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Hughes and EchoStar Ready Data Centers for Commercial Cloud Services Launch

| Nov 10, 2011 | Data Center and Cloud Services
| Analyst: Brian Washburn

Event Summary

November 11, 2011 – EchoStar and its subsidiary, Hughes Network Systems, have introduced Hughes Cloud Services & Hosting services, with a full commercial launch expected in early 2012. The company's cloud services, operated from data centers in Arizona and Wyoming, target businesses of any size in any industry. The company draws upon its experience managing large data streams and broadband services for businesses. The provider will offer clients rack space, software as a service (SaaS), cloud computing infrastructure design and managed IT services.

Quick Take


Analytical Summary

• Current Perspective: Positive on EchoStar’s (and subsidiary Hughes) introduction of an array of cloud services delivered from its data centers, because the company enters the line of business by combining its existing EchoStar data centers with the EchoStar and Hughes business customer base. EchoStar's brand may not have the data center/cloud services cachet that more established cloud specialists claim, but the company draws on major data center resources it originally developed for the extreme demands of feeding large blocks of video/data streams its satellite teleports.

• Vendor Importance:
Moderate to EchoStar/Hughes, because Hughes Network Systems' customer base, purchasing network services, is a natural customer to add data center/cloud services. Hughes relies on combinations of satellite and terrestrial broadband to meet the networking needs of its customers, which tend to have more lenient network performance requirements compared to dedicated services. EchoStar's high-performance data center experience may be somewhat overpowered for these customers' networks.

• Market Impact: Moderate to competitors that offer cloud with network services, because EchoStar launches into cloud services with facilities, capabilities and a business customer base ranging from small business and mid-market to enterprise customers. EchoStar executives' comments suggest the company is prepared to offer standalone cloud services (i.e., not requiring customers to contract its network services). With its resources and channels, the company has potential to be a strong competitor if it can get broader industry recognition as a cloud player.


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9/30/2011
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New Hughes Cloud Services & Hosting Solution

- Features Robust Security and Expert IT Support - Turnkey Service for Building and Managing Secure, Reliable Clouds - Builds on Multi-Industry Experience Managing Huge Data Flows

Englewood, CO, September 12, 2011-EchoStar Corporation (NASDAQ: SATS), along with its subsidiary Hughes, today announced its new Hughes Cloud Services & Hosting solution for businesses of any size in any industry. The turnkey offering brings the company's decades of experience managing huge data streams and broadband services to cloud computing across the entire business spectrum.

Backed by a global IT organization that manages real-time data and video services to 17 million customers worldwide, Hughes Cloud Services & Hosting provides companies with just one site or with hundreds of sites a comprehensive solution platform?including rack space, software as a service (SaaS), cloud computing infrastructure design, and complete corporate IT management.

The new service will be supported by two newly constructed secure data centers in Arizona and Wyoming which provide disaster recovery capabilities, high-bandwidth fiber network access, and the latest security and intrusion detection technology. Full electrical and mechanical redundancy provides the very highest levels of uptime and reliability.

Both are Department of Defense MAC I (Mission Assurance Category I) compliant, providing the most stringent protection for systems that handle information vital to operations, readiness, and mission effectiveness. Among the other benefits that Hughes Cloud Services & Hosting offers are:

Cost-effective, multi-tiered storage options;
- State-of-the-art monitoring and visibility extensible to the client;
- Easy-to-use provisioning portals; and
- Multi-carrier diverse connectivity

"Executives know that hosted solutions free up funds that can be invested in their core businesses, but they have to balance savings against security and reliability," said EchoStar CIO Mike Marcotte. "Hughes Cloud Services & Hosting offers years of experience moving enormous volumes of complex data over satellite and terrestrial networks. We combine the security and reliability of our IT and video systems with our experienced technical support staff to make hosted solutions a viable alternative to customers doing everything themselves."

EchoStar has operated for 25 plus years in industries such as full-motion video, which have huge data volumes and demand 24x7 uptime and fast response times, and Hughes is a world leader in managed network services across a wide range of business verticals. Their practical experience includes corporate applications such as enterprise resource planning (ERP) suites and industry-specific applications for markets such as retail, hospitality, banking, and mobile field service.