After more than a decade of operation, City Utilities is looking to sell off the climate-controlled data center it operates out of the Springfield Underground.
It's not because the facility, known as SpringNet Underground, hasn't been successful - the cavernous space in the former limestone quarry has proved popular with businesses that need a secure place to store computer servers and other equipment.
So popular, in fact, that "we're coming to the point where we're out of space," CU General Manager Scott Miller said.
2006 SpringNet® is a division of CU, which offers telecommunication services. SpringNet® has
SpringNet Continues Driving Jobs and Revenue for Local Community
Demand for SpringNet’s high-speed data services continues to grow steadily. Financial statements for City Utilities of Springfield show the network generated $16.4-million in operating revenue last year against costs of $13.2-million. Better yet, revenues have increased around 3% per year while cost increases are closer to 0.5%. The end result is close to $3 million in annual net income for SpringNet. And all of this comes from a network that only serves commercial and public sector clients because Missouri state law restricts municipal network provision to only “Internet service,” meaning SpringNet cannot offer triple-play packages to compete with incumbent providers.
One of the highlights of SpringNet’s economic development success has been the attraction and retention of travel giant Expedia. After a large national provider failed to deliver on negotiations with the company, SpringNet stepped in to make sure Expedia brought its call center to Springfield. That effort has paid off handsomely for SpringNet and the local community. Expedia now employs close to 900 in the area after announcing in July that it was hiring another 100 employees in Springfield.
Up next for SpringNet is an effort to leverage its fiber infrastructure to create even more jobs. Believing that future job growth will revolve around the advancements enabled by gigabit networks, SpringNet is working with the Mid-America Technology Alliance (MATA) to host a hackathon with partners in Kansas City to explore what is possible between gigabit cities.
As Murren and Christell tell it, someone in Springfield can now send data to Kansas City with a 5-millisecond delay. It’s like they are in same building despite being hundreds of miles apart. This capability spells opportunity for new ways of doing business and delivering services. SpringNet wants to help the gigabit community develop these opportunities.
No comments:
Post a Comment