. is opening its third data center in Phoenix, Arizona, in August. To accommodate expected growth, the managed cloud hosting service expanded its corporate headquarters in downtown’s Baltimore's SunTrust Bank Building last month and is hiring nine, all in IT, to its current 41 employees.
A $5 million loan from M&T Bank financed the Phoenix data center, CEO Vlad Friedman says. The company already has two data centers on the East Coast. The first opened in 2005 in a building near Baltimore’s Lexington Market; the second in 2010 in Ashburn, Va.
The company’s data center in Phoenix is intended to offer more options and more security for current customers and to attract future customers. “Our service hosts important web sites for companies that need to remain secure, online 24/7, backed up and safe from hackers,” says Friedman.
Customers will have the option of choosing their primary location for web hosting and a secondary location.
“Customers can choose between two completely separate geographic areas and different time zones,” says Friedman. “We want to attract more enterprise customers to host their information in Baltimore by leveraging the strategy of going West.”
Edgewebhosting offers hosting on the cloud and, since cloud hosting isn’t suitable for every client, a combination of cloud and other technologies. The company’s fee is based on a combination of resources and managed services, and is fixed with the customer beforehand.
“The services are the same. The only thing that changes is the scale,” says Friedman of fees that range from $300 to $100,000 per month.
Customers include health insurers Aetna and CareFirst BlueCross BlueShield, the Heritage Foundation, the Humane Society of the U.S.,Oxford English Dictionary, Columbia University and local advertising and marketing agencies.
Founded in 1998, the privately-financed company was originally located in Owings Mills, in Baltimore County. In 2005, it moved to the city because it needed a site that had the electricity and internet connectivity to handle thousands of servers.
Friedman says the company is on track to earn $13 million to $14 million in revenue for 2013. For the last six years, revenue has doubled every 36 months, and revenue from cloud hosting has grown 100 percent every six months for the past year.
The Baltimore data center expanded by 50 percent last year to handle customer demand. Edgewebhosting itself doubled its staff in the past 18 months, to its current 41, and has openings for an additional nine positions, for database administrators, server administrators and software developers.
Source: Vlad Friedman, Edgwebhosting Inc.
Writer: Barbara Pash