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Cloud IaaS Provider ProfitBricks Opens Second U.S. Data Center

ProfitBricks which provides channel-focused IaaS cloud services, has opened its second U.S. data center in Newark, New Jersey. ProfitBricks, based in Germany, helps service providers set up virtual data centers for public cloud projects at companies of all sizes, from small businesses to large enterprises.

The new East Coast data center joins ProfitBricks’ first U.S. data center in Las Vegas, as well as three Tier-4 data centers in Germany. The company’s U.S. headquarters are in Cambridge, Massachusetts.

“Cloud infrastructure services in the U.S. and Canada are on the rise and quickly gaining adoption with a projected growth rate of 18 percent this year,” Vice President of Business Development Aaron Garza said in a statement. “By opening a new data center space on the East Coast near New York City, we are able to offer a more strategic footprint so customers can freely decide where to store and process their data, and partners can expand their existing compute power.”

In the U.S., ProfitBricks is exclusively sold through Colorado-based Pax8, a cloud-centric distributor.

Data Center Expansion

ProfitBricks said it decided to offer enhanced geographical coverage for partners due to rapidly increasing demand for its services.

Gartner predicts the worldwide public cloud services market will reach $264.8 billion in 2017, up from $209.2 billion in 2016.

Service providers can set up virtual data centers through ProfitBricks by using the graphical Data Center Designer (DCD) tool or by using cloud APIs. Partners can freely choose between AMD or Intel processors.

ProfitBricks Founder and CTO Achim Weiss said the new data center location provides a strong “corner post” for continuous market growth. The company’s technology provides the groundwork for customers and partners to adapt to the digital age, he said.

“With our completely virtualized data center technology, software-defined networking, and cloud APIs, we deliver seamless ways of transition into the age of cloud-based digitalization to all of our clients,” he said in a statement.

ProfitBricks History and Milestones

Founded in Berlin in 2010, ProfitBricks spent more than a year in development and beta testing before launching its cloud computing service in 2012, first in Europe and then in the U.S.

The company received $19.5 million in funding in 2013 from its founders and United Internet AG, a European internet services provider.

The company dropped its IaaS prices that year, billing itself as the market leader in both price and performance. Then, in 2014, a second price drop slashed prices by another 30 percent.

In 2015, the company took on major cloud players like Amazon, Google and Microsoft by publicly vowing to match price and performance of any user workload. Price difference credits were offered to customers who found a comparable service with the same level of performance at a lower cost.

The company launched its Docker hosting platform in 2015, and in 2016 it added ultra-high-speed solid-state drive (SSD) and Intel Xeon Processor provisioning in all data centers.

ProfitBricks opened a San Antonio, Texas office in 2014 to further its U.S. expansion, but it closed that office in 2016 without explaining why.

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2 Comments

Comments

    Max Pruger:

    Congratulations to ProfitBricks for opening their East Coast DC. We looked forward to adding the new facility to our Workspace-as-a-Service (WaaS) solution, giving our ProfitBricks partners access to geographically distributed DCs on each coast.

      Joe Panettieri:

      Max: I hope all is well at CloudJumper. Keep us posted as you continue to expand your cloud instances with ProfitBricks. I know the company is channel-friendly, and we’re curious to see how ProfitBricks scales its business with partners. Especially since so many folks seem fixated on AWS and Azure at the moment.
      -jp

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