Growth (PR Web)

Tech Leader Chris Miles Forecasts 2015 = Year of Business Productivity Software (Business 2 Community)




The company that could be Alibaba's Trojan Horse in the U.S. (Fortune)

Rosetta is changing, but Cleveland stays in plans (Crain's Cleveland Businesss)


SAP President of North America Jennifer Morgan discusses her vision for the company with Fox Business' Maria Bartiromo (video)






Simple SAP – the Plattner perspective (Denn Howlett/Diginomica)

The fall of SAY Media is a sign the barbell effect is increasing (Gigaom)


Edison Partners returns fire at out-of-town critics at IMPACT '14, but tends to find most of its own deals elsewhere



Tom Paine



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In a blog post entitled "Where's the Love for the City of Brotherly Love?", Edison Partners (Lawrenceville, NJ) General Partner Michael Kopelman wrote about how a panel of out-of-town VCs at 2014 IMPACT Capital Conference in Philadelphia late last month "dissed"(my words) the Philadelphia startup scene, paraphrasing their comments as saying "the Philadelphia region doesn’t have enough great companies, nor great entrepreneurs, to justify their 70-minute train ride or flight down from NYC or Boston."

The purpose of having an out-of-town panel(none of whom have closed a deal here) was to give Philly attendees an idea of how outside investors view the startup community here.

Kopelman then recites all the great companies Edison has helped build in Philadelphia over 30 years (true) that have been acquired, including Fiberlink (acquired by IBM), Verilogue (Publicis), Cadient (Cognizant), VirtualEdge (ADP), and Octagon (Accenture).

But Edison has not invested in a Philly metro-based company in quite some time. In fact, going through Edison's own funding announcements and CrunchBase I didn't find a single one going back to 2010, when there were follow-on rounds in some existing portfolio companies (including Health Market Science, which coincidentally announced today it was being acquired. Please let me know if I missed any.) There aren't too many Philly firms remaining in Edison's portfolio other than Neat Company, which I recently profiled. Also, there's Hamilton, NJ-based Billtrust, which took on Bain Capital Ventures as its lead investor two years ago, and Miria Systems of Media, PA. There were a couple of other small investments in central New Jersey.

When Edison raised its $249 million seventh fund in 2012, there were expectations it would deploy some of that capital in Philadelphia-area ventures. I'm not knocking Edison, which has an excellent track record (not believing in an overly provincial approach to VC investing), and I'm sure its people cover the region closely, but in fact most of Edison's recent investments have taken place in New York, Northern NJ, DC, with a few scattered in the midwest and south.


Links 11/13/2014: Roberts: "Full Steam Ahead" for merger; LexisNexis to acquire Health Market Science






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Comcast says Time Warner deal going 'full steam ahead' (Reuters)

Comcast CEO: "I was embarrassed" by customer service debacle (Fortune Term Sheet)

Comcast won’t join the internet TV crowd, but still looks to test video service (Gigaom)

Comcast Launches ‘Talking Guide’ for Blind and Visually Impaired (Lost Remote)


LexisNexis Announces Intention to Acquire Health Market Science (Businesswire)
Health Market Science, based in King of Prussia, had backing from Edison Partners and Cross Atlantic Capital Partners.

Is OnDeck Capital the Next Generation of Lender or Boiler Room? (Bloomberg/Business Week)
OnDeck investors include First Round Capital and Sapphire Ventures (SAP's venture arm).


Uber Gets OK for Much of Pennsylvania, Not Philly
(AP via ABC News)
UberX wins experimental license in PA(but not Philly), but must quit "anarchist ways"


Pennsylvania Pension Said to Offer $2 Billion Fund Stakes (Bloomberg)


Philly's AlphaPoint, a financial tech startup, rides the Bitcoin wave (Keystone Edge)

IMS Health turns to Amazon for hosting its cloud-based applications (GeekWire)


Links 11/12/2013: Wil Reynolds joins board of Philly Startup Leaders; Vishay lays out future vision







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LLR backs VersionOne (PE Hub)
Atlanta-based VersionOne has been backed by OpenView Venture Partners.

Obama’s call for an open Internet puts him at odds with regulators (Washington Post)


AT&T is putting its fiber deployment on ice over net neutrality — for now (Washington Post)

Comcast, Time Warner Oversold On Regulatory Worries: Analysts (Barron's Tech Trader Daily)


Vishay Focuses on the Connectivity, Mobility, and Sustainability Markets (Business Wire)

SEER Interactive Founder Wil Reynolds Joins Board of Philly Startup Leaders (Business Wire)

Meet the Mild-Mannered Investment Adviser Who's Humiliating the Administration Over Obamacare (Bloomberg)
Apparently, he's a Philly guy.

Alteva's Q3 UC revenues rise 7% amidst declining legacy voice declines (FierceTelecom)


Amazon Web Services reaches 1M business and government customers, with 40% revenue growth (GeekWire)

'The cloud is the new normal,' Amazon Web Services executive says (PC World)


SAP Seeks Silicon Valley Talent With Old-Fashioned Pitch (Bloomberg)


SmartThings to control Samsung's smart appliances (CNET)



Links 11/11/2014: SAP links up with Samsung; Neat cites seamless integration with Intuit QuickBooks Online






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Virtustream Nears $100 Million Revenue, Plans IPO in Year (Bloomberg)
Virtustream is rather closely aligned with SAP in terms of technology and running SAP applications in the Cloud, and SAP's VC arm is a major investor. In fact, I had thought that Virtustream might be a SAP acquisition candidate.

Lew Cirne’s New Relic Files to Go Public (Re/code)

SAP helps business embrace the internet of things (Beta News)

Samsung And SAP Partner On Mobile Devices For Business (TechCrunch)
Samsung's recent acquisition of IoT startup SmartThings one of the keys to partnership.

SAP hopes to help bring IoT to logistics and manufacturing (PC World)


SAP Helps Marketers Use Facebook Customer Data (Information Week)

Exclusive: Apple's enterprise assault gets into higher gear (Reuters)



AWS partners fight to fill gaps in Amazon’s hybrid cloud story (Gigaom)

Amazon Increasingly Duels Microsoft, Google in Cloud (Bloomberg)


Obama sparks fears over Comcast-Time Warner deal (CNBC)



STATEMENT ON PRESIDENT OBAMA'S COMMENTS ON THE OPEN INTERNET AND NETWORK NEUTRALITY (Comcast
Voices/Official Comcast Blog)

Canoe: 10 Billion VOD Ads Served (Multichannel News)

Neat Announces Seamless Integrations with Intuit’s QuickBooks Online (PR Web)