Exodus Opens Tokyo Data Center

TOKYO (04/27/2000) - Exodus Communications Inc. has opened its first data center in Tokyo, just over three months after announcing plans to do so, and announced it already has three customers.

Vanguard, an e-commerce solutions provider, iGrocer, an online supermarket and delivery company, and J-surplus, a business-to-business auction site, make up the company's initial roster of occupants at the center, which will be one of the biggest such data centers in Japan.

The center occupies 14,620 square meters in central Tokyo in a building purchased from Nomura Research Institute Ltd. (NRI). Exodus is forming a partnership with NRI in its Japan activities, with the local company responsible for marketing and promotion of the services and also Internet consulting, system integration and implementation, as well as business application development services.

With the opening of the new center, Exodus launches itself head first into the fast-growing Japanese Internet industry. It made its first move into Japan in late 1999 with the acquisition of Global OnLine Japan Co. Ltd., a Tokyo-based Internet access and Web hosting provider. [See "Exodus Makes an Entry into Japan's ISP Market," Nov. 28, 1999].

Exodus announced plans to open the Tokyo center, its first in Asia, in early January. [See "Exodus, Nomura Research to Build Japan Data Center," Jan. 18].

It was the first of what proved to be a string of similar announcements by companies eager to launch Japanese data center operations.

Days later, Asia Global Crossing Ltd., which is building a regional undersea fiber-optic cable network, and Internet Research Institute Inc. (IRI), a Japanese Internet consultancy, announced plans to form a data center joint venture. In early February, Internet Initiative Japan Inc. (IIJ) and Crosswave Communications Inc. announced ambitious plans for a network of 40 data centers across the country, and telecom giant NTT Communications Corp. entered the arena in March with plans for data centers both at home and overseas.

Coupled with announcements from a host of smaller players, Japan's data center market will jump from nonexistent at the beginning of this year to what is likely to be a highly competitive market before the end of the year.

Exodus Communications, in Santa Clara, California, can be found online at http://www.exodus.com/. Nomura Research Institute, in Tokyo, can be found online at http://www.nri.co.jp/.

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