Switch, Ltd. v. Switch, Inc.
Filing
23
ORDER re Permanent Injunction. Signed by Judge Kent J. Dawson on 4/26/2019. (Copies have been distributed pursuant to the NEF - JQC)
Case 2:18-cv-00738-KJD-CWH Document 21-1 Filed 04/24/19 Page 2 of 6
1 W. WEST ALLEN
Nevada Bar No. 5566
2 wwa@h2law.com
JONATHAN W. FOUNTAIN
3 Nevada Bar No. 10351
jwf@h2law.com
4 HOWARD & HOWARD ATTORNEYS PLLC
3800 Howard Hughes Parkway, Suite 1000
5 Las Vegas, Nevada 89169
Telephone: (702) 257-1483
6 Facsimile: (702) 567-1568
7 SAMUEL CASTOR
Nevada Bar No. 11532
8 sam@switch.com
ANNE-MARIE BIRK
9 Nevada Bar No. 12330
abirk@switch.com
10 SWITCH, LTD.
7135 S. Decatur Blvd.
11 Las Vegas, Nevada 89118
Telephone: (702) 444-4102
12
Attorneys for Plaintiff Switch, Ltd.
13
UNITED STATES DISTRICT COURT
14
DISTRICT OF NEVADA
15
SWITCH, LTD., a Nevada limited liability
16 company,
Case No.: 2:18-cv-00738-KJD-CWH
17
18
Plaintiff,
FINDINGS OF FACT AND ORDER
FOR PERMANENT INJUNCTION
v.
19 SWITCH, INC., a Washington corporation,
20
Defendant.
21
22
23
This Court having reviewed and considered the Stipulation and proposed Entry of
24 Permanent Injunction submitted by Plaintiff Switch Ltd., (“Plaintiff Switch”) and Defendant
25 Switch, Inc. (“SwitchMe.com”) by and through their respective counsel of record, and having
26 examined the Exhibits attached herewith and had an opportunity to take judicial notice of, or hear
27
28
1
Case 2:18-cv-00738-KJD-CWH Document 21-1 Filed 04/24/19 Page 3 of 6
1 testimony on the same, and for good cause appearing therefore make the following findings of
2 fact:
3
THE COURT MAKES THE FOLLOWING FINDINGS OF FACT:
4
1.
On or about November 1, 2017, SwitchMe.com, a technology start-up company
5 located in Seattle, Washington, began providing a browser and credit card system under the marks
6 SWITCH,
, and SWITCHME.COM. In connection with its services, on or around
7 November 11, 2017, Defendant acquired the Internet domain name and created
8 the corresponding website.
2.
9
On or around March 13, 2017, Switch first became aware of SwitchMe.com, in a
10 press release about Defendant (see Exhibit A).
3.
11
On or around November 22, 2017, Plaintiff Switch sent SwitchMe.com a letter,
12 requesting dialogue and alerting Defendant Switch of the likelihood of confusion (see Exhibit B).
4.
13
On or around December 20, 2017, Plaintiff Switch began experiencing consumer
14 confusion in light of a press release issued by SwitchMe.com regarding appointment of a new
15 board of director for SwitchMe.com (see Exhibits C and D).
5.
16
On or around February 28, 2018, the New York Stock Exchange news about
17 Plaintiff Switch’s mark and ticker symbol included the news about SwitchMe.com
18 (see Exhibit E).
6.
19
Switch’s raised concerns with Defendant Switch that SwitchMe.com’s marks and
20 activities were causing actual confusion with Switch.
7.
21
Plaintiff Switch designs, constructs, and operates advanced technology
22 ecosystems, with physical and digital technology infrastructure, under the name SWITCH, and is
23 publicly traded on the New York Stock Exchange under the ticker symbol SWCH (see Exhibit F).
8.
24
Switch’s trademarks are central to its value because potential customers have many
25 options to choose where they can store their data and technology, locally, nationally and globally.
1
26 Plaintiff Switch competes locally , nationally and globally for data center clients, actively
27 competing with hundreds of competitive offerings in the form of a customer’s own office building
28
1
See Exhibit G, available at www.flexential.com one of several Las Vegas colocation competitors, Flexential.
2
Case 2:18-cv-00738-KJD-CWH Document 21-1 Filed 04/24/19 Page 4 of 6
2
1 deployments , a customer’s proprietary purpose built data center, an array of competing cloud
2 providers, and/or competing telecommunication providers, all of which are trying to compete for
3 client’s participating in the commerce of the World Wide Web (see Exhibits H-N discussing and
4 analyzing the “global data center market” (emphasis added)).
9.
5
Other Courts, including state and federal courts in Texas have found that data
6 center services are inherently global (see Exhibits O and P).
10.
7
Consequently, Switch competes nationally, and globally, with a vast array of
8 technology companies (not just colocation providers) and uses its brand to differentiate itself from
9 its national and global competition (see Exhibits H-N).
11.
10
Because Switch’s technology services compete with hundreds of other technology
11 competitors on a national and global market, which requires Switch to actively protect and
12 promote its trademarks and brand.
12.
13
To this end, Plaintiff Switch owns more than one hundred and forty (140)
14 “SWITCH” federal trademark registrations in various classes, including for data centers, cloud
15 computing, power, telecommunications, software, computers, vehicles, entrepreneurial services,
16 etc.
13.
17
Plaintiff Switch has spent several hundreds of millions of dollars designing,
18 building, operating, and marketing its technology offerings, to compete in the national and global
19 market place.
14.
20
Plaintiff Switch owns the mark SWITCH and multiple variants thereto, and has
21 continuously been using the trademark SWITCH in connection with its technology and service
22 offering, nationally, as early as August 31, 2003.
15.
23
Plaintiff Switch owns multiple U.S. federal trademark registrations for its
24 “SWITCH” marks, including but not limited to, SWITCH (U.S. Reg. No. 3,229,168), SWITCH
25 T-SCIF (U.S. Reg. No. 3,547,908), SWITCH WDMD (U.S. Reg. No. 3,540,816), SWITCHNAP
26
27
28
See Exhibit H, “7 Reasons Colocation Makes Sense” an industry which helps customers weigh the pros and cons
of having their own data centers, or using a colocation provider, or using a cloud provider, recognizing that data
centers originated in back offices of commercial office space called “server rooms” or “telco closets,” and many
businesses maintain their own data centers.
3
2
Case 2:18-cv-00738-KJD-CWH Document 21-1 Filed 04/24/19 Page 5 of 6
1 (U.S. Reg. No. 3,547,909), SWITCHNAP WORLD (U.S. Reg. No. 3,880,400), SWITCHFORCE
2 (U.S. Reg. No. 3,942,121), SWITCH MICRO-MOD (U.S. Reg. No. 4,062,244),
3 SWITCHSERVE (U.S. Reg. No. 4,058,546), SWITCHMOD (U.S. Reg. No. 3,984,525),
4 SWITCH L.D.C. (U.S. Reg. No. 3,984,524), SWITCHCLOUD I.C.E. (U.S. Reg. No. 4,062,248),
5 SWITCHSTACK (U.S. Reg. No. 4,107,725), SWITCH IC3 (U.S. Reg. No. 4,104,345),
6 SWITCHCUBE (U.S. Reg. No. 4,335,332), SWITCHSCRIBE (U.S. Reg. No. 4,217,085),
7 SWITCHGAUNTLET (U.S. Reg. No. 4,516,916) SWITCHGAUNTLET (U.S. Reg. No.
8 4,516,916) SWITCHWORKS (U.S. Reg. No. 3,942,079), SWITCHSAFE (U.S. Reg. No.
9 3,946,128), SWITCHMACROMOD (U.S. Reg. No. 3,984,966), SWITCH CLOUD AI (U.S. Reg.
10 No. 4,050,103) SWITCHEDUP (U.S. Reg. No. 4,062,245), SWITCHCORE (U.S. Reg. No.
11 4,062,254), and SWITCHMICRO-MOD (U.S. Reg. No. 4,137,600) (collectively hereinafter
12 referred to as the “Switch Marks”).
13
16.
Based on Plaintiff Switch’s federal registrations, and as has been found previously
14 by this Court, the mark SWITCH is famous (see Exhibit Q).
15
17.
Furthermore, based on Plaintiff Switch’s national and global competition,
16 marketing efforts, and extensive use, Plaintiff Switch owns the exclusive right to use the mark
17 SWITCH and variations thereof.
18
18.
The extensive advertising and promotion by Plaintiff Switch of the Switch Marks
19 throughout the United States and globally, to compete with national and global competitors, have
20 resulted in the SWITCH name and mark becoming distinctive and famous particularly for
21 technology services, including but not limited to telecommunications services, data center,
22 colocation, computer, software, consulting, design, power, and cloud computing services.
23 / / /
24 / / /
25 / / /
26 / / /
27 / / /
28 / / /
4
Case 2:18-cv-00738-KJD-CWH Document 21-1 Filed 04/24/19 Page 6 of 6
ORDER
1
2
IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:
3
1.
This Decree shall be the final judgment with prejudice of all claims each of the parties has
4 raised against the other in this lawsuit, including all claims and counterclaims.
5
2.
Plaintiff Switch’s request for Permanent Injunction is GRANTED, subject to any
6 transition period agreed to between the parties. Subject to any transition period agreed to between the
7 parties, SwitchMe, its respective officers, agents, servants, employees, affiliates, and/or all persons acting
8 in concert or participation with it, are permanently enjoined as follows: (a) from using Plaintiff Switch’s
9 SWITCH trademark, the Switch Marks, or variations thereof, alone or in combination with any other
10 letters, words, letter strings, phrases or designs, in commerce or in connection with any business or for any
11 other purpose (including, but not limited to, on web sites, social media platforms, news releases, and in
12 domain names); and (b) from registering, owning, leasing, selling or trafficking in any domain name
13 containing Plaintiff Switch’s Marks or variations thereof, alone or in combination with any other letters,
14 words, phrases or designs as the SWITCH mark is a famous mark based on Plaintiff Switch’s national and
15 global competition with other data centers, world-wide marketing efforts, and extensive use. Furthermore,
16 Plaintiff Switch owns the exclusive right to use the mark SWITCH and the Switch Marks.
17
3.
The motion to dismiss and counter-claims SwitchMe raised in this lawsuit are DENIED,
18 with prejudice and a permanent injunction is hereby ordered.
19
26
Dated this _____ day of April, 2019.
20
________________________________________
UNITED STATES DISTRICT JUDGE
21
22
Respectfully submitted by:
23 HOWARD & HOWARD ATTORNEYS
KAEMPFER CROWELL
/s/ W. West Allen
24 By:
W. West Allen, Nevada Bar No. 5566
25 3800 Howard Hughes Parkway, Suite 1000
Las Vegas, Nevada 89169
26 Attorneys for Plaintiff Switch, Ltd.
By:
/s/ Joni A. Jamison
Joni A. Jamison, Nevada Bar No. 11614
Robert McCoy, Nevada Bar No. 9121
1980 Festival Plaza Drive, Suite 650
Las Vegas, Nevada 89135
Attorneys for Defendant Switch, Inc.
27
28
5
Case 2:18-cv-00738-KJD-CWH Document 21-2 Filed 04/24/19 Page 1 of 1
INDEX OF EXHIBITS
Exhibit A- Switch Credit Card Article
Exhibit B- Cease and Desist Letter
Exhibit C- Switch, Inc. Adds Kevin T. Knight Article
Exhibit D- NYSE Image
Exhibit E- NYSE Newsfeed
Exhibit F- SWCH ticker
Exhibit G- Discover Flexential Colocation in Nevada
Exhibit H- Blog- 7 Reasons Colocation Makes Sense
Exhibit I- Market Watch Global Outlook and Forecast
Exhibit J- Arizton Global Data Center Market
Exhibit K- Market Research Future Data Centre Market
Exhibit L- Strategy Market Report and Global Forecast
Exhibit M- Mordor Intelligence Mega Data Center Market
Exhibit N- Vertiv Colocation Data Center Usage Report
Exhibit O- Cyrus Application for TRO
Exhibit P- Federal Extension Order Extending Temporary Restraining Order
Exhibit Q- Switch Firespotter Order Granting Stipulation for Entry of Permanent Injunction
Case 2:18-cv-00738-KJD-CWH Document 21-3 Filed 04/24/19 Page 1 of 3
EXHIBIT A
Lantern Credit Buys Machine Learning Library To Enhance Offers
Case 2:18-cv-00738-KJD-CWH Document 21-3 Filed 04/24/19 Page 2 of 3
PAYMENT METHODS
Switch Raises More Funding For Credit Card Update
Platform
By PYMNTS
Posted on March 13, 2017
http://www.pymnts.com/...s/artificial-intelligence/2017/lantern-credit-buys-machine-learning-library-to-enhance-offers-ai-arc/#disqus_thread[3/14/2017 8:35:38 AM]
Lantern Credit Buys Machine Learning Library To Enhance Offers
Case 2:18-cv-00738-KJD-CWH Document 21-3 Filed 04/24/19 Page 3 of 3
Switch, the startup that has an online platform to help consumers manage their credit cards, has
reportedly raised $400,000 in funding.
According to a report, the $400,000 in funding is from angel investors. Since launching in 2014,
Switch has raised close to $2 million.
“Today, credit and debit cards are the dominant payment solutions for consumers,” Switch
CEO Chris Hopen said in a statement, according to the report. “Switch is the first ever consumer
payment solution that automates both the challenge of secure account access and the ‘card on file’
problems users face every day.”
With Switch, customers can get updated information for their credit cards, which provides them with
a quick and efficient way to make sure their payments are up-to-date and better visibility into their
account information. The idea is also to enable people to update their payment information if the
credit card is lost, stolen or no longer in use by the consumer. As it stands, the user would have to
go to each website to change their payment information. It’s getting worse these days with all the
different online subscriptions that require credit card information. To keep things secure, Switch
includes encryption, two-factor authentication as well as other security features. Currently the
startup out of Seattle has 10 employees.
Switch’s latest round of funding comes at a time when FinTech startups are garnering more
attention from investors. Earlier this month Qapital, the FinTech startup, raised $12 million in
venture funding to expand its app that enables users to make goals and save money to reach those
goals. With the app, users can integrate their checking, savings and credit card accounts, so in
addition to setting financial goals, they can stay on top of their finances. TechCrunch reported the
funding will help increase the number of traditional banking features.
RELATED ITEMS: CREDIT CARDS, FINDING, FINTECH, STARTUPS, SWITCH, WHAT'S HOT
RECOMMENDED FOR YOU
http://www.pymnts.com/...s/artificial-intelligence/2017/lantern-credit-buys-machine-learning-library-to-enhance-offers-ai-arc/#disqus_thread[3/14/2017 8:35:38 AM]
Case 2:18-cv-00738-KJD-CWH Document 21-4 Filed 04/24/19 Page 1 of 3
EXHIBIT B
Case 2:18-cv-00738-KJD-CWH Document 21-4 Filed 04/24/19 Page 2 of 3
Case 2:18-cv-00738-KJD-CWH Document 21-4 Filed 04/24/19 Page 3 of 3
Case 2:18-cv-00738-KJD-CWH Document 21-5 Filed 04/24/19 Page 1 of 3
EXHIBIT C
Switch, Inc. Adds Consumer Payments and Loyalty Executive, Kevin T. Knight, to Its Board of Directors | Business Wire
Case 2:18-cv-00738-KJD-CWH Document 21-5 Filed 04/24/19 Page 2 of 3
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Switch, Inc. Adds Consumer Payments and Loyalty
Executive, Kevin T. Knight, to Its Board of Directors
Fintech Company Gains Financial Industry Recognition for Its Ability to Redeem Lost
Interchange Revenue from the Billions of Credit Cards Reissued Each Year
SWITCH, INC.
LinkedIn
Release Summary
Faceboo
Gaining financial industry recognition, Switch,
Inc. adds consumer payments and loyalty
Twitter
executive, Kevin T. Knight, to its Board of
Directors.
Reddit
Pinteres
Email
Addthis
Kevin Knight joins Switch, Inc. Board of Directors (Photo: Business Wire)
December 20, 2017 09:07 AM Eastern Standard Time
SEATTLE--(BUSINESS WIRE)--Switch, Inc., a financial technology company offering the first comprehensive platform to solve the credit card managem
and replacement problem for consumers, merchants, and card issuers, announced today that the company has added consumer payments and retail loy
executive Kevin T. Knight to its Board of Directors.
Switch, Inc. adds consumer payments and
loyalty executive, Kevin T. Knight, to its Board
of Directors
Knight has held many successful leadership roles instituting innovative credit payment
products and programs for such high-profile retail brands and financial companies as V
Nordstrom, Macy’s, Cabela’s and GE Capital.
“Kevin’s deep understanding of the financial payments industry, consumer behavior and
https://www.businesswire.com/news/home/20171220005207/en/Switch-Adds-Consumer-Payments-Loyalty-Executive-Kevin[12/27/2017 10:14:37 AM]
Switch, Inc. Adds Consumer Payments and Loyalty Executive, Kevin T. Knight, to Its Board of Directors | Business Wire
Case 2:18-cv-00738-KJD-CWH Document 21-5 Filed 04/24/19 Page 3 of 3
Tweet this
levels of customer experience will provide invaluable insights and relationship access
toward Switch’s business objectives,” said Chris Hopen, Founder and CEO of Switch, In
Today’s announcement underscores the growing recognition from financial leaders and the credit card and payments industry that Switch is bringing a
breakthrough technology solution that addresses a growing problem plaguing the financial industry and killing its profits.
“Switch not only resolves a consumer pain point and impediment to convenient mobile and online commerce, but provides card issuers with significant
volume and revenue upside by ensuring that the most updated payment credentials are easily deployed by their customers,” said Knight. “I am excited to
join the Switch team and support their efforts to provide automated consumer solutions for managing new and updated payment card information wherev
cardholders shop or make payments online.”
Knight joins Hopen; Spry Internet-in-a-Box and DataChannel Founder Dave Pool; and accomplished CEO and wireless pioneer Rich Begert, who all sit o
the board.
Knight joined VISA as Head of Credit and Debit Card Products, North America in 2012 and was instrumental in growing the consumer credit, debit and s
business suite, development of new features across all product lines, and expansion of Visa Analytics.
Prior to Visa, Knight was EVP and President of Nordstrom’s Credit Division and Chairman/CEO of Nordstrom fsb, a wholly-owned federal savings bank
#Hashtags
subsidiary. Knight built the retail loyalty program and supporting credit and debit payment products during his 14-year tenure with the company.
#payments
#seattle
#tech
Knight has also held a variety of leadership positions at GE Capital and served as Senior Vice President and General Manager of Macy’s Credit Services
#startup
#cardonfile
Switch acts as an automated assistant to update all consumer online payment accounts. The technology will redeem millions of lost purchasing dollars a
#consumertech
interchange revenue for retailers and financial institutions who are hit hard when consumer credit cards are out of circulation. #banking
#peopleonthemove
#userexperience
Switch is the only cardholder solution that uses machine learning technology and is seamlessly implemented and scaled without upending financial
#passwords
#fintech
institutions’ current technology infrastructures. The technology doesn’t require opt-in integrations with individual merchant sites, processors, acquirers or
card networks.
#creditcards
#creditunions
Cardholders can start using Switch to manage their online accounts by participating in its ongoing beta program at https://switchme.com/sign-up/.
#personalfinance
About Switch, Inc.
Release Versions
English EON:
Headquartered in Seattle, Switch is the fastest and easiest way to sign up, sign in, checkout, and switch payment methodsEnhanced Online News your
across thousands of
favorite websites. The company’s secure, proprietary and patent-pending automation technology gives users the ability to manage and update all of their
and Twitter.
online accounts in one place. Learn more about Switch at switchme.com or follow the company on Facebook More News
Contacts
Switch is led by Chris Hopen, technology veteran and entrepreneur who also founded Tappin, which was acquired by Globalscape in 2011. Hopen was a
Switch, Inc.
the Co-founder and Chief Technology Officer of Aventail, one of the first SSL VPN companies. Aventail was acquired by Sonicwall in 2007.
Katherine Chavez, +1 425-522-3683
Contacts
press@switchme.com
Switch, Inc.
Katherine Chavez, +1 425-522-3683
press@switchme.com
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https://www.businesswire.com/news/home/20171220005207/en/Switch-Adds-Consumer-Payments-Loyalty-Executive-Kevin[12/27/2017 10:14:37 AM]
EON: Enhanced Online News
Case 2:18-cv-00738-KJD-CWH Document 21-6 Filed 04/24/19 Page 1 of 2
EXHIBIT D
Case 2:18-cv-00738-KJD-CWH Document 21-6 Filed 04/24/19 Page 2 of 2
Case 2:18-cv-00738-KJD-CWH Document 21-7 Filed 04/24/19 Page 1 of 3
EXHIBIT E
Case 2:18-cv-00738-KJD-CWH Document 21-7 Filed 04/24/19 Page 2 of 3
From:
To:
Subject:
Date:
Attachments:
Feather Lake
Feather Lake
RE: Request to contact NYSE
Wednesday, February 28, 2018 12:07:55 PM
image001.png
FEATHER LAKE
SENIOR PARALEGAL
o +1 (702) 425-8429
m +1 (702) 239-7618
e feather@switch.com
From: Christopher Ix
Date: Tuesday, February 27, 2018 at 12:32 PM
To: Irmina Blaszczyk
Cc: Gabe Nacht , Thomas Morton , Sam Castor
Subject: Request to contact NYSE
Hi Irmina,
This morning I received a misleading Switch news article below from the NYSE Connect newsfeed. Although the article states “Switch” and references the “SWCH”
ticker, I believe the article is referring to a company called Switchme.com. Could you please contact NYSE to see if this can be rectified.
Thanks,
Chris
Case 2:18-cv-00738-KJD-CWH Document 21-7 Filed 04/24/19 Page 3 of 3
CHRISTOPHER IX
DIRECTOR OF FINANCIAL PLANNING AND ANALYSIS
o +1 (702) 479-3886
m +1 (702) 305-1244
e cix@switch.com
Case 2:18-cv-00738-KJD-CWH Document 21-8 Filed 04/24/19 Page 1 of 2
EXHIBIT F
Case 2:18-cv-00738-KJD-CWH Document 21-8 Filed 04/24/19 Page 2 of 2
Screen shot of:
https://www.google.com/search?q=new+york+stock+exchange+ticker+symble+swch&rlz=1C1GGRV_enUS751US751&oq=new+york+stock+exchange+ti
cker+symble+swch&aqs=chrome..69i57.7060j0j4&sourceid=chrome&ie=UTF‐8
Case 2:18-cv-00738-KJD-CWH Document 21-9 Filed 04/24/19 Page 1 of 5
EXHIBIT G
Welcome | Flexential
Case 2:18-cv-00738-KJD-CWH Document 21-9 Filed 04/24/19 Page 2 of 5
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Case 2:18-cv-00738-KJD-CWH Document 21-10 Filed 04/24/19 Page 1 of 7
EXHIBIT H
7 reasons why colocation makes sense for your business | The SHI Blog
Case 2:18-cv-00738-KJD-CWH Document 21-10 Filed 04/24/19 Page 2 of 7
7 reasons why colocation makes sense for your business
By SHI Staff
Posted October 8, 2015
In Data Center, Hardware, Professional Services, Solutions
1
Data centers are a lot like cafeterias for most organizations — a necessity, but not something they want to manage. Frankly, most
organizations are not in the business of making sandwiches or building and managing data centers. Owning and operating an in-house
data center is just not aligned with their core business.
Compared with operating an in-house data center, leveraging colocation services from a data center provider offers numerous benefits
that have driven steady adoption of these services over the years. Here are seven reasons why you should consider colocation data center
services for your organization.
1. Predictable cost structures and cost savings. A data center built for one company is expensive. A data center built for many
organizations brings down the cost for every firm using it. Organizations moving into colocation data centers are leveraging these
economies of scale by avoiding expensive capital expenditures for a fixed operating expenditure model.
In-house data centers require huge capital to build, and many organizations still fall short of the higher levels of redundancy found in
commercial colocation data centers. Costs mount for in-house support staff, as well as budgets for additional expansion as needed.
https://blog.shi.com/hardware/7-reasons-why-colocation-makes-sense-for-your-business/[4/12/2019 11:37:31 AM]
7 reasons why colocation makes sense for your business | The SHI Blog
Case 2:18-cv-00738-KJD-CWH Document 21-10 Filed 04/24/19 Page 3 of 7
Moving to a colocation center is also generally less expensive than a cloud solution for organizations with heavy hardware utilization
and longer refresh cycles. It’s the difference between using a taxi each day for a long commute and owning a car – taxis are great for
short, infrequent trips, but buying a car generally makes better economic sense for a daily long-distance commute. Organizations want
pricing stability, which is something they can’t get in every cloud environment; the variability in these services’ costs from month to
month can make it difficult to properly budget for them. In addition, it’s generally cheap to put data into the cloud, but can be
surprisingly expensive to get it back when a random disaster strikes.
2. 100 percent uptime. Commercial colocation data centers have near-100 percent uptime because of the redundancies built into their
facilities – a benefit most organizations cannot achieve in house. A good colocation data center will be equipped with a fully faulttolerant network, uninterruptible power supply (UPS), emergency backup generators, and HVAC systems that ensure customers won’t
go down during a natural disaster. Redundancies also allow the colocation provider to perform maintenance without taking a single
customer offline.
3. Scalability. Colocation facilities allow customers to quickly scale up their footprint based on their company’s growth. Adding racks –
one or 100 – is easy and generally more cost effective for growing organizations than expanding an in-house data center.
4. Support. Data centers have support teams ready 24/7/365 to manage customer needs. Additionally, most colocation centers offer
general smart hands services, such as replacing hard drives, physical reboots, and cabling of systems. Many data center providers now
offer fully managed support services, which can provide monitoring, maintenance, and management of the customers’ OS and
application layers. With colocation, organizations no longer need to worry about patch management and other support functions that
consume so much time of their IT staff.
This level of support and regular maintenance would prove prohibitively expensive for most organizations to handle internally. Rather
than supporting the day-to-day operations of a data center, IT employees can be placed in more strategic roles within their company, and
leave the day-to-day to the colocation provider.
5. Compliance. Compliance has become a centerpiece of data planning. In the financial and health care verticals especially, it is
exceedingly expensive to maintain compliant in-house data centers. Using a commercial colocation data center facility enables
organizations to more easily and cost effectively maintain compliance with ever-changing federal regulations and industry standards.
Many colocation facilities adhere to the specific administrative, physical, and technical safeguards set by the HITECH Act and are
HIPAA compliant. Many data center providers also offer HIPAA- and PCI-compliant disaster recovery (DR) services. While the public
cloud continues to grow in popularity, many financial and health care institutions still aren’t ready to put their most sensitive data into it.
Colocation remains a popular, compliant option.
6. Security. Colocation data centers provide 24/7/365 security. With perimeter fences, armed guards, restricted access badge access lists,
mantrap doors, biometric security, and CCTV camera systems, commercial colocation data centers are extremely secure facilities. On
the network side, many providers now offer intrusion detection, intrusion prevention, and firewall services to reduce attacks.
Organizations need secure environments, as no customer wants to make headlines for another data breach.
7. Disaster Recovery. Many customers have a primary data center in use today. But what if it goes down like many in-house data center
facilities did in superstorm Sandy? Colocation facilities allow customers to colocate servers for disaster recovery replication or leverage
additional disaster-recovery-as-a-service (DRaaS) offerings from the data center provider.
Other benefits to colocation
https://blog.shi.com/hardware/7-reasons-why-colocation-makes-sense-for-your-business/[4/12/2019 11:37:31 AM]
7 reasons why colocation makes sense for your business | The SHI Blog
Case 2:18-cv-00738-KJD-CWH Document 21-10 Filed 04/24/19 Page 4 of 7
What other factors do you consider when searching for a colocation center? What additional questions do you have? Let us know in a
comment below.
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7 reasons why colocation makes sense for your business | The SHI Blog
Case 2:18-cv-00738-KJD-CWH Document 21-10 Filed 04/24/19 Page 5 of 7
Colocation , Data Center
SHI Staff
COMMENTS
Derek Dewitt
September 30, 2017
Reply
I can see why a company would want to move to a colocation center so they can keep expenses down and expand faster. I like that
you mention how it’s also generally less expensive than a cloud solution for organizations. This sounds like an investment that will
pay itself off in the long run. Thanks for sharing!
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Case 2:18-cv-00738-KJD-CWH Document 21-11 Filed 04/24/19 Page 1 of 14
EXHIBIT I
Data Center Market - Global Outlook and Forecast 2018-2023 - MarketWatch
Case 2:18-cv-00738-KJD-CWH Document 21-11 Filed 04/24/19 Page 2 of 14
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PRESS RELEASE
Data Center Market - Global Outlook and Forecast
2018-2023
By
Published: Dec 11, 2018 4:01 p.m. ET
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NEW YORK, Dec. 11, 2018 /PRNewswire/ -- This market research report on global data center market offers
analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The
market study also includes insights on segmentation by electrical infrastructure (UPS systems, generators,
transfer switches & switchgear, rack PDU, and other electrical infrastructure), by mechanical infrastructure
(cooling systems, rack, and other infrastructure), by IT infrastructure (server, storage, and network), by tier
standard (Tier 1 & 2, Tier 3, and Tier 4), by general construction (building development, installation and
commissioning services, building design, physical security, and DCIM), and by geography (North America,
Europe, APAC, Latin America, and MEA).
Read the full report: https://www.reportlinker.com/p05398686
Data Center Market - Overview
The increasing focus in the adoption of advanced technologies such as cloud-based services and IoT will
augment the growth of the global data center market. The construction of hyperscale facilities spanning with
an area of over 200,000 square feet across the globe will create lucrative opportunities for leading vendors
operating in the global market. Companies such as Facebook, Google, Amazon Web Services (AWS), and
Microsoft are amongst the largest companies focusing on the development of modular and hyperscale data
center construction facilities. Colocation providers are investing millions of dollars and are focusing on the
APAC and Middle East regions towards the deployment of new facilities. The increasing investments
towards the development of a digital economy by laying submarine fiber cables, improving rural and urban
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broadband connectivity, and aiding in the establishment of new facilities that enable technological
advancements will drive the demand in the global market. The extensive use of 4G LTE technology and
upcoming 5G rollouts will increase the internet penetration and drive the growth of the global market. The
emergence of edge computing is one of the primary factors fostering facilities development in secondary
data center marketsacross the globe. The extensive use of services such as cloud, big data, IoT and artificial
intelligence is prompting operators to adopt high-performance mission critical IT infrastructure in the global
data center market.
The increasing efforts to reduce power consumption, carbon emissions, and promote operational efficiency
will attribute to the adoption of energy-efficient infrastructure in the global market. The leading vendors are
investing in development of design innovation and implementation of advanced cooling systems is propelling
the growth of the market. The global data center market is estimated to reach revenues of around $174
billion by 2023, growing at a CAGR of approximately 4% during the forecast period. The research report also
offers market size in square ft area and power capacity in megawatts (MW) across geographies.
Data Center Market - Dynamics
The adoption of hyperconverged infrastructure will have a higher impact on the growth of global data center
market because it enables operating software defined data center (SDDC) environments. Most of the
vendors in the market are involved in innovating its hyperconverged infrastructure (rack scale system)
offerings that include necessary hardware and software to process workloads with added simplicity,
flexibility, scalability and affordability. Several enterprises are focusing on the adoption of colocation spaces
comprising 1-10 rack systems, will prefer to procurement of converged or hyperconverged systems.
However, it is dependent on the cost of these systems and the operational needs. The use of these systems
can reduce the IT administrative tasks considerably. Predominant use case of hyperconverged infrastructure
is virtual desktop infrastructure (VDI) solutions. However, the use of these platforms for other workloads,
especially in a hybrid cloud environment is growing rapidly. Increase deployment of cloud workloads such as
artificial intelligence (AI), IoT, and big data will aid the growth of converged and hyperconverged
infrastructure in the global data center market during the forecast period.
Data Center Market - Segmentation
This market research report includes a detailed segmentation of the market by electrical infrastructure,
mechanical infrastructure, IT infrastructure, tier standard, general construction, and geography.
Data Center Market – By Electrical Infrastructure
Increase in deployment of fuel cells might have a major negative impact on the global data center market
The global data center market by electrical infrastructure is divided into UPS systems, generators, transfer
switches & switchgear, rack PDU, and other electrical infrastructure. UPS systems dominated the market
size in 2017, growing at a CAGR of more than 6% during the forecast period. The leading infrastructure
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providers are procuring modular rack level UPS systems that can support only that infrastructure with a
capacity of up to 40 kW in the global market. Moreover, the implementation of UPS systems per data hall
with capacity of around 2-3MW per hall to provide redundant backup power during an outage will attribute to
the growth of this segment in the global market. The top operators are investing in the development of
innovative UPS systems to reduce power wastage during conversion, improve their efficiency, and lower the
OPEX through lesser maintenance cost. The cost of procuring lithium-ion UPS systems will continue to
decline during the forecast period, growing the market for facilities USPs systems in the global data center
market.
Data Center Market – By IT Infrastructure
Demand for mission-critical servers, all-flash arrays, hybrid storage arrays, 25/50GbE Ethernet switch ports
will grow in the global data center market during forecast period
The IT infrastructure segment in the global data center market is classified into server, storage, and network.
The server infrastructure occupied majority of the market share in 2017, growing at a CAGR of around 2%
during the forecast period. The top operators are focusing on adoption of server infrastructurethat best suit
their workload needs. The selection of server infrastructure primary depends on factors such as form factors,
energy consumption, and virtualization technologies in the global market. In the server segment the
processor based on x86 architecture dominates the market with around 85% of the share. The vendors are
offering servers suitable for cloud infrastructure comprising multicore processors, and high capacity memory
to grow it the adoption rate in the global data center market. The companies also prefer severs that can
enable them to reduce space in the facilities environment meanwhile providing higher performance. The
adoption of server infrastructure based on open community project (OCP) designswill attribute to the growth
of IT infrastructure in the global data center market. This research report also includes market size analysis
on hard disk drives (HDD), solid state drives (SSD), all flash array systems, hybrid array systems, and
shipment of server and network switches (1/10/25/40/50/100 GbE).
Data Center Market – By Mechanical Infrastructure
Free cooling technique will grow in the US and European Continent, where APAC region will be dominated
by water-based cooling techniques in the global data center market
The global data center market by mechanical infrastructure is segmented into cooling systems, rack, and
other infrastructure. Cooling systems segment to dominate the market share in 2017, growing at a CAGR of
over 5% during the forecast period. The use of indirect evaporative cooler and air or water-side economizers
across countries with colder climatic conditions will propel the growth of this segment in the global market.
The integration of 2N redundant cooling systems across Tier 3 facilities will revolutionize the global market.
The leading vendors are offering Energy Star certified systems with in-built redundant cooling capacity to
attract customers in the market. The operational metrics such as power usage effectiveness (PUE), waterusage effectiveness (WUE), and carbon usage effectiveness (CUE) are gaining immense importance in the
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global data center market.
Data Center Market – By General Construction
Design of sustainable facilities environment with PUE of less than 1.3 coupled with integration of AI and
remote monitoring to grow in the global data center market
The general construction segment in the global data center market is categorized into building development,
installation and commissioning services, building design, physical security, and DCIM. Physical security
segment occupied a considerable market share in 2017, growing at a CAGR of over 9% during the forecast
period. The installation of security systems that comprise of sensors that are integrated with the existing
DCIM solutions for real-time remote monitoring benefits will propel the growth of this segment in the global
market. The facilities operators are opting for analytics of video surveillance recording and protecting
facilities from EMP and lightning during natural disasters in the global market. The integration of robot
monitoring systems with sensor and video surveillance in various facilities across the world will propel the
growth of the global data center market.
Data Center Market – By Tier Standards
The construction of Tier 3 facilities dominates the market and flexible design pattern are being followed to
add more redundancy on support infrastructures in the global data center market
The global data center market by tier standards is segmented into Tier 1 & 2, Tier 3, and Tier 4. Tier 3
standard facilities dominated the market share in 2017, growing at a CAGR of more than 5% during the
forecast period. Most of the new facilities deployment in the market are of Tier 3 standards with a minimum
of N+1 redundancy. The operators are also offering facilities that can be reconfigured with up to 2N+1
redundancy as the demand arises to sustain the competition in the global data center market. The
investment in Tier 3 facilities is about $780 per square feet, where the construction cost varies based on the
facility location. This entirely depends on the redundancy adopted by infrastructure, with a minimum of N+1.
The construction of Tier 4 facilities is expected to experience significant growth in the global data center
market during the forecast period.
Data Center Market – By Geography
Latin America and MEA will experience higher compound annual growth rate in the global data center
market during forecast period
The geographical segmentation in the global data center market is classified into North America, Europe,
APAC, Latin America, and MEA. Americas occupied the largest market share in 2017, growing at a CAGR of
over 2% during the forecast period. The billion dollar investments by colocation providers, hyperscale
operators, enterprises, and government agencies is propelling the growth of the Americas in the global
market. The US dominates the market when it comes to adoption of innovative infrastructure solutions such
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as all-flash arrays, hybrid arrays and hyperconverged infrastructure solutions. The increasing interest to
procure renewable energy sources and low power cost sources will encourage operators to invest in the
development of the market in Americas. The adoption of 2N redundancy configuration will grow among UPS
systems and PDUs, while generators and cooling systems are still adopting N+1 or N+N configurations in
the Americas. Innovations in power sources such as lithium-ion UPS systems, DRUPS, and fuel cells will
propel the development of this region in the global data center market.
Key Countries Profiled
The key countries profiled in the report are:
• US
• Canada
• Western Europe
• Nordic Region
• Eastern Europe
• China & Hong Kong
• Australia
• Singapore
Key Vendor Analysis
The global data center market comprises of various vendors who control the level of competition. The
market comprises of multiple participants in the vendor space. The vendors in this report is categorized in to
three participants namely,
• Data Center Critical (IT) Infrastructure Providers: It include companies that sell IT infrastructure such as
server, storage and network products.
• Data Center Support Infrastructure Providers: It includes vendor involved in providing power, cooling, rack,
security, and infrastructure management products.
• Data Center Construction Contractors: It include general contractors, and sub-contractors involved in
design, project management, installation and commissioning services of facilities infrastructure
Multiple innovations are carried out by vendors operating in each space. IT infrastructure vendors are
focusing on providing solutions that best suits business operational environments. Power players are
focusing on efficiency, cooling players focusing on reducing power consumption, and architectural firms are
incorporating innovative design to gain larger global data center market share over the next few years.
The major vendors in the global market are:
• By IT Infrastructure Providers
• HPE
• Cisco
• Dell Technologies
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• IBM
• Huawei
• By Support Infrastructure Providers
• ABB
• Eaton
• Rittal
• Schneider Electric
• STULZ
• Vertiv
• Caterpillar
• Cummins
• By Facilities Operators
• AECOM
• DPR Construction
• HDR Architecture
• Holder Construction
• Jacobs Engineering Group
• Mercury Engineering
• M+W Group
Other prominent vendors include Arista, Atos, Broadcom, Extreme Network, Hitachi Vantara, Inspur Group,
Inventec, Juniper, Lenovo, NEC, NetApp, Oracle, Pure Storage, Quanta Computer, Super Micro Computer,
Wistron, Airedale Air Conditioning, Alfa Laval, Altima Technologies (NetZoom), Bosch Security Systems
(Robert Bosch), Condair Group, Delta Group, GE, Legrand, Nlyte Software, Mitsubishi Electric Corporation,
MTU On Site Energy, Socomec Group, Trane (Ingersoll Rand), Arup Group, Cap Ingelec, Corgan, CSF
Group, Fluor Corporation, Fortis Construction, Gensler, Gilbane Building Co., Jones Engineering Group,
KKR Investment Group, Morrison Hershfield, Mortenson Construction, Structure Tone, Syska Hennessy
Group, and Whiting-Turner Contracting
Key market insights include
1. The analysis of global data center market provides market size and growth rate for the forecast period
2018-2023.
2. It offers comprehensive insights on current industry trends, trend forecast, and growth drivers about the
global data center market.
3. The report provides the latest analysis of market share, growth drivers, challenges, and investment
opportunities.
4. It offers a complete overview of market segments and the regional outlook of global data center market.
5. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market
strategies to gain competitive advantage.
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Report Snapshot
The global data center market size is expected to reach revenues of around $174 billion by 2023, growing at
a CAGR of about 4% 2018–2023.
The global data center market is driven by increasing investments made by hyperscale developers such as
Apple, Facebook, Google, AWS, Microsoft, Alibaba, Baidu, OVH, and China Telecom. The focus on
developing a digital economy is one of the primary factors attributing to the increasing demand in the global
data center market. The market research report provides in-depth market analysis and segmental analysis of
the global data center market by electrical infrastructure, mechanical infrastructure, IT infrastructure, tier
standard, general construction, and geography.
Base Year: 2017
Forecast Year: 2018–2023
The study considers the present scenario of the global data center market and its market dynamics for the
period 2018?2023. It covers a detailed overview of several market growth enablers, restraints, and trends.
The report covers both the demand and supply side of the global data center market. Also, the study profiles
and analyzes 19 leading and 49 other prominent market participants across infrastructure vendors, data
center general construction contractors, and colocation providers operating in the global data center market.
Major Vendors in the Global Data Center Market
• By IT Infrastructure Providers
• HPE
• Cisco
• Dell Technologies
• IBM
• Huawei
• By Support Infrastructure Providers
• ABB
• Eaton
• Rittal
• Schneider Electric
• STULZ
• Vertiv
• Caterpillar
• Cummins
• By Facilities Operators
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• AECOM
• DPR Construction
• HDR Architecture
• Holder Construction
• Jacobs Engineering Group
• Mercury Engineering
• M+W Group
Other Prominent Players in the Global Data Center Market
• By Other Critical Infrastructure Providers
• Arista
• Atos
• Broadcom
• Extreme Network
• Hitachi Vantara
• Inspur Group
• Inventec
• Juniper
• Lenovo
• NEC
• NetApp
• Oracle
• Pure Storage
• Quanta Computer
• Super Micro Computer
• Wistron
• By Other Prominent Infrastructure Providers
• Airedale Air Conditioning
• Alfa Laval
• Altima Technologies (NetZoom)
• Bosch Security Systems (Robert Bosch)
• Condair Group
• Delta Group
• GE
• Legrand
• Nlyte Software
• Mitsubishi Electric Corporation
• MTU On Site Energy
• Socomec Group
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• Trane (Ingersoll Rand)
• Other Prominent Construction Contractors
• Arup Group
• Cap Ingelec
• Corgan
• CSF Group
• Fluor Corporation
• Fortis Construction
• Gensler
• Gilbane Building Co.
• Jones Engineering Group
• KKR Investment Group
• Morrison Hershfield
• Mortenson Construction
• Structure Tone
• Syska Hennessy Group
• Whiting-Turner Contracting
Data Center Market Segmentation by Electrical Construction
• UPS systems
• Generators
• Transfer Switch and Switchgear
• Rack PDU
• Other Electrical Infrastructure
Market Segmentation by Mechanical Infrastructure
• Cooling Systems
• Rack
• Other Infrastructure
Market Segmentation by IT Infrastructure
• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure
Market Segmentation by Cooling Systems
• CRAC & CRAH Systems
• Chillers
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• Cooling Towers & Dry Coolers
• Economizer & Evaporative Coolers
• Other Cooling Units
Global Data Center Market Segmentation by Cooling Technique
• Air-based Cooling Technique
• Liquid-based Cooling Technique
• Direct Liquid and Immersion Cooling Techniques
• Water-based Cooling Technique
Market Segmentation by General Construction
• Building Development
• Installation & Commissioning
• Building Design
• Physical Security
• DCIM
Market Segmentation by Tier Standard
• Tier 1 and Tier 2
• Tier 3
• Tier 4
Market Segmentation by Geography
• North América
• US
• Canada
• Europe
• Western Europe
• Eastern Europe
• Nordic Region
• APAC
• China
• Hong Kong
• Austràlia
• Singapore
• Latin America
• MEA
Read the full report: https://www.reportlinker.com/p05398686
https://www.marketwatch.com/press-release/data-center-market---global-outlook-and-forecast-2018-2023-2018-12-11[4/12/2019 11:38:25 AM]
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About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest
industry data so you get all the market research you need - instantly, in one place.
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View original content:http://www.prnewswire.com/news-releases/data-center-market---global-outlook-andforecast-2018-2023-300763563.html
SOURCE Reportlinker
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The MarketWatch News Department was not involved in the creation of the content.
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Data Center Market - Global Outlook and Forecast 2018-2023
Jun-2018
Pages: 400
SKU: ARZ180601
Tags: Arista
, Atos
, Hitachi Vantara
, Inspur
, Inventec
, Extreme Network
, Juniper
,
Super Micro Computer
, Wistron
, Altima Technologies (NetZoom)
, MTU On Site
Energy
, Corgan
, Socomec Group
, Condair Group
, KKR Investment Group (Aceco TI
REGIONAL REPORT
S.A.)
, M+W Group
, Bosch Security Systems (Robert Bosch)
, Trane (Ingersoll Rand)
,
Vertiv
, Structure Tone
, Mortenson Construction
, Morrison Hershfield
, Gilbane
Building Co
, Fortis Construction
, Fluor Corporation
, Nlyte Software
, Cummins
,
Caterpillar
, Syska Hennessy Group
, ABB
, NetApp
, Arup Group
, Gensler
, HDR
Architecture
, Jones Engineering
, General Electric
, AECOM
, Mitsubishi Electric
Corp.
, DPR Construction
, Holder Construction
, NEC
, Jacobs Engineering
, CSF
group
, Mercury Engineering
, Stulz
, The Whiting-Turner Contracting.
, Alfa Laval
,
Airedale
, Eaton
, Delta Group
, Legrand
, Lenovo
, Dell
, Oracle
, Pure Storage
,
Huawei
, IBM
, Quanta Computer
, Schneider Electric
, Cisco System
, Rittal
, Hewlett
Packard Enterprise (HPE)
, Broadcom
.
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TABLE OF CONTENTS
LIST OF EXHIBITS
This market research report on global data center market offers analysis on market size & forecast, market
share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on
segmentation by electrical infrastructure (UPS systems, generators, transfer switches & switchgear, rack
PDU, and other electrical infrastructure), by mechanical infrastructure (cooling systems, rack, and other
infrastructure), by IT infrastructure (server, storage, and network), by tier standard (Tier I & II, Tier III, and Tier
IV), by general construction (building development, installation and commissioning services, building design,
physical security, and DCIM), and by geography (North America, Europe, APAC, Latin America, and MEA).
Key highlights of global data center market:
The major drivers of data center market growth are increase in data, rising number of social media
users, connected reality, and higher penetration of smart devices.
Innovations in cooling systems, development of tropical and underwater facilities, and battery
technology is expected to revolutionize the market landscape.
Renewable energy source contribute to the mega data center development. Initiatives like RE100 will
play a role in the use of renewable energy among data centers.
The investments in more than 30 submarine cable projects will majorly boost data center
development across developing countries, specifically in the APAC region.
Countries such as the US, the UK, France, Germany, China, and Japan will be the major contributor
towards the adoption of high-performance infrastructure that enables processing of mission-critical
workloads.
Data Center Market - Overview
The increasing focus in the adoption of advanced technologies such as cloud-based services and IoT will
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augment the growth of the global data center market. The construction of hyperscale facilities spanning
with an area of over 200,000 square feet across the globe will create lucrative opportunities for leading
vendors operating in the global data center market. Companies such as Facebook, Google, Amazon Web
Services (AWS), and Microsoft are amongst the largest companies focusing onthe development of modular
and hyperscale datacenter construction facilities. Colocation providers are investing millions of dollars
and are focusing on the APAC and Middle East regions towards the deployment of new facilities. The
increasing investments towards the development of a digital economy by laying submarine fiber cables ,
improving rural and urban broadband connectivity, and aiding in the establishment of new facilities that
enable technological advancements will drive the demand in the global data center market. The extensive
use of 4G LTE technology and upcoming 5G rollouts will increase the internet penetration and drive the
growth of the global data center market. The emergence of edge computing is one of the primary factors
fostering facilities development in secondary data center markets across the globe. The extensive use
of services such as cloud, big data, IoT and artificial intelligence is prompting operators to adopt highperformance mission critical IT infrastructure in the global data center market.
The increasing efforts to reduce power consumption, carbon emissions, and promote operational
efficiency will attribute to the adoption of energy-efficient infrastructure in the global data center market. The
leading vendors are investing in development of design innovation and implementation of advanced cooling
systems is propelling the growth of the data center market. The global data center market is estimated to
reach revenues of around $174 billion by 2023, growing at a CAGR of approximately 4% during the forecast
period. The research report also offers market size in square ft area and power capacity in megawatts (MW)
across geographies.
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Data Center Market - Dynamics
The adoption of hyper converged infrastructure will have a higher impact on the growth of global data center
market because it enables operating software defined datacenter (SDDC) environments. Most of the vendors
in the market are involved in innovating its hyper converged infrastructure (rack scale system) offerings that
include necessary hardware and software to process workloads with added simplicity, flexibility, scalability
and affordability. Several enterprises are focusing on the adoption of colocation spaces comprising 1-10
rack systems, will prefer to procurement of converged or hyper converged systems. However, it is dependent
on the cost of these systems and the operational needs. The use of these systems can reduce the IT
administrative tasks considerably. Predominant use case of hyper converged infrastructure is virtual desktop
infrastructure (VDI) solutions. However, the use of these platforms for other workloads, especially in a hybrid
cloud environment is growing rapidly. Increase deployment of cloud workloads such as artificial intelligence
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(AI), IoT, and big data will aid the growth of converged and hyper converged infrastructure in the global data
center market during the forecast period.
Data Center Market - Segmentation
This market research report includes a detailed segmentation of the market by electrical infrastructure,
mechanical infrastructure, IT infrastructure, tier standard, general construction, and geography.
Data Center Market – By Electrical Infrastructure
Increase in deployment of fuel cells might have a major negative impact on the global data center market
The global data center market by electrical infrastructure is divided into UPS systems, generators, transfer
switches & switchgear, rack PDU, and other electrical infrastructure. UPS systems dominated the market size
in 2017, growing at a CAGR of more than 6% during the forecast period. The leading infrastructure providers
are procuring modular rack level UPS systems that can support only that infrastructure with a capacity of
up
to
40
kW
in
the
global
data
center
market.
Moreover,
the
implementation
of
UPS systems per data hall with capacity of around 2-3MW per hall to provide redundant backup power
during an outage will attribute to the growth of this segment in the global data center market. The top
operators are investing in the development of innovative UPS systems to reduce power wastage during
conversion, improve their efficiency, and lower the OPEX through lesser maintenance cost. The cost of
procuring lithium-ion UPS systems will continue to decline during the forecast period, growing the market for
facilities UPS systems in the global data center market.
Data Center Market – By IT Infrastructure
Demand for mission-critical servers, all-flash arrays, hybrid storage arrays, 25/50GbE Ethernet switch ports
will grow in the global data center market during forecast period
The IT infrastructure segment in the global data center market is classified into server, storage, and network.
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The server infrastructure occupied majority of the market share in 2017, growing at a CAGR of around 2%
during the forecast period. The top operators are focusing on adoption of server infrastructure that best
suit their workload needs. The selection of server infrastructure primary depends on factors such as form
factors, energy consumption, and virtualization technologies in the global market. In the server segment the
processor based on x86 architecture dominates the data center market with around 85% of the share. The
vendors are offering servers suitable for cloud infrastructure comprising multicore processors, and high
capacity memory to grow it the adoption rate in the global data center market. The companies also prefer
severs that can enable them to reduce space in the facilities environment meanwhile providing higher
performance. The adoption of server infrastructure based on open community project (OCP) designs
will attribute to the growth of IT infrastructure in the global data center market. This research report also
includes market size analysis on hard disk drives (HDD), solid state drives (SSD), all flash array systems,
hybrid array systems, and shipment of server and network switches (1/10/25/40/50/100 GbE).
Data Center Market – By Mechanical Infrastructure
Free cooling technique will grow in the US and European Continent, where APAC region will be dominated by
water-based cooling techniques in the global data center market
The global data center market by mechanical infrastructure is segmented into cooling systems, rack, and
other infrastructure. Cooling systems segment to dominate the market share in 2017, growing at a CAGR of
over
5%
during
the
forecast
period.
The
use
of indirect evaporative cooler and
air
or
water-side economizers across countries with colder climatic conditions will propel the growth of this
segment in the global data center market. The integration of 2N redundant cooling systems across
Tier III facilities will revolutionize the global market. The leading vendors are offering Energy Star certified
systems with in-built redundant cooling capacity to attract customers in the market. The operational metrics
such as power usage effectiveness (PUE ), water-usage effectiveness (WUE), and carbon usage
effectiveness (CUE ) are gaining immense importance in the global data center market.
Data Center Market – By General Construction
Design of sustainable facilities environment with PUE of less than 1.3 coupled with integration of AI and
remote monitoring to grow in the global data center market
The general construction segment in the global data center market is categorized into building development,
installation and commissioning services, building design, physical security, and DCIM. Physical security
segment occupied a considerable market share in 2017, growing at a CAGR of over 9% during the forecast
period. The installation of security systems that comprise of sensors that are integrated with the existing
DCIM solutions for real-time remote monitoring benefits will propel the growth of this segment in the global
market. The facilities operators are opting for analytics of video surveillance recording and protecting
facilities from EMP and lightning during natural disasters in the global market. The integration of
robot monitoring systems with sensor and video surveillance in various facilities across the world will
propel the growth of the global data center market.
Data Center Market – By Tier Standards
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The construction of Tier III facilities dominates the market and flexible design pattern are being followed to
add more redundancy on support infrastructures in the global data center market
The global data center market by tier standards is segmented into Tier I & II, Tier III, and Tier IV. Tier
III standard facilities dominated the market share in 2017, growing at a CAGR of more than 5% during the
forecast period. Most of the new facilities deployment in the market are of Tier III standards with a
minimum of N+1 redundancy . The operators are also offering facilities that can be reconfigured with up to
2N+1 redundancy as the demand arises to sustain the competition in the global data center market. The
investment in Tier III facilities is about $780 per square feet, where the construction cost varies based on the
facility location. This entirely depends on the redundancy adopted by infrastructure, with a minimum of N+1.
The construction of Tier IV facilities is expected to experience significant growth in the global data center
market during the forecast period.
Data Center Market – By Geography
Latin America and MEA will experience higher compound annual growth rate in the global data center market
during forecast period
The geographical segmentation in the global data center market is classified into North America, Europe,
APAC, Latin America, and MEA. Americas occupied the largest market share in 2017, growing at a CAGR of
over 2% during the forecast period. The billion dollar investments by colocation providers, hyperscale
operators, enterprises, and government agencies is propelling the growth of the Americas in the global data
center market. The US dominates the market when it comes to adoption of innovative infrastructure solutions
such as all-flash arrays, hybrid arrays and hyperconverged infrastructure solutions. The increasing interest to
procure renewable energy sources and low power cost sources will encourage operators to invest in the
development of the data center market in Americas. The adoption of 2N redundancy configuration will grow
among UPS systems and PDUs , while generators and cooling systems are still adopting N+1 or N+N
configurations in the Americas. Innovations in power sources such as lithium-ion UPS systems, DRUPS, and
fuel cells will propel the development of this region in the global data center market.
Key Countries Profiled
US
Canada
Western Europe
Nordic Region
Eastern Europe
China & Hong Kong
Australia
Singapore
Key Vendor Analysis
The global data center market comprises of various vendors who control the level of competition. The market
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comprises of multiple participants in the vendor space. The vendors in this report is categorized in to three
participants namely,
Datacenter Critical (IT) Infrastructure Providers: It include companies that sell IT infrastructure
such as server, storage and network products.
Datacenter Support Infrastructure Providers: It includes vendor involved in providing power,
cooling, rack, security, and infrastructure management products.
Data Center Construction Contractors: It include general contractors, and sub-contractors involved
in design, project management, installation and commissioning services of facilities infrastructure
Multiple innovations are carried out by vendors operating in each space. IT infrastructure vendors are
focusing on providing solutions that best suits business operational environments. Power players are
focusing on efficiency, cooling players focusing on reducing power consumption, and architectural firms are
incorporating innovative design to gain larger global data center market share over the next few years.
The major vendors in the global data center market are:
By IT Infrastructure Providers
HPE
Cisco
Dell Technologies
IBM
Huawei
By Support Infrastructure Providers
ABB
Eaton
Rittal
Schneider Electric
STULZ
Vertiv
Caterpillar
Cummins
By Facilities Operators
AECOM
DPR Construction
HDR Architecture
Holder Construction
Jacobs Engineering Group
Mercury Engineering
M+W Group
Other prominent vendors include Arista, Atos, Broadcom, Extreme Network, Hitachi Vantara, Inspur
Group, Inventec, Juniper, Lenovo, NEC, NetApp, Oracle, Pure Storage, Quanta Computer, Super Micro
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Computer, Wistron, Airedale Air Conditioning, Alfa Laval, Altima Technologies (NetZoom), Bosch Security
Systems (Robert Bosch), Condair Group, Delta Group, GE, Legrand, Nlyte Software, Mitsubishi Electric
Corporation, MTU On Site Energy, Socomec Group, Trane (Ingersoll Rand), Arup Group, Cap Ingelec,
Corgan, CSF Group, Fluor Corporation, Fortis Construction, Gensler, Gilbane Building Co., Jones
Engineering Group, KKR Investment Group, Morrison Hershfield, Mortenson Construction, Structure Tone,
Syska Hennessy Group, and Whiting-Turner Contracting
Key market insights include
1. The analysis of global data center market provides market size and growth rate for the forecast period
2018-2023.
2. It offers comprehensive insights on current industry trends, trend forecast, and growth drivers about the
global data center market.
3. The report provides the latest analysis of market share, growth drivers, challenges, and investment
opportunities.
4. It offers a complete overview of market segments and the regional outlook of global data center market.
5. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market
strategies to gain competitive advantage.
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Global Data Center Market, By Type (Corporate data centers, Web hosing data
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centers), Density (Low, Medium, High, Extreme), and Verticals (Banking & Financial
Services, Telecom & IT, Government, Healthcare) – Forecas to 2023
Sample
Market Synopsis of Data Centre Market:
Market Scenario:
Data Centers refers to virtual or physical infrasructures that are used by enterprises to
sore a large amount of mission-critical data. The data centers assis in sorage,
Quesion
Discount
Order
Info
Refer
retrieval, and processing of this data. These data centers require multiple backs up
supply units, networking connections, and cooling sysems for running the enterprise's
core applications. The data centers include a number of elements such as electrical
switches, power disribution units, uninterruptible power supplies, ventilation, and
provisions for network connectivity. Modern data centers make use of management
and monitoring software that allows the IT adminisrators to oversee the equipment
and monitor the facilities remotely.
Technology giants such as Digital Realty Trus, Inc.
IBM Corporation, Hitachi Ltd.,
Cisco Sysem, Inc., Hewlett-Packard Inc., EMC Corporation, and CyrusOne are some
of the major players in the global data center market. Digital Realty Trus, Inc. is one
of the leading vendors of the data center market. It owns a range of data center
solutions such as Electrical and Cooling sysems, data center cages, and suites. The
Press Release
Global Data Center Market Is
Esimated To Grow At A Cagr
Of 11% During The Forecas
Period 2017 2023
company focuses on building cusomized data centers, cages, and suites based on client
needs. Whereas, IBM Corporation focuses on data center outsourcing, middleware
services, sorage services, and networking services. Hitachi Ltd., Cisco Sysem, Inc.,
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You may also be Interesed in..
Global Data Centre Market Research Report- Forecast to 2023 | MRFR
Case 2:18-cv-00738-KJD-CWH Document 21-13 Filed 04/24/19 Page 3 of 5
Hewlett-Packard Inc. focus on building optimized operation for data center
infrasructures.
Increasing demand for data sorage management and cloud technology are major
Enterprise Metadata Management
Market Research Report Forecas
To 2023
factors driving the growth of the global data center market. However, high initial cos
of invesment may hinder the market growth over the review period. The gaining
popularity of the community cloud technology is expected to create lucrative
opportunities for the market.
The global data center market has been segmented on the basis of
type, density, and
vertical. The type segment is classifed into corporate data centers and web hosing
data centers. The corporate data center segment is expected to hold the major share of
Event Management Software
Market Research Report Global
Forecas To 2022
Indusrial Vision Market
Research Report Global Forecas
2023
the market owing to the increasing demand for data sorage management by large
enterprises.
The North American region holds the larges share of the global market followed by
Europe, and Asia Pacifc regions. The U.S. and Canada are dominating the North
American market due to rising technological enhancements and increasing popularity
community cloud in the region. The region also has a well-esablished infrasructure,
which allows faser implementation of advanced technologies. Additionally, rising
invesment in the data centers in the U.S. is another major factor driving the growth of
data center market in the region.
The global data center market is expected to grow at a CAGR of approximately 11%
during the forecas period 2017-2023.
Global Data Center Market
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Integration Platform As A
Service (I Paa S) Market
Research Report Forecas Till
2023
Global Data Centre Market Research Report- Forecast to 2023 | MRFR
Case 2:18-cv-00738-KJD-CWH Document 21-13 Filed 04/24/19 Page 4 of 5
Key Players:
Some of the prominent players in the global data center market: Digital Realty Trus,
Inc. (U.S), IBM Corporation (U.S), Hitachi Ltd (Japan), Cisco Sysem, Inc. (U.S),
Hewlett-Packard Inc. (U.S), EMC Corporation(U.S), CyrusOne (U.S), Global Switch
(U.K), DuPont Fabros Technology(U.S) and Telehouse (U.K).
Segments:
The global data center market is segmented by type, density, and vertical. Based on the
type, the market is segmented into corporate data centers and web hosing data centers.
Based on the density, the market is segmented into low, medium, high, and extreme.
The vertical segment includes banking & fnancial services, telecom and IT,
government, healthcare, and others.
Regional Analysis:
The global data center market is sudied in Asia Pacifc, North America, Europe, and
Res of the World. North America is esimated to account for the larges share of the
market, whereas Asia Pacifc is projected to grow at the fases rate during the
forecas period. The North American market growth is attributed to rising
invesments in data centers and gaining importance of community cloud sysems.
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EXHIBIT L
Internet Data Centers Market Trends, Market Analysis, and Forecasts by Global Industry Analysts, Inc.,
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Myriad Benefits of Cloud Computing Bring Out the
Significance of Internet Datacenters in an Era Where
Agility, On-Demand Scalability & Low Costs are
Linchpins for Business Success
Published:
October 2018
Report Overview and Infographic
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MCP-6793
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FREE SAMPLE
QUESTIONNAIRE
Internet Data Centers
The global market for Internet Data Centers (IDCs) is projected to reach US$89.5 billion by 2022, driven by the
many benefits of cloud computing including infinite low cost storage against the backdrop of exponential
increase in data generation. With growing emphasis on cost reduction, the benefits of shared infrastructures are
emerging into the spotlight, thereby driving popularity of third party, outsourced IDCs. The continuous evolution
of IT, development of cloud computing technology and increasing role of mobility in enterprise operations are
fueling investments in IDCs. The market is also being positively impacted by the focus on green IT against the
backdrop of companies seeking to attain the benefits of business energy efficiency, sustainability and green
accreditations. Benefits of IDCs include flexibility in servers, storage and networking deployment and
management; on-demand resource scalability; stability and security; greater redundancy than on-premise
counterparts; more efficient disaster recovery and business continuity; easy and cost-effective migration path;
and uninterrupted connectivity to the datacenter, among others. Other major factors also expected to influence
market growth include development of cloud computing technology which represents the foundation for the
evolution of IDCs; explosion of big data, rapid proliferation of Internet of Things (IoT) and the ensuing data
overload, increased datacenter capacity needs and increased investments in IDCs; heterogeneous IT
environments and rising adoption of hybrid clouds; rise of enterprise mobility, increased deployment of bring
your own device (BYOD) programs and the ensuing demand for anytime, anywhere access to corporate data
which can be fulfilled only by an agile always-on IDC hosted on a cloud. The United States represents the
largest market worldwide. Asia-Pacific is poised to record the fastest CAGR of 20.6% over the analysis period,
led by the development of the enterprise sector; growing cloud readiness of Asian economies; increased
reliance of emerging Asian economies on digitalization, the Internet and transformative enterprise technologies;
exploding Internet data traffic, rapid expansion of cloud-based services and increased adoption of Internet of
Things (IoT) in several countries across the region.
Company and Industry News & Stories
Amazon Web Services to Open AWS Africa (Cape Town)
Region, a New Infrastructure Region in South Africa in H1
2020
CyrusOne to Build Additional Data Centres in Frankfurt
and London to Boost its European Presence and Global
Footprint
Silent Partner Group to Build Six Data Centres in Finland
and Norway with an Aim to Decrease Carbon Footprint in
these Countries
Google to Expand Eemshaven Data Center with an
Investment of €500 Million
EdgeCore Internet to Build New Data Center Campus in
Northern Virginias with Acquisition of 36.8 Acres of Land in
Sterling
https://www.strategyr.com/MarketResearch/market-report-infographic-internet-data-centers-forecasts-global-industry-analysts-inc.asp[4/12/2019 11:42:28 AM]
Internet Data Centers Market Trends, Market Analysis, and Forecasts by Global Industry Analysts, Inc.,
Case 2:18-cv-00738-KJD-CWH Document 21-14 Filed 04/24/19 Page 4 of 5
Product Definition & Scope
“Internet Data Centers” (IDCs) are defined as datacenters
connected to and accessed through the Internet. An IDC is
commonly referred to as an outsourced solution and unlike
data centers specifically built for a single large company,
these datacenters are third party data centers hosted on
behalf of companies and are designed to house all datastorage functions of clients and/or house all servers and
related internet equipment. And unlike conventional third
party hosted data center, wherein private connectivity is
provided for companies to access the data center, IDCs
utilize the internet as the only connectivity highway for
clients to access the data center.
Timeline for Analysis
Market Estimates and Forecasts for 2015-2022
Historic Review 2009-2014
Geographic Markets Analyzed
US, Canada, Japan, Europe (France, Germany, Italy, UK,
Interested in our research, you can
contact our 24/7 Research Support
e-Desk at rsd@strategyr.com
Spain, Russia and Rest of Europe), Asia-Pacific (China,
India, and Rest of Asia-Pacific), Latin America (Brazil and
Rest of Latin America), and Rest of World
Major Players
21Vianet Group, Inc.
AT&T, Inc.
Cogent Communications, Inc.
Cyxtera Technologies
DXC Technology Co.
Equinix, Inc.
Google, Inc.
IBM Corporation
How Can You Benefit?
This research project broadly covers analysis of all market
trends, drivers, challenges and other macro market scenarios
you need to know to improve your strategic planning and
remain informed and competitive. The study also provides
reliable ready facts and exclusive statistical data insights in
addition to expert and highly accurate market size forecasts
and projections to help you identify new markets and
opportunities for revenue growth and sustainability. The
extensive reportage of industry, company and product news
and stories together with coverage of all major and niche
https://www.strategyr.com/MarketResearch/market-report-infographic-internet-data-centers-forecasts-global-industry-analysts-inc.asp[4/12/2019 11:42:28 AM]
Internet Data Centers Market Trends, Market Analysis, and Forecasts by Global Industry Analysts, Inc.,
Case 2:18-cv-00738-KJD-CWH Document 21-14 Filed 04/24/19 Page 5 of 5
players provided in the report helps you build a 360 degree
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Infographic Gallery
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4.
http://anthesisgroup.com/latest-research-by-anthesis-americas-data-centers-consuming-massive-andgrowing-amounts-of-electricity/
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Case 2:18-cv-00738-KJD-CWH Document 21-15 Filed 04/24/19 Page 1 of 3
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APR2018
Mega Data Center Market - Segmented by Solution (Storage, Networking,
Servers, Security), End-user, and Region - Growth, Trends, and Forecast
(2019- 2024)
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Mega data center market was worth USD 18.8 2billion in 2017and is projected to grow to USD 24.25bil6on by 2023at a CAGR
of 4.32% during the period 2018 - 2023 The report discusses the various types of solutions provided by mega data centers.
.
While the regions considered in the scope of the report include North America, Europe, and various others. The study also
emphasizes on how growing demand for colocation services is affecting the market.
Server workloads continue to grow with each passing year. which has shown an adverse effect on IT operations. It is estimated
that there is an increase of 35% data growth rate per year, and this has resulted in many organizations double their on-premises
storage over a three-year period, leading to over-builds that drive to wasted capital across infrastructure, power, and staffing
costs. Increasing digitization globally is expected to contribute value to different end-user industries, such as BFSI, IT services,
which is rising need for mega data centers worldwide. Various goverrvnental bodies have been identified to facilitate Industr y
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4.0by deploying lol and cloud services, which is further expected to drive the mega data center market.
Rising Demand for Data Center Colocation to Drive the Market
Colocation acts as an attractive solution as it allows organizations to solve a problem without substantial upfront costs, which is
one of the reasons expected to drive the growth of this market Data center colocation is expected to see significant growth
Request for Custom Report
the forecast period owing to the benefits provided by these data center over conventional ones. Colocation center has been
identified to provide more significant scalabitity, which acts as a perfect solution for small companies that are looking to expand,
I am looking specifically for ...
as weU as finns that are aiming to increase their market share. In addition to that, colocation data centers also offer enhanced
Hexibitity,like data analytics and improved data security making it a very viable alternative for in-house data centers.
Risi ng Demand from BFSI Sector to Augment the Growth
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Banking and finance sector is one of the largest generators of data, and the need for a data center to regulate the cost of
operations is a primary driver. Finance and banking structures use data centers to store the customer records, employee
management, transactioos, electronic banking services, such as remote banking, telebanking, self-inquiry, which need data
centers for their functioning.Data centers are believed to be an infrastructure that is the future of finance. Many institutions have
created private doud system to accommodate massive network, storage, and server capacities to support their retail financial
centers, ATMs, and active online accounts.
Many banks maintain their own data centers, but the trend is found to be changing owing to the fluctuations in the profits for the
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banks. Also, maintaining a data center is a cumbersome process owing to the cost drain on the IT, real estate and operations as
any data center requires proper cooling, security and power facilities.This can act as a challenge for the BFSI industry during the
forecast period.
Growing Demand from Asia-Pacific to Drive the Market
The growing demand for high-density, redundant facilities throughout China is precipitating a shift in the design and
development of the country's data centers. China has 50 internet users per 100 population indicating scope for lot of
development and the connectivity ecosystem is made up of 73colocation da ta centers, 52cloud service providers and 0network
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fabrics. However, power, space and IP transit all cost more in China emphasizing the difficulties in maintaining a data center.
Similarly,in India,9.5% of the GDP is contributed by the digital economy, the digital economy includes USD 25
,518 million fixed
line telephone subscriptions and 1011
.054 million mobile telephone subscriptions, indicating a lot of scope for development of
data centers. Moreover. owing to regulatory and security reasons, a number of organizations in India, especially from the BFSI
sector, are not allowed to host their data in a data center that is out of the country. As a result, the data center providers are
setting up local data centers in India indicat ing the growing mega data center facilities in India.
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Number of Hyperscale Data Centers: in units,
Global, 2015 - 2019
iII
509
448
I
259
2015
Source Cisco
2016
2017
:L,!LIMl.!MMM:M
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2019'"
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Case 2:18-cv-00738-KJD-CWH Document 21-15 Filed 04/24/19 Page 3 of 3
Key Developments in the Market
• December 2017 - Iron Mountain Inc. completed the acquisition of the U.S. operations of Phoenix-based 10 Data Centers
Your Email
LLC. It bought 10 for USO 1.34 billion. The acquisition includes up to an additional USO 60 million based on future
performance
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• October 2017 - QTS Realty Trust, an international provider of data centers, managed to host and cloud services announced
it had commenced development of a mega data centre campus in Ashburn, Virginia
The major players include - Cisco Systems Inc, Dell, Fujitsu, Hewlett-Packard, IBM Corporation, IBM Corporation, Intel
Corporation, Juniper Networks, Inc., and Verizon, among others.
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Reasons to Purchase this Report
I am looking specifically 10< .. .
• Analyzing the growing demand for data center consolidation and its effect on the market
• Analyzing various perspectives of the market with the help of Porter's five forces analysis
• The solution and end-user that are expected to dominate the market
• The region that is expected to witness fastest growth during the forecast period
• Identifying the latest developments, market shares. and strategies employed by the major market players
• 3-month analyst support, along with the Market Estimate sheet (in excel)
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Case 2:18-cv-00738-KJD-CWH Document 21-16 Filed 04/24/19 Page 1 of 13
EXHIBIT N
Case 2:18-cv-00738-KJD-CWH Document 21-16 Filed 04/24/19 Page 2 of 13
VERTIV COLOCATION
DATA CENTER USAGE REPORT
Understanding Buyer Behaviors
for Colocation Services
Case 2:18-cv-00738-KJD-CWH Document 21-16 Filed 04/24/19 Page 3 of 13
TWO STAGE POWER DISTRIBUTION
Section 1: Methodology
Are You Using Colocation?
Vertiv recently conducted an online survey of 226 U.S.
enterprise data center managers regarding their use of
colocation services – current and planned. For this survey,
the term "colocation" includes multi-tenant data centers,
off-premise computing, managed hosting and cloud
hosting data centers.
Respondent industries included financial services, education,
manufacturing, healthcare, government, professional service
and telecommunications. Organizations ranged in size from
more than $1 billion to under $10 million.
35%
50%
15%
The intent of the survey was to gain understanding of:
yyHow colocation services are currently used
yyFuture plans for using services
yyChallenges in adopting colocation services
Yes
No, but we plan to in the next 12 months
No, and we have no intention to use them
yyLikes and dislikes about services
Sixty-five percent of respondents said that their
organizations are using colocation data centers or will use
them within the next 12 months. Among current users, most
are recent adopters, with 64 percent indicating that have
used colos five years or less. These numbers reflect the
experiences of both large and small companies.
How Long Have You Used Colocation?
How Long Have You Used Colocation?
(by size of company)
16%
14%
Less than 1 year
18%
45%
1-5 years
46%
15%
21%
43%
6-10 years
23%
22%
More than 10 years
13%
22%
0%
Less than 1 year
1-5 years
6-10 years
More than 10 years
2
20%
Revs < $1B
Revs > $1B
40%
60%
Case 2:18-cv-00738-KJD-CWH Document 21-16 Filed 04/24/19 Page 4 of 13
Section II: Key Findings
How Will Your Use of Colocation Services
Change in the Next 2 Years?
1. Colocation providers must prepare to meet
new demand.
12%
Fifty-seven percent indicate that they will increase
colocation usage within the next 24 months. New enterprise
data center construction has stalled in the last two years,
with most capacity expansion in the time being achieved
without physical expansion, through colocation or cloud
services. In the next 24 months, these trends will continue,
as new enterprise data construction continues to dwindle.
6%
57%
25%
Increase
Stay the Same
Decrease
Don’t know
How Enterprises Have Expanded Data Center
Capacity In The Last Two Years
Added to datacenter w/o
physical expansion
How Enterprises Will Expand Data Center Capacity
In The Next 2 Years
35%
Cloud outside of colocation
30%
Used colocation
24%
18%
11%
14%
Will not add capacity
11%
Built new data center
32%
Physical expansion of
existing data center
16%
Have not added capacity
Used colocation
Consolidated datacenters
22%
Consolidated datacenters
35%
Add to datacenter w/o
physical expansion
25%
Physical expansion of
existing data center
Cloud outside of colocation
11%
Build new data center
Edge computer at
distributed locations
Other
Edge computer at
distributed locations
5%
6%
5%
0%
10%
20%
30%
40%
0%
0%
20%
40%
3
Case 2:18-cv-00738-KJD-CWH Document 21-16 Filed 04/24/19 Page 5 of 13
TWO STAGE POWER DISTRIBUTION
2. Colocation providers must go up the value chain,
offering diverse services to support growth.
IT capacity is being deployed in many ways, with
deployments becoming increasingly diverse and complex.
Colocation providers must build and scale to support a
variety of deployments.
Most enterprises now use a variety of data centers, with 47
percent using more than one type. Fifty-two percent include
colocation in their mix of data centers, either exclusively or
in combination with other types. Thirty-two percent of
respondents are hybrid data center users, i.e. they use
enterprise data centers and others. Smaller respondents
indicated that they have fewer owned data centers.
What Types of Data Centers Are You
Currently Using?
Most of the smaller respondents are retail colocation service
customers, with less than 250kW in power provisioned.
Approximately two-thirds of all respondents indicated that
they do not yet have most of their IT power in colos.
How colocation data centers are being used is also diverse.
More than 40 percent of respondents indicated that they
are using colocation facilities to back up their primary data
centers. More than one-third indicated that colocation data
centers are their primary data centers for compute and
critical infrastructure and nearly as many are using
colocation for cloud services. Nearly a third of respondents
are using colocation for cloud services, a growing
opportunity for providers to meet customer needs and
differentiate their services. Smaller enterprise companies
reported being more reliant on colocation than large
companies for backup, primary compute and cloud services.
What Types of Data Centers Are You Currently
Using? (by company size)
32%
Colocation
Datacenter
48%
31%
35%
Owned Enterprise
Datacenter
20%
Backup Site
43%
Primary DC for Compute &
Critical Infrastructure
Cloud Services
(IaaS PaaS SaaS)
31%
19%
12%
10%
4%
Other (List)
0%
4
20%
40%
19%
11%
0%
5% 10% 15% 20% 25% 30% 35% 40%
Revs < $1B
Revs > $1B
36%
High Performance Computing
22%
19%
Managed
Hosting
How Are You Currently Using Colocation
Datacenters? (by company size)
Network/Edge Connectivity
35%
Cloud Services
Outside of
Colocation
(IaaS PaaS SaaS)
Hybrid
On-Premise
Off-Premise
Supplemental Capacity
28 %
60%
Case 2:18-cv-00738-KJD-CWH Document 21-16 Filed 04/24/19 Page 6 of 13
3. Pricing models are complex and based on a
multitude of factors, and colocation providers must
be able to demonstrate price transparency.
Colocation users cited 22 different combinations of services
used in pricing colocation contracts. The top four services
included number of racks, managed services, metered
electricity and floor space. Pricing is the biggest complaint
of colocation customers (see #10 below), and providers can
demonstrate higher value if they provide transparency in
how they structure their SLAs around power and
capacity usage and how they monitor and meter usage.
How Are You Charged for Colocation Services?
Number of Racks
38%
Managed Services
29%
Metered Electricity
26 %
Floor Space
26%
Support Staff Labor
18%
Cross-connects
16%
Other
12%
Mechanical PUE
6%
DCIM / Customer
Portal Access
6%
0%
4. Colocation Providers Need To Be Able to Quickly
Support Customer Scalability
The need to improve capacity scalability is the number one
reason customers move to colocation. Other top reasons
include edge connectivity, inability for internal staff alone to 38%
support data center expansion, insufficient budgets for
enterprise data center expansion, and the need to support
new business initiatives with faster time to market.
In the case of colocation companies building new data
centers, scalability can be achieved by providing capacity in
increments, which reduces capital expense. Scalable
deployments can increase utilization rates to ensure that
capacity that might become stranded is available for sale to
customers. Where white space is limited, colocation
providers have increased density to achieve higher capacity,
using technologies such as containment and different types
of power configurations.
5% 10% 15% 20% 25% 30% 35% 40%
What Are The Primary Reasons You Have Moved or
You Will Move to Colocation?
34%
Better Future Scalability
Network/ Edge Connectivity
22%
Other
16%
Staff Can’t Support Expansion
13%
Data center budget Insufficient
13%
Faster Time to Market
12%
New Capabilities from M&A
12%
New Lines of Business Added
11%
Latency/Location
10%
To Support Burst Capacity
9%
To Support HPC
8%
0%
10%
20%
30%
40%
5
Case 2:18-cv-00738-KJD-CWH Document 21-16 Filed 04/24/19 Page 7 of 13
5. Colocation providers must continue
providing support for customers migrating
critical applications.
6. Cost, Security, Internal Staffing Limit
Colocation Adoption
Most enterprises have moved storage management, email,
database services and web servers to colocation. Over the
next 12 months, applications not yet in colocation that will be
moved include storage management, file/print servers,
development, IT service management and human resources.
Which Applications Have You Already
Moved To Colocation?
Store Management
74%
Email
66%
Database Services
59%
Web Servers
54%
Communications/Collaboration
47%
Development
Cost
45%
Security
41%
Customer Hosting
Forty-five percent of respondents cited cost among their
top three challenges in moving more applications to
colocation. Thirty-one cited security concerns and 18
percent cited internal staffing-constraints. Smaller
companies were constrained more by staffing, while
larger companies were constrained more by the
challenges of migrating cloud services and meeting
compliance requirements.
What Are The Top 3 Challenges That Keep You
From Moving More Applications To Colocation?
48%
Networking Tools
The move to colocation services is rife with complexity for
managers outsourcing applications to off-site locations. It
often requires new change management procedures,
redeployment of IT personnel and changes in security
processes and compliance.
31%
Internal Staffing
18%
41%
Compliance
14%
High Performance Computing
36%
Migration or Cloud Systems
13%
Financial/Accounting
35%
No Challenges
12%
Change Management
12%
Incompatible Architectures
11%
Location
10%
0%
20%
40%
60%
80%
Over The Next 24 Months, Which Applications
Will You Move To Colocation That Are Not In
Colocation Today?
Store Management
File/Print Server
0%
10%
10%
10%
20%
30% 40%
Top Challenges To Using More Colocation
Other
9%
Development
8%
IT Service Management
8%
Human Resources
8%
Communications/Colaboration
8%
yy "Change management, migration of cloud systems,
internal staffing."
Networking Tools
8%
yy "Cost, location, siloed processes."
Data Analytics
8%
Sampling of Comments
yy "Cost, Change management, Incompatible
architectures."
Web servers
7%
yy "Security, change management, development of
automated application management."
Intranet
7%
yy "Internal staffing."
0%
6
5%
10%
15%
50%
Case 2:18-cv-00738-KJD-CWH Document 21-16 Filed 04/24/19 Page 8 of 13
7. Colocation providers wanting to pursue larger customers must support more demanding requirements
– and still compete on price.
Price and security are the top selection criteria for potential customers evaluating colocation providers, with the two criteria
nearly of equal importance. Larger companies have more factors of importance than smaller companies, with seven factors
selected in the top five by more than 30% of respondents. For smaller companies, power reliability and capacity scalability round
out their top criteria.
What Are The Top Factors You Use In Selecting Your Colocation Provider?
77%
Price
69%
Security
73%
39%
44%
Power Reliability
38%
Capacity Scalability
49%
30%
Geographic Proximity
39%
29%
Connectivity/Carrier Diversity
36%
30%
Compliance
36%
27%
26%
Facility Management & Maintenance
Access to Managed Hosting or Cloud Services
21%
26%
21%
Latency
33%
15%
Build to Suit
28%
Tier 1 Access
Remote Hands
77%
14%
5%
14%
0%
Customer Portal for Monitoring and Management
8%
0%
10%
14%
20%
30%
40%
50%
60%
70%
80%
90%
7
Case 2:18-cv-00738-KJD-CWH Document 21-16 Filed 04/24/19 Page 9 of 13
8. Colocation has important benefits, but providers must mitigate the culture shock for IT managers
of outsourcing operations.
As most customers of colocation are small companies and relatively new at outsourcing their IT operations, they like the improved
security and reliability offered by colocation providers, and the fact they no longer have to maintain infrastructure. However,
outsourcing IT is a culture shock to them, and many expressed concerns about access, distance to their facility and a sense of
loss of control over their IT operations.
Which Aspect Of Your Colocation Data Center
Or Service Do You Like The Least?
Which Aspect Of Your Colocation Data Center
Or Service Do You Like The Most?
A Sampling Of Comments
A Sampling Of Comments
yy"Being at the mercy of an outside company to respond
promptly to our needs."
yy"Backup, control and maintenance handled for us, Large
amounts of data sound and secure."
yy"Having to drive out there to make physical changes."
yy"Ability to flex capacity with speed and no major
cost outlay."
yy"Lack of operational control."
yy"Recurring costs of seemingly one-time installations such
as cross connects. Also older colo facilities that cannot
bill actual power usage."
yy"The abstraction from specific deployment types,
and the ability to take advantage of the constant
industry improvements in the world of container and
virtual management."
yy"Slow response for smart-hands assistance."
yy"Reliability and centralized access to cloud networks."
yy"1000 miles away makes it harder to manage.
Too far away."
yy"Traveling to the colocation site in Frankfurt."
9. Customer expectations generally are being met.
More than 70 percent indicated that their expectations were currently met by colo usage, with respondents saying top advantages
include disaster recovery improvement; lower, more predictable costs; better security; easier scalability; improved backup and
staffing expertise listed as the top advantages. Larger companies were less satisfied than smaller companies.
Were Your Expectations Met For Using
A Colocation Data Center?
Were Your Expectations Met For Using A
Colocation Data Center? (by company size)
75%
Yes
58%
72%
23%
Somewhat
No
25%
3%
Yes
No
Somewhat
8
36%
2%
6%
0%
10%
20%
Revs < $1B
Revs > $1B
30% 40% 50% 60%
70% 80%
Case 2:18-cv-00738-KJD-CWH Document 21-16 Filed 04/24/19 Page 10 of 13
10. Customers aren’t afraid to change providers.
Most colocation users indicate that they have not changed
providers, but they are not afraid to change. Having used
colocation services longer, larger enterprises are more likely
to have switched providers than smaller companies. Pricing,
cost and inability to meet capacity needs were mentioned as
the key reasons for making changes. Thirty-six listed cost or
pricing as the key driver for changing providers.
Have You Ever Switched Colocation Providers?
22%
11. Colocation providers would benefit by
engaging third-party IT consultants as part of their
business development programs.
While nearly two-thirds of respondents rely on internal
personnel to make recommendations for moving to
colocation, nearly one-third use IT consultants when
researching potential partners. Within the company itself, IT
Managers/Directors and CIOs are primarily involved in the
selection and final decision processes. With C-level
executives making decisions, colos must focus on
making the business case first while providing technical
specs second.
Who Do You Rely On For Evaluating Colocation Or
Other Off-Premise Solutions?
78%
Internal Personnel
No
Yes
IT Consultant
Have You Ever Switched Colocation Providers
(by company size)
20%
Peers
19%
Business Consultant
8%
7%
Commercial Real Estate
79%
67%
No
31%
Engineering Firm
21%
33%
Yes
0%
66%
3%
Other
2%
0%
20%
40%
60%
80%
40% 60% 80% 100%
Revs < $1B
Revs > $1B
Why They Changed Providers
Sampling of Comments
yy"Issues with support and pricing. Being charged a lot for
small requests."
yy"Pricing model and capacity availability."
yy"SLA not met."
yy"Better price, newer data center."
yy"Merger of colocation provider."
9
Case 2:18-cv-00738-KJD-CWH Document 21-16 Filed 04/24/19 Page 11 of 13
Section III: Conclusion
The Vertiv survey indicates general satisfaction with current
colocation services among enterprise end user customers,
and validates the trend reported by other sources that the
use of colocation will increase in the coming years.
Colocation providers enjoy a high
retention rate – three-quarters of users have not changed
providers. That is due in part to customer expectations
having been met.
However, the early stages of colocation deployment are now
over for most companies, and they are looking at future IT
application deployments in colocation and the cloud that are
more diverse, complex and business critical. Colocation
providers will have to differentiate themselves with new
services, especially around the cloud, will have to offer a
greater number of services to capture larger customers, and
will have to demonstrate price transparency to retain
customers. Price will likely remain among the top criteria for
selecting colocation providers.
This complexity will also likely mean that smaller companies
will continue relying on outside IT consultants in selecting
colocation providers, and providers would be well served
to identify these consultants and nurture relationships
with them.
Both colocation providers and their customers continually
seek ways to reduce operating costs. While reliability is
critical to the colocation business and important to
customers, it is also a feature common to the offerings of
most colocation providers. Customers are more concerned
with whether a given provider can support capacity
scalability and meet security requirements as IT operations
grow in complexity.
10
Companies moving to colocation need a higher degree of
hand-holding to smooth the process of migrating
operations and applications to outsourced data centers.
Well-defined SLAs and transparent pricing can help alleviate
concerns. Customers expressed satisfaction with providers
who offered exemplary support services. Providing highly
personalized services can separate smaller colocation
providers from the very large cloud hosting companies.
Customizing SLAs and adding cloud services are ways to
attract and retain new business.
Vertiv believes that innovations in power, cooling and data
center management infrastructure can play an important
role in keeping colocation provider costs in line, enhancing
revenue and profitability and ensuring continued protection
of increasingly complex IT applications. Importantly, new
infrastructure technologies that reduce operational costs,
eliminate stranded power and cooling capacity, reduce the
maintenance burden and provide greater insight and control
of data center conditions can help colocation providers
operate at peak performance. In turn, they can improve
customer SLAs and enhance profitability and be more
attractive to potential new customers.
Case 2:18-cv-00738-KJD-CWH Document 21-16 Filed 04/24/19 Page 12 of 13
11
Case 2:18-cv-00738-KJD-CWH Document 21-16 Filed 04/24/19 Page 13 of 13
VertivCo.com | Vertiv Headquarters, 1050 Dearborn Drive, Columbus, OH, 43085, USA
© 2017 Vertiv Co. All rights reserved. Vertiv and the Vertiv logo are trademarks or registered trademarks of Vertiv Co. All other names and logos referred to are trade names, trademarks or registered trademarks of their respective owners. While every precaution
has been taken to ensure accuracy and completeness herein, Vertiv Co. assumes no responsibility, and disclaims all liability, for damages resulting from use of this information or for any errors or omissions. Specifications are subject to change without notice.
SL-24695 (R08-17)
Case 2:18-cv-00738-KJD-CWH Document 21-17 Filed 04/24/19 Page 1 of 34
EXHIBIT O
FILED: 1/14/2019 1:19 PM
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David Trantham
Denton County District Clerk
By: Shelbi Malatin, Deputy
19-0342-442
CAUSE NO. ______________
CYRUSONE LLC and
CYRUSONE, INC.,
§
§
§
§
§
§
§
§
§
§
Plaintiffs,
v.
STUART LEVINSKY,
Defendant.
IN THE DISTRICT COURT
DENTON COUNTY, TEXAS
____ JUDICIAL DISTRICT
PLAINTIFFS’ ORIGINAL VERIFIED PETITION AND APPLICATION
FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
Plaintiffs CyrusOne, Inc. and CyrusOne LLC (collectively, “CyrusOne”) file the following
Original Verified Petition and Application for Temporary Restraining Order and Injunctive Relief
against Stuart Levinsky, and for causes of action would respectfully show the Court as follows:
1.
DISCOVERY CONTROL PLAN
1.1.
Plaintiffs intend to conduct discovery under Level 2 pursuant to Texas Rule of Civil
Procedure 190.3, subject to any Court order expediting discovery in this matter.
2.
STATEMENT OF RELIEF SOUGHT
2.1.
Plaintiffs seek monetary relief over $1,000,000.00. Tex. R. Civ. P. 47(c)(5). Such
damages are within the jurisdictional limits of this Court.
3.
PARTIES AND SERVICE
3.1.
Plaintiff CyrusOne, Inc. is a Maryland corporation that is authorized to do business
and has its principal place of business in Texas.
3.2.
Plaintiff CyrusOne LLC is a Delaware limited liability company that is authorized
to do business and has its principal place of business in Texas.
PLAINTIFFS’ ORIGINAL VERIFIED PETITION AND APPLICATION
FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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3.3.
Defendant Stuart Levinsky (“Levinsky”) is an individual and former employee of
CyrusOne. Levinsky is a resident of Seattle, Washington. His home address is 3720 60th Ave. SW,
Seattle, WA 98116. Levinsky may be served personally at his home address, or wherever else he
may be found.
4.
JURISDICTION AND VENUE
4.1.
Jurisdiction is proper in this Court pursuant to the relevant portions of the Texas
Constitution, the Texas Government Code, other applicable law, and the Employment Agreements
(defined below) in which the parties submitted to the exclusive jurisdiction of the state or federal
courts located in Denton County, Texas. This Court has jurisdiction over the subject matter of the
claims in this lawsuit and the amount in controversy is in excess of the minimum jurisdictional
limits of the Court.
4.2.
Venue is proper in Denton County, Texas pursuant to the forum selection clauses
contained in the Employment Agreements (defined below).
5.
FACTUAL BACKGROUND
5.1.
This dispute arises out of former CyrusOne employee Stuart Levinsky’s resignation
from CyrusOne and his decision to breach the legal duties he owed to CyrusOne by joining a direct
competitor, Switch, Inc. (“Switch”).
5.2.
CyrusOne is a global data operator, with a portfolio network of more than 45 data
centers in key North American, European, South American and Asian markets designed to meet
the needs of many of the world’s leading enterprise, technology and cloud computing companies.
CyrusOne provides high-quality colocation with robust connectivity and the flexibility businesses
need to scale for future growth. To this end, data center and connectivity products and services are
intimately linked in that customers in the industry both (a) lease data center capacity and also
PLAINTIFFS’ ORIGINAL VERIFIED PETITION AND APPLICATION
FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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(b) purchase connectivity services. Customers also turn to CyrusOne to gain flexible access to
additional data-center capacity for their private cloud requirements.
5.3.
Levinsky was hired by CyrusOne on or about September 30, 2012. Before his
resignation on or about November 9, 2018, he served as Vice President of Cloud and Global
Accounts for CyrusOne. During his tenure at CyrusOne, he served as the general manager of
CyrusOne’s Phoenix campus and helped develop that into one of the most successful campuses in
the Company’s portfolio. He was involved in selling to many of the largest companies in the
world. Approximately 90% of the customers in the Phoenix location are headquartered outside of
Arizona. Levinsky was successful attracting these customers to the Phoenix campus and was
actively competing against many competitors, including Switch. Levinsky deemed Switch to be
one of CyrusOne’s strongest competitors. Levinsky was one of the most successful sales executive
at CyrusOne and was one the most highly compensated employees in the Company. He was chosen
in 2017 to lead the company’s new strategic cloud initiative based in Seattle, Washington. Given
his executive sales leadership position, Levinsky was intimately involved in all aspects of
CyrusOne’s strategy, customer relationships, pricing information, build costs, and other
competitively sensitive information. Levinsky was also involved in CyrusOne’s design and
construction techniques and supply chain management, all of which provide competitive
advantages that CyrusOne enjoys against its competition across the United States.
5.4.
CyrusOne requires certain employees to sign non-disclosure, non-solicitation, and
non-competition agreements as part of the Company’s efforts to protect its confidential
information and goodwill, and to maintain its competitive position.
5.5.
On or about March 25, 2013, Levinsky entered into a Non-Disclosure and Non-
Competition Agreement with CyrusOne (“2013 Agreement”). A true and correct copy of that
PLAINTIFFS’ ORIGINAL VERIFIED PETITION AND APPLICATION
FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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Agreement is attached to this Petition as Exhibit A. In that Agreement, Levinsky acknowledged
that, in the course of his employment, he would be entrusted with, have access to, and obtain
goodwill belonging to the Company and intimate, detailed, and comprehensive knowledge of
confidential, proprietary, and/or trade secret information to which he did not previously have or
have access to:
Employee acknowledges that in the course of employment with the Company,
Employee will be entrusted with, have access to and obtain goodwill belonging to
the Company and intimate, detailed, and comprehensive knowledge of confidential,
proprietary, and/or trade secret information (“Information”) that Employee did not
have or have access to prior to signing this Agreement, including some or all of the
following: (1) information concerning the Company’s products and services; (2)
information concerning the Company’s customers, suppliers and employees; (3)
information concerning the Company’s advertising and marketing plans; (4)
information concerning the Company’s strategies, plans, goals, projections, and
objectives; (5) information concerning the Company’s research and development
activities and initiatives; (6) information concerning the strengths and weaknesses
of the Company’s products or services; (7) information concerning the costs, profit
margins, and pricing associated with the Company’s products or services; (8)
information concerning the Company’s sales strategies, including the manner in
which it seeks to position its products and services in the market; (9) financial
information concerning the Company’s business, including budgets and margin
information, and (10) other information considered confidential by the Company.
Employee may also be entrusted with and have access to Third Party Information.
The term “Third Party Information” means confidential or trade secret information
that the Company may receive from third parties or information which is subject to
a duty on the Company’s part to maintain the confidentiality of such Third Party
Information and to use it only for limited purposes.
2013 Agreement, ¶ 2.
5.6.
Levinsky agreed that that information was competitively valuable, to keep that
information confidential, to not use or disclose that information to third parties (except to perform
his job for CyrusOne), and to return to CyrusOne all company property upon the termination of
his employment with CyrusOne:
3.
Employee agrees that the Information and goodwill are highly valuable,
provide a competitive advantage to the Company and allow Employee a unique
competitive opportunity and advantage in developing business relationships with
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FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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the Company’s current or prospective customers in the industry. Employee further
agrees that, given the markets in which the Company competes, confidentiality of
the Information is necessary without regard to any geographic limitation.
4.
Both during and after Employee’s employment with the Company,
Employee agrees to retain the Information in absolute confidence and not to use the
Information, or permit access to or disclose the Information to any person or
organization without the Company’s express written consent, except as required for
Employee to perform Employee’s job with the Company. Employee further agrees
not to use the goodwill for the benefit of any person or entity other than the
Company. Employee hereby agrees that upon cessation of Employee’s
employment, for whatever reason and whether voluntary or involuntary, or upon
the request of the Company at any time, Employee will immediately surrender to
the Company all of the property and other things of value in Employee’s possession
or in the possession of any person or entity under Employee’s control that are the
property of the Company, including without any limitation all personal notes,
drawings, manuals, documents, photographs, or the like, including copies and
derivatives thereof, relating directly or indirectly to any Information or New
Developments, or relating directly or indirectly to the business of the Company.
2013 Agreement, ¶¶ 3-4.
5.7.
In order to ensure enforcement of the confidentiality obligations set out above,
prevent unfair competition, and protect CyrusOne’s legitimate business interest, Levinsky also
agreed to certain restrictive covenants:
5.
Employee recognizes the need of the Company to prevent unfair
competition and to protect the Company’s legitimate business interests. Therefore,
ancillary to the otherwise enforceable agreements set forth in this Agreement, and
to avoid the actual or threatened misappropriation of the Information or goodwill,
Employee agrees to the restrictive covenants set forth in this Agreement.
Accordingly, Employee agrees that, during Employee’s employment and for a
period of one year following Employee’s termination or separation (for any reason),
Employee will not accept employment or engage in any business activity (whether
as a principal, partner, joint venturer, agent, employee, salesperson, consultant,
independent contractor, director or officer) with a “Competitor” of the Company
where such employment or activity would involve Employee:
(i) providing, selling or attempting to sell, or assisting in the sale or
attempted sale of, any services or products competitive with or similar to
those services or products with which Employee had any involvement,
and/or regarding which Employee had any Information, during Employee’s
employment with the Company (including any products or services being
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FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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researched or developed by the Company during Employee’s employment
with the Company); or
(ii) providing or performing services that are similar to any services that
Employee provided to or performed for the Company during Employee’s
employment with the Company.
For purposes of this provision, a “Competitor” is any business or entity that, at any
time during the one-year period following Employee’s separation from
employment, provides or seeks to provide, any products or services similar or
related to any products sold or any services provided by the Company.
“Competitor” includes, without limitation, any company or business that provides
data colocation and related services to businesses or entities.
The restrictions set forth in this paragraph will be limited to the geographic areas
(i) where Employee performed services for the Company, (ii) where Employee
solicited or served the Company’s customers or clients, or (iii) otherwise impacted
or influenced by Employee’s provision of services to the Company.
6.
During Employee’s employment and for a period of one year following
Employee’s termination or separation from the Company for any reason, Employee
will not, for the purpose of doing competitive business, directly or indirectly,
through any person or entity, communicate with (i) any of the Company’s
customers known to Employee during his employment with the Company and from
which the Company generated revenue during the one-year period preceding
Employee’s termination or separation; or (ii) any prospective customers known to
Employee during the one-year period prior to Employee’s termination or
separation, for the purpose or intention of attempting to sell any Competitor’s
products or services or attempting to divert business of said customer or prospective
customer from the Company to a Competitor.
2013 Agreement, ¶¶ 5-6.
5.8.
Because of the importance of the obligations set out in the Agreement, Levinsky
further agreed that any breach or threatened breach of the Agreement could result in material
damage and immediate and irreparable harm to CyrusOne:
Employee further agrees that any breach or threatened breach of this Agreement
would result in material damage and immediate and irreparable harm to the
Company. Employee further agrees that any breach of the covenant not to compete
described herein would result in the inevitable disclosure of Company’s
confidential, proprietary and trade secret Information. Employee therefore agrees
that the Company, in addition to any other rights and remedies available to it, shall
be entitled to obtain an immediate injunction, whether temporary, preliminary, or
PLAINTIFFS’ ORIGINAL VERIFIED PETITION AND APPLICATION
FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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permanent, in the event of any such breach or threatened breach by Employee.
Employee acknowledges that the prohibitions and obligations contained in this
Agreement are reasonable and do not prevent Employee’s ability to use Employee’s
general abilities and skills to obtain gainful employment. Therefore, Employee
agrees that Employee will not sustain monetary damages in the event that Company
obtains a temporary, preliminary or permanent injunction to enforce this
Agreement.
2013 Agreement, ¶ 14.
5.9.
The Agreement also contemplated that Levinsky may enter into other agreements
with CyrusOne that contain restrictive covenants, and Levinsky agreed that, if the restrictions in
other agreements were broader in scope, the broader agreement would control:
If any of the provisions in this Agreement conflict with similar provisions in any
other document or agreement related to Employee’s employment with Company,
the provisions of this Agreement will apply; provided, however, if the restrictions
set forth in the other document or agreement at issue are broader in scope than those
in this Agreement and are enforceable under applicable law, those restrictions will
apply. . . .
2013 Agreement, ¶ 17.
5.10. On or about March 9, 2017, Levinsky entered into a Non-Disclosure and NonCompetition Agreement in connection with his acceptance of a Time-Based Restricted Stock Unit
Award Under the Provisions of the CyrusOne Restated 2012 Long Term Incentive Plan, under
which Levinsky was awarded certain Restricted Stock Units of the common stock of CyrusOne,
Inc. A true and correct copy of that award and the accompanying Non-Disclosure and NonCompetition Agreement to which he agreed is attached to this Petition as Exhibit B. The restrictive
covenants set out in the Non-Disclosure and Non-Competition Agreement attached to the 2017
Restricted Stock Unit Award are substantially similar to the restrictive covenant set out in the 2013
Agreement. (The 2017 Non-Disclosure and Non-Competition Agreement and the 2013 Agreement
will collectively be referred to as the “Employment Agreements.”)
PLAINTIFFS’ ORIGINAL VERIFIED PETITION AND APPLICATION
FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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5.11. While employed by CyrusOne, Levinsky was entrusted with and had access to
CyrusOne’s confidential information as described and defined by the Employment Agreements.
Indeed, Levinsky was a key member of CyrusOne’s management team and responsible for
relationships with customers that counted among its largest and most important accounts. All of
the confidential information as described and defined by the Employment Agreements was of such
a confidential and sensitive nature that disclosing it to a competitor would put CyrusOne at a
competitive disadvantage.
5.12. Levinsky resigned his employment with CyrusOne on November 9, 2018. He did
not return his company issued laptop, despite statements to CyrusOne that he would, and he may
still maintain access to CyrusOne files and data. Upon information and belief, Levinsky has
improperly retained and used CyrusOne’s confidential and trade secret information. In fact,
Levinsky’s CyrusOne laptop connected to the public internet as recently as January 3, 2019.
5.13. The wrongful retention and use of Levinsky’s CyrusOne laptop on January 3, 2019,
is especially suspicious because, Levinsky recently disclosed that, as of January 2, 2019, he
commenced employment with one of CyrusOne’s direct competitors—Switch.
5.14. Levinsky had not previously stated that, after his departure from CyrusOne, he
intended to join a direct competitor. Nevertheless, on January 11, 2019, Levinsky informed
CyrusOne that, effective January 2, 2019, he had commenced employment with Switch as an
officer in its Connectivity Division.
5.15. Switch has acknowledged in public filings with the Securities and Exchange
Commission that it competes with CyrusOne. Specifically, in a recent 10-K report, Switch stated
as follows: “We offer a broad range of data center services and, as a result, we may compete with
a wide range of data center service providers for some or all of the services we offer. We face
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competition from numerous developers, owners and operators in the data center industry, including
. . . CyrusOne, Inc.”
5.16. Levinsky’s work for Switch in its Connectivity Division entails work for a
Competitor (as that term is defined in Levinsky’s restrictive covenants) (a) providing, selling or
attempting to sell, or assisting in the sale or attempted sale of, services and products competitive
with or similar to those services or products with which Levinsky had involvement, or regarding
which Levinsky had CyrusOne protected information, during his employment with CyrusOne, and
(b) providing or performing services that are similar to services that Levinsky provided to or
performed for the CyrusOne during his employment with the CyrusOne. Indeed, over the course
of his career at CyrusOne, Levinsky sold connectivity services alongside leasing data center
capacity and fully understands that both of these products are intimately linked. As explained
above, data center and connectivity products and services are intimately linked in that customers
both (a) lease data center capacity and also (b) purchase connectivity services. Levinsky fully
understands how these products are sold jointly together, and Switch too recognizes that its
connectivity offerings are important in terms of attracting customers.
5.17. Moreover, Levinsky’s work for Switch in its Connectivity Division entails work
for a Competitor in areas (a) where Levinsky performed services for the CyrusOne, (b) where
Levinsky solicited or served CyrusOne’s customers or clients, or (c) otherwise impacted or
influenced by Levinsky’s provision of services to the CyrusOne.
5.18. Levinsky’s role at CyrusOne was to sell data center services, telecommunication
services, and other types of services offered by CyrusOne, to its customers. Levinsky repeatedly
acknowledged during his employment with CyrusOne that Switch was a direct and vigorous
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FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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competitor, and that CyrusOne and Switch directly competed against one another for specific
customers.
5.19. Indeed, while CyrusOne has data centers in various specific locations in, for
example the United States, those data centers provide connectivity and cloud solutions (i.e.,
products and services) for CyrusOne customers who desire to obtain CyrusOne’s assistance to
serve the customers’ own networking needs over broad geographical areas, as most customers
make data center location decisions that are not solely dependent upon geographic location for a
variety of reasons. Switch’s customers are also broadly located in geographical areas even where
Switch does not have a physical location.
5.20. Levinsky’s work for Switch thus violates his obligations under the Employment
Agreements.
6.
COUNT 1 – BREACH OF CONTRACT
6.1.
CyrusOne incorporates by reference and re-alleges each allegation contained in the
above-numbered paragraphs.
6.2.
CyrusOne and Levinsky are parties to valid and enforceable contracts entered into
during Levinsky’s employment.
6.3.
CyrusOne performed its obligations under the Employment Agreements and all
conditions precedent have occurred or, in the alternative, have been waived.
6.4.
Despite agreeing to the contractual obligations and prohibitions described above,
Levinsky has violated the terms of the Employment Agreements.
6.5.
Levinsky breached the Employment Agreements by (i) retaining confidential and
proprietary information without CyrusOne’s written authorization; and (ii) going to work for
Switch immediately following his resignation from CyrusOne.
PLAINTIFFS’ ORIGINAL VERIFIED PETITION AND APPLICATION
FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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6.6.
CyrusOne has been and continues to be damaged by Levinsky’s actions and
conduct in an undetermined amount of damages to its business including, but not limited to, lost
profits, loss of clients, and loss of business opportunities.
6.7.
As a direct and proximate result of Levinsky’s breach of the Employment
Agreements, CyrusOne has suffered and will continue to suffer, immediate and irreparable injury,
the exact extent, nature, and amount of which is currently impossible to ascertain.
7.
REQUEST FOR REFORMATION
7.1.
To the extent that the Court should find that any term or provision, or portion of a
term or provision, of the Employment Agreements is unenforceable as a matter of law or public
policy, CyrusOne requests that the Court modify any such term or provision, or portion of a term
or provision, as may be necessary.
8.
COUNT 2 – CONVERSION
8.1.
CyrusOne incorporates by reference and re-alleges each allegation contained in the
above-numbered paragraphs.
8.2.
Levinsky has wrongfully exercised dominion and control over CyrusOne’s
property for his own benefit, use, and enjoyment.
8.3.
As a direct and proximate result of Levinsky’s wrongful conduct, CyrusOne has
suffered and will continue to suffer, immediate and irreparable injury, the exact extent, nature, and
amount of which is currently impossible to ascertain.
9.
APPLICATION FOR TEMPORARY RESTRAINING ORDER
AND TEMPORARY INJUNCTION
9.1.
CyrusOne incorporates by reference and re-alleges each allegation contained in the
above-numbered Paragraphs.
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FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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9.2.
CyrusOne further moves the Court for the entry of a Temporary Restraining Order
as well as a Temporary Injunction to maintain the status quo and (i) to prevent Levinsky or anyone
else acting in concert or participation with him from directly or indirectly soliciting any customer
of CyrusOne during the one-year time frame provided by the Employment Agreements; (ii) to
prevent Levinsky or anyone acting in concert or active participation with him from using
CyrusOne’s confidential and proprietary information including, but not limited to information
retained by Levinsky following the termination of his employment; and (iii) to prevent Levinsky
or anyone acting in concert or active participation with him from further breaching the
Employment Agreements or facilitating any breach of the Employment Agreements by Levinsky.
9.3.
CyrusOne has shown a probability of recovery on the merits of its claims based on
Levinsky’s ongoing breach of the Employment Agreements and conversion of CyrusOne’s
property. Specifically as to the breach of the Employment Agreements, they contain promises that
Levinsky would obtain and receive CyrusOne’s goodwill and confidential, proprietary, and/or
trade secret information; Levinsky in fact received such consideration; in exchange, Levinsky
promised to keep that information confidential and not use that information for any person or entity
other than CyrusOne and to return such information upon the termination of his employment; and
to enforce that promise, Levinsky agreed to the restrictive covenants described above. Further the
restrictions in the Agreements are reasonably calculated to protect CyrusOne’s legitimate business
interests and are reasonable in time, geography and scope of activity restrained. Alternatively, to
the extent they are not reasonable in time, geography and scope, CyrusOne only seeks to enforce
them to the extent they are reasonable.
9.4.
CyrusOne faces probable imminent, ongoing, and irreparable injury for which
there is no adequate remedy at law. The harm that will be caused to CyrusOne by Levinsky’s
PLAINTIFFS’ ORIGINAL VERIFIED PETITION AND APPLICATION
FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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breach of his non-solicitation, non-disclosure, and non-compete obligations is imminent because
Switch is a competitor of CyrusOne. Should injunctive relief not be entered, in all probability,
Levinsky will interfere with CyrusOne’s business by breaching his legal obligations to CyrusOne.
Such interference will permanently impair and irreparably harm CyrusOne’s ability to compete in
the marketplace, a harm that is difficult to measure and which cannot be readily repaired.
Moreover, Levinsky is an individual and would likely be unable to satisfy any money judgment
entered against him. Accordingly, absent injunctive relief by this Court, CyrusOne will suffer
irreparable injury for which there is no adequate remedy at law.
9.5.
Finally, Levinsky expressly acknowledged and agreed in his Employment
Agreements that CyrusOne would suffer imminent and irreparable harm if he violated the noncompetition and non-solicitation provisions, and he agreed that CyrusOne would be entitled to
injunctive relief if he violated such provisions. Moreover, CyrusOne is entitled to temporary and
permanent injunctive relief pursuant to Tex. Bus. & Comm. Code, §§ 15.50-15.52, and has
satisfied the standards for injunctive relief contained therein
9.6.
CyrusOne is ready and willing to post a bond as required by law. For the reasons
stated herein, CyrusOne respectfully requests that the Court enter a Temporary Restraining Order
(and subsequently, a Temporary Injunction) enjoining Levinsky, his agents, employees,
representatives, attorneys, and those in active concert or participation with him who receive actual
notice of the Temporary Order:
(a) from providing, selling or attempting to sell, or assisting in the sale or
attempted sale of, any services or products competitive with or similar to
those services or products with which Levinsky had any involvement,
and/or regarding which Levinsky had any CyrusOne Confidential
Information, during his employment with CyrusOne (including any
products or services being researched or developed by CyrusOne during
Levinsky’s employment with CyrusOne) anywhere within the United
States;
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FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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(b) from providing or performing services anywhere within the United
States that are similar to any services that Levinsky provided to or
performed for the CyrusOne during his employment with CyrusOne;
(c) from communicating with (i) any of the CyrusOne’s customers known
to Levinsky during his employment with CyrusOne and from which
CyrusOne generated revenue during the one-year period preceding
Levinsky’s termination or separation for the purpose of doing competitive
business, directly or indirectly, through any person or entity, or (ii) any
prospective customers known to Levinsky during the one-year period prior
to his termination or separation, for the purpose or intention of attempting
to sell any of Switch’s products or services or attempting to divert business
of said customer or prospective customer from CyrusOne to Switch;
(d) from disclosing any confidential or proprietary information regarding
CyrusOne, its customers, and its working relationships with its customers
to any third party, including to Switch; and
(e) to return to CyrusOne, through delivery to CyrusOne’s counsel of
record, any CyrusOne property in Levinsky’s possession, custody, or
control and all documents, files, data, and electronic transmissions or copies
thereof, constituting, containing, embodying, or based upon any of
CyrusOne’s Confidential Information immediately upon notice of the entry
of this Order.
9.7.
Severe harm will be sustained by CyrusOne if Levinsky is not restrained as
requested.
9.8.
Levinsky is not likely to be prejudiced by such an injunction. Indeed, Levinsky
expressly agreed on multiple occasions that violation of the non-disclosure, non-solicitation, and
non-competition provisions of the Employment Agreements would entitle CyrusOne to an
injunction as a matter of right. Thus, the balancing of hardships favors the issuance of the requested
temporary restraining order. Further, a temporary injunction will not impose an undue hardship on
Levinsky because he can continue to seek a livelihood by methods that do not violate the terms of
the Employment Agreements.
PLAINTIFFS’ ORIGINAL VERIFIED PETITION AND APPLICATION
FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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9.9.
Finally, issuing the requested temporary restraining order will maintain the last
legal status quo until such time as this Court can take evidence to determine whether to issue a
temporary injunction to protect CyrusOne’s rights.
9.10. For the reasons stated above, CyrusOne moves the Court for the entry of a
Temporary Restraining Order against Levinsky and his agents, employees, representatives,
attorneys, and those in active concert or participation within them who receive actual notice of
such Temporary Restraining Order to maintain the status quo.
9.11. CyrusOne is entitled to injunctive relief as it has satisfied the standards necessary
for such relief.
9.12. In addition to the above-requested relief, CyrusOne requests the Court set a hearing
for temporary injunction within fourteen days of the entry of a temporary restraining order in this
case or as soon as possible and that Levinsky be commanded to appear and show cause why a
temporary injunction should not be issued.
10.
ATTORNEY’S FEES
10.1. Pursuant to Chapter 38 of the Texas Civil Practice and Remedies Code, the
Agreement, and any other applicable statutes, CyrusOne is entitled to and hereby seeks its
attorney’s fees in prosecuting this action.
11.
CONDITIONS PRECEDENT
11.1. For each cause of action alleged in this Petition, all conditions precedent have been
satisfied.
PLAINTIFFS’ ORIGINAL VERIFIED PETITION AND APPLICATION
FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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12.
REQUEST FOR DISCLOSURE
12.1. Pursuant to Texas Rule of Civil Procedure 194, CyrusOne requests that Levinsky
disclose, within fifty (50) days of the service of this request, or at the time required by the Court,
the information or material described in Rule 194.2.
13.
PRAYER
WHEREFORE, Plaintiff CyrusOne requests that Defendant Stuart Levinsky be cited to
appear and to answer, and that the Court award CyrusOne:
a.
Injunctive relief as requested above, first in the manner of a temporary restraining
order, then as a preliminary injunction, and finally, to the extent necessary and
appropriate, as a permanent injunction;
b.
Judgment against Levinsky for compensatory damages to be proven in this
litigation, including lost profits, lost sales, loss of customers, and loss of business
opportunities;
c.
Judgment against Levinsky for a sum to be requested at trial representing
exemplary and/or punitive damages for his malicious and intentional and/or
wrongful conduct;
d.
Costs and attorneys’ fees;
e.
Prejudgment and post-judgment interest at the highest rate permitted by law; and
f.
Such other and further relief to which the law and equity may deem CyrusOne
entitled.
PLAINTIFFS’ ORIGINAL VERIFIED PETITION AND APPLICATION
FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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Respectfully submitted,
JACKSON WALKER L.L.P.
By: /s/ W. Ross Forbes, Jr.
W. Ross Forbes, Jr.
State Bar No. 00796564
Scott M. McElhaney
State Bar No. 00784555
Eric D. Wong
State Bar No. 24102659
2323 Ross Avenue, Suite 600
Dallas, Texas 75201
Telephone: (214) 953-6000
Fax: (214) 661-5822
Email: rforbes@jw.com
Email: smcelhaney@jw.com
Email: ewong@jw.com
and
Curtis Loveless
State Bar No. 12607000
Darcy E. Loveless
State Bar No. 24013062
LOVELESS & LOVELESS
ATTORNEYS AT LAW, LP
218 N. Elm St.
Denton, Texas 76201
Telephone: (940) 387-3776
Fax: (940) 898-0196
Email: curtis@cmloveless.com
Email: darcy@cmloveless.com
ATTORNEYS FOR PLAINTIFFS
LOCAL RULE 2.1
ATTORNEY’S CERTIFICATE FOR EX PARTE RELIEF
I certify that to the best of my knowledge, the party against whom relief is sought ex parte
is not represented by counsel in the matter made the basis of the relief sought.
/s/ W. Ross Forbes, Jr.
W. Ross Forbes, Jr.
PLAINTIFFS’ ORIGINAL VERIFIED PETITION AND APPLICATION
FOR TEMPORARY RESTRAINING ORDER AND INJUNCTIVE RELIEF
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Exhibit A
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Exhibit B
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March 09, 2017
TIME-BASED RESTRICTED STOCK UNIT AWARD
UNDER THE PROVISIONS OF THE
CYRUSONE RESTATED 2012 LONG TERM INCENTIVE PLAN
Name of Employee:
Award Date:
Number of Restricted Stock Units:
LEVINSKY, STUART
February 13, 2017
810
Pursuant to the provisions of the CyrusOne Restated 2012 Long Term Incentive Plan (as in effect
from time to time (the “Plan”)), the Board of Directors of CyrusOne Inc. hereby grants to the employee
named above (“you” or the “Employee”) on the date noted above (the “Award Date”) an award (the
“Award”) of time-based Restricted Stock Units (“RSUs”) with respect to the common stock of CyrusOne
Inc., on and subject to the terms of the Plan and your agreement to the terms, conditions and restrictions
contained herein and subject to the vesting criteria contained herein. Capitalized terms used in this timebased Restricted Stock Unit award agreement (this “Agreement”) that are not defined in this Agreement
have the meanings as used or defined in the Plan.
1.
Vesting. Except as otherwise provided in any Employment Agreement (as defined in
Section 14 hereof) or determined by the Committee in its sole discretion or provided in Section 2, 3, 4 or 5
hereof, the RSUs shall vest in three approximately equal installments on each anniversary of the Award
Date (each, a “Vesting Date”) provided that you are continuously employed by the Company through each
such Vesting Date.
2.
Vesting Upon Death. Except as otherwise provided in any Employment Agreement, in the
event of your death while an Employee, then, effective as of the date of your death, you will become
vested in the number of RSUs (rounded up to the nearest whole RSU) that bears the same ratio to the total
number of RSUs granted pursuant to this Award Agreement as the number of days from the Award Date
through the date of your death bears to 1,096. Any RSUs that are not vested pursuant to the calculation
described in the preceding sentence shall be forfeited to CyrusOne as of your date of death in accordance
with the terms of Section 6 hereof.
Vesting Upon Disability. If pursuant to the applicable disability provision of any
3.
Employment Agreement, you become disabled and as a result thereof cease to be an Employee or, if no
such provision exists or you are not party to an Employment Agreement, you become disabled to such
extent that you are unable to perform the usual duties of your job for a period of 12 consecutive weeks or
more and, as the result thereof, the Committee approves the termination of your employment within the 12month period following the first day of such 12 consecutive week period, then, effective as of the date of
your termination of employment, you will become vested in the number of RSUs (rounded up to the
nearest whole RSU) that bears the same ratio to the total number of RSUs granted pursuant to this Award
Agreement as the number of days from the Award Date through the date of your termination of
employment bears to 1,096. Any RSUs that are not vested after the calculation described in the preceding
sentence shall be forfeited to CyrusOne as of the date of your termination of employment in accordance
with the terms of Section 6 hereof.
4.
Vesting Upon Termination of Employment Other than for Death, Disability or Cause.
Except as otherwise provided in any Employment Agreement, if the Company terminates your
employment other than by reason of your death or disability or other than for Cause, then, effective as of
the date of your termination of employment, you will become vested in the number of RSUs (rounded up
to the nearest whole RSU) that bears the same ratio to the total number of RSUs granted pursuant to this
Award Agreement as the number of days from the Award Date through the date of your termination of
employment bears to 1,096. Any Shares that are not vested after the calculation described in the preceding
sentence shall be forfeited to CyrusOne as of your termination of employment accordance with the terms
of Section 6 hereof. For purposes of this Agreement, “Cause” shall have the meaning set forth in any
Employment Agreement, or, if you do not have an Employment Agreement, shall mean the occurrence of
any one of the following: (i) your material dereliction of your duties, your gross negligence or substantial
failure to perform your duties with the Company (other than any such failure resulting from incapacity due
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to physical or mental illness); (ii) your engaging in (A) misconduct that is materially injurious to the
Company or (B) illegal conduct; (iii) your material breach of any written agreement by and between you
and the Company; (iv) your violation of any material provision of the Company’s Code of Business
Conduct and Ethics; or (v) your willful failure to cooperate in good faith with an investigation by any
governmental authority.
5.
Vesting Upon Termination of Employment After a Change in Control. If a Change in
Control occurs, and the acquiring corporation either assumes this award of RSUs, or substitutes new
awards with respect to stock of the acquiring corporation, the RSUs will not vest upon the Change in
Control; provided, however, that subject to the terms of any Employment Agreement and notwithstanding
any other provision of this Agreement to the contrary, in the event that within twelve months following a
Change in Control your employment is terminated by the Company other than for Cause, then, effective as
of the date of your termination of employment, you will become fully vested with respect to all of the
RSUs granted pursuant to this Award Agreement that have not previously been vested. In the event a
Change in Control occurs and the acquiring corporation does not assume this award of RSUs or provide
substitute awards, you will become fully vested with respect to all of the RSUs granted in this Award that
have not previously been vested.
6.
Forfeiture. Except as otherwise determined by the Committee or provided in Sections 1, 2,
3, 4, or 5 hereof or any Employment Agreement, any RSUs that remain unvested on the date of your
termination of employment shall be forfeited.
Settlement. Vested RSUs shall be settled no later than 60 days after such RSUs become
7.
vested in accordance with Sections 1, 2, 3, 4 or 5 above by delivering to you a number of shares of
CyrusOne Inc. common stock (“Shares”) equal to the number of vested RSUs. The Company may deliver
the Shares by delivery of physical certificates or by certificate-less book-entry issuance.
8.
Voting. You shall not have any voting rights with respect to the RSUs prior to the issuance
of Shares in settlement of vested Earned RSUs. Upon settlement of the Earned RSUs and issuance of
Shares, you will be entitled to all rights of a shareholder.
Dividend Equivalents. Each RSU granted hereunder is hereby granted in tandem with a
9.
corresponding right to receive an amount equal to each dividend that is made by the Company in respect of
a Share underlying the RSU to which such dividend relates (a “Dividend Equivalent”). Any such amounts
shall be paid within ten (10) days following the date such dividend is payable to shareholders, provided
that you are employed with the Company on the date of payment. Any Dividend Equivalent granted in
tandem with an RSU shall terminate upon the forfeiture of such RSU or the payment of an Earned RSU, as
applicable.Any Dividend Equivalents payable under the Plan will be treated as separate payments from the
underlying RSUs for purposes of Section 409A. There will be no reinvestment option or earned interest
credits on any Dividend Equivalent.
10.
Employment. For purposes of this Agreement, you shall be deemed to be an “Employee”
while, and only while, you are in the employ of the Company and considered to be employed under the
policies and procedures (including the payroll and withholding procedures) of the Company. In this
regard, the granting of this Agreement does not constitute a contract of employment and does not give you
the legal right to be continued as an Employee.
11.
Interpretation. You acknowledge that the Committee has the authority to construe and
interpret the terms of the Plan and this Agreement if and when any questions of meaning arises under the
Plan or this Agreement, and any such construction or interpretation shall be binding on you, your heirs,
executors, administrators, personal representatives and any other persons having or claiming to have an
interest in the Shares.
12.
Withholding. You are responsible for all federal, state and local income and employment
taxes payable with respect to the RSUs and the delivery of Shares upon settlement of the RSUs. Unless
you otherwise make arrangements satisfactory to the Company regarding the payment of any such tax,
upon vesting of the RSUs, the Company shall withhold a number of Shares having a market value equal to
the amount of taxes required to be withheld. Otherwise, the Company may, at its discretion and to the
extent it determines is necessary to pay such withholding tax amount, withhold any such withholding tax
amount from your salary or any other compensation payable to you.
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13.
Notices. All notices and other communications to be given hereunder shall be in writing
and shall be deemed to have been duly given when delivered personally or when deposited in the United
States mail, first class postage prepaid, and addressed to the General Counsel of the Company at the
Company’s principal corporate office, or to the employee at the address on file with the Company, or to
any other address as to which notice has been given in the manner herein provided.
14.
Effect of Employment Agreement. Notwithstanding any of the terms of the foregoing
sections of this Agreement, if the provisions of a written employment agreement between you and the
Company (any such agreement, an “Employment Agreement”) would require that the RSUs be vested
earlier than when such RSUs are vested under the terms of the foregoing sections of this Agreement, then
such Employment Agreement provisions shall control (and shall be deemed an amendment to this
Agreement and incorporated herein by reference). In the event of any conflict between the terms of the
Plan, on the one hand, and the terms of this Agreement or any Employment Agreement, on the other hand,
the terms of the Plan shall govern. In the event of any conflict between the terms of this Agreement and
the terms of any Employment Agreement, the terms of such Employment Agreement shall govern.
15.
Miscellaneous.
(a)
This Agreement shall be binding upon the parties hereto and their respective heirs,
executors, administrators, personal representatives, successors and assigns. Subject to the
provisions of the Plan and any applicable Employment Agreement, this Agreement constitutes the
entire agreement between the parties with respect to the subject matter hereof and shall be
construed and interpreted in accordance with the laws of the State of Texas. If any provisions of
this Agreement shall be deemed to be invalid or void under any applicable law, the remaining
provisions hereof shall not be affected thereby and shall continue in full force and effect.
(b)
In consideration of the Shares granted to you pursuant to this Agreement, you agree
to execute (via electronic grant acceptance) the Non-Disclosure and Non-Competition Agreement
attached as Exhibit A (the “Non-Competition Agreement”).
(c)
The Committee may waive any conditions or rights under, amend any terms of, or
alter, suspend, discontinue, cancel or terminate this Agreement prospectively or retroactively;
provided, however, that any such waiver, amendment, alteration, suspension, discontinuance,
cancelation or termination that would materially and adversely impair your rights hereunder shall
not to that extent be effective without your consent (it being understood, notwithstanding the
foregoing proviso, that this Agreement and the Shares shall be subject to the provisions of Sections
17, 18 and 20 of the Plan).
(d)
In the event of any adjustments in authorized Shares as provided in Article 18 of the
Plan, the number of RSUs and Shares or other securities to which you are entitled pursuant to this
Agreement shall be appropriately adjusted or changed to reflect such change, provided that any
such additional RSUs, Shares or additional or different shares or securities shall remain subject to
the restrictions in this Agreement.
(e)
Unless the Committee specifically determines otherwise, the RSUs are personal to
you and the RSUs may not be sold, assigned, transferred, pledged or otherwise encumbered other
than by will or the laws of descent and distribution. Any such purported transfer or assignment
shall be null and void.
(f)
All disputes, controversies and claims arising between you and CyrusOne
concerning the subject matter of this Agreement or the Plan shall be settled by arbitration in
accordance with the rules and procedures of the American Arbitration Association in effect at the
time that the arbitration begins, to the extent not inconsistent with this Agreement or the Plan. The
location of the arbitration shall be Dallas, Texas or such other place as the parties to the dispute
may mutually agree. In rendering any award or ruling, the arbitrator or arbitrators shall determine
the rights and obligations of the parties according to the substantive and procedural laws of the
State of Texas. The arbitration shall be conducted by an arbitrator selected in accordance with the
aforesaid arbitration procedures. Any arbitration pursuant to this Section 15(f) shall be final and
binding on the parties, and judgment upon any award rendered in such arbitration may be entered in
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any court, Federal or state, having jurisdiction. The parties to any dispute shall each pay their own
costs and expenses (including arbitration fees and attorneys’ fees) incurred in connection with
arbitration proceedings and the fees of the arbitrator shall be paid in equal amounts by the parties.
Nothing in this Section 15(f) shall preclude you or CyrusOne from seeking temporary injunctive
relief from any Federal or state court located within the State of Texas in connection with or as a
supplement to an arbitration hereunder.
(g)
This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original. The counterparts shall constitute one and the same instrument, which
shall be sufficiently evidenced by any one thereof. Headings used throughout this Agreement are
for convenience only and shall not be given legal significance. Whenever the words “include”,
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the
words “but not limited to”. The term “or” is not exclusive.
(h)
This Agreement and this award of RSUs is intended to satisfy the requirements of
Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) and any
regulations or guidance that may be adopted thereunder from time to time and shall be interpreted
by the Committee as it determines necessary or appropriate in accordance with Section 409A to
avoid a plan failure under Section 409A(a)(1). To ensure compliance with Section 409A, (i) under
all circumstances, vested RSUs that have not otherwise been forfeited shall be settled by delivery of
the Shares (or if applicable, cash) no later than March 15th of the year following the year in which
the RSUs vest, and (ii) this Agreement is subject to the provisions of Section 21.11 of the Plan
(including the six-month delay, if applicable). Whenever a payment under this Agreement specifies
a payment period with reference to a number of days, the actual date of payment within the
specified period shall be within the sole discretion of the Company, and in no event may the
Employee, directly or indirectly, designate the calendar year of any payment. This Section 14(h)
does not create any obligation on the part of the Company to modify the terms of this Agreement or
the Plan and does not guarantee that the RSUs or the delivery of Shares upon settlement of the
RSUs will not be subject to taxes, interest and penalties or any other adverse tax consequences
under Section 409A. The Company will have no liability to you or any other party if the RSUs, the
delivery of Shares (or cash) upon settlement of the RSUs or any other payment hereunder that is
intended to be exempt from, or compliant with, Section 409A, is not so exempt or compliant or for
any action taken by the Committee with respect thereto.
15.
Electronic Delivery and Acceptance of Award. By accepting this Award, you agree to participate in
the Plan through an on-line or electronic system maintained by the Company or a third party designated by
the Company and to accept electronic delivery of any documents, communications or other information
that the Company may be required to deliver in connection with the Plan or this Award. Electronic delivery
of a document may be via e-mail or by reference to a location on the Company’s intranet site or the internet
site of a designated third-party vendor involved in administering the Plan. This Award and Agreement
(including any Schedules or Exhibits attached hereto or incorporated by reference herein) can be accepted
and signed via your on-line equity account accessible at https://www.benefits.ml.com. Please note that if
you do not accept the Award (including the non-disclosure and non-competition agreement) within 30 days
of the Award Date, the Award may be forfeited.
EXHIBIT A
NON-DISCLOSURE AND NON-COMPETITION AGREEMENT
CyrusOne LLC and its subsidiaries and affiliates (collectively, the “Company”) require certain
employees to sign non-disclosure and non-competition agreements (“Agreement”) as part of the
Company's efforts to protect its confidential information and goodwill, and to maintain its competitive
position. In consideration of employment, promotion, the provision of confidential information and
goodwill and/or other valuable consideration, the employee ("Employee") entering into this Agreement
agrees as follows:
1.
The Company provides colocation and associated services to businesses.
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2.
In conducting its business, the Company develops and utilizes, among other things,
technology, data, research and development, concepts, goodwill, customer relationships, training, and trade
secrets. The success of the Company and each of its employees is directly predicated on the protection of
the Company’s goodwill and its confidential, proprietary, and/or trade secret information. Employee
acknowledges that in the course of employment with the Company, Employee will be entrusted with, have
access to and obtain goodwill belonging to the Company and intimate, detailed, and comprehensive
knowledge of confidential, proprietary, and/or trade secret information ("Information") that Employee did
not have or have access to prior to signing this Agreement, including some or all of the following: (1)
information concerning the Company’s products and services; (2) information concerning the Company’s
customers, suppliers and employees; (3) information concerning the Company’s advertising and marketing
plans; (4) information concerning the Company’s strategies, plans, goals, projections, and objectives; (5)
information concerning the Company’s research and development activities and initiatives; (6) information
concerning the strengths and weaknesses of the Company’s products or services; (7) information
concerning the costs, profit margins, and pricing associated with the Company’s products or services; (8)
information concerning the Company’s sales strategies, including the manner in which it seeks to position
its products and services in the market; (9) financial information concerning the Company’s business,
including budgets and margin information, and (10) other information considered confidential by the
Company. Employee may also be entrusted with and have access to Third Party Information. The term
“Third Party Information” means confidential or trade secret information that the Company may receive
from third parties or information which is subject to a duty on the Company’s part to maintain the
confidentiality of such Third Party Information and to use it only for limited purposes. The terms
“Information” and “Third Party Information” do not include information that becomes generally available
to the public other than as a result of unauthorized disclosure by Employee.
3.
Employee agrees that the Information and goodwill are highly valuable, provide a
competitive advantage to the Company and allow Employee a unique competitive opportunity and
advantage in developing business relationships with the Company’s current or prospective customers in the
industry. Employee further agrees that, given the markets in which the Company competes, confidentiality
of the Information is necessary without regard to any geographic limitation.
4.
Both during and after Employee’s employment with the Company, Employee agrees to
retain the Information and Third Party Information in absolute confidence and not to use the Information or
Third Party Information, or permit access to or disclose the Information or Third Party Information to any
person or organization without the Company’s express written consent, except as required for Employee to
perform Employee’s job with the Company or as otherwise provided in Section 19below. Employee’s
obligations set forth in the preceding sentence are in addition to any other obligations Employee has to
protect the Information and Third Party Information, including obligations arising under the Company’s
policies, ethical rules, and applicable law. Employee further agrees not to use the goodwill for the benefit
of any person or entity other than the Company. Employee hereby agrees that upon cessation of
Employee’s employment, for whatever reason and whether voluntary or involuntary, or upon the request of
the Company at any time, Employee will immediately surrender to the Company all of the property and
other things of value in Employee’s possession or in the possession of any person or entity under
Employee’s control that are the property of the Company, including without any limitation all personal
notes, drawings, manuals, documents, photographs, or the like, including all electronically stored
information, as well as any copies and derivatives thereof, relating directly or indirectly to any Information
or New Developments (as defined below), or relating directly or indirectly to the business of the Company,
or, with the Company’s written consent, shall destroy such copies of such materials, including any copies
stored in electronic format.
5.
Employee recognizes the need of the Company to prevent unfair competition and to protect
the Company’s legitimate business interests. Therefore, ancillary to the otherwise enforceable agreements
set forth in this Agreement, and to avoid the actual or threatened misappropriation of the Information or
goodwill, Employee agrees to the restrictive covenants set forth in this Agreement. Accordingly,
Employee agrees that, during Employee's employment and for a period of one year following Employee’s
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separation from employment for any reason, Employee will not for any reason, accept employment or
engage in any business activity (whether as a principal, partner, joint venturer, agent, employee,
salesperson, consultant, independent contractor, director or officer) with a “Competitor” of the Company
where such employment or activity would involve Employee:
(i)
providing, selling or attempting to sell, or assisting in the sale or attempted sale of,
any services or products competitive with or similar to those services or products with
which Employee had any involvement, and/or regarding which Employee had access to any
Information, during Employee’s employment with the Company (including any products or
services being researched or developed by the Company during Employee’s employment
with the Company); or
(ii)
providing or performing services that are similar to any services that Employee
provided to or performed for the Company during Employee’s employment with the
Company.
For purposes of this provision, a “Competitor” is any business or entity that, at any time during the
one-year period following Employee’s separation from employment, provides or seeks to provide, any
products or services similar or related to any products sold or any services provided by the Company.
“Competitor” includes, without limitation, any company or business that provides data colocation and
related services to businesses or entities.
The restrictions set forth in this Section 5 will be limited to the geographic areas (i) where Employee
performed services for the Company, (ii) where Employee solicited or served the Company’s customers or
clients, or (iii) otherwise impacted or influenced by Employee’s provision of services to the Company.
Notwithstanding the foregoing, Employee may invest in securities of any entity, solely for investment
purposes and without participating in the business thereof, if (A) such securities are traded on any national
securities exchange or the National Association of Securities Dealers Automatic Quotation System or
equivalent non-U.S. securities exchange, (B) Employee is not a controlling person of, or a member of a
group which controls, such entity and (C) Employee does not, directly or indirectly, own one percent (1%)
or more of any class of securities of such entity.
6.
During Employee's employment and for a period of one year following Employee’s
separation from employment for any reason, Employee will not, directly or indirectly, through any person
or entity, communicate with (i) any of the Company’s customers known to Employee during Employee’s
employment with the Company and from which the Company generated revenue during the one-year
period preceding Employee’s separation from employment; (ii) any prospective customers known to
Employee during the one-year period prior to Employee’s separation from employment; or (iii) any of the
Company’s suppliers known to Employee during the one-year period prior to Employee’s separation from
employment, in each case, for the purpose or intention of (x) attempting to sell any products or services
competitive with or similar to those products or services provided by the Company or (y) attempting to
divert business of any such customer, prospective customer or supplier from the Company to a Competitor.
7.
In the event Employee is uncertain as to the application of this Agreement to any
contemplated employment opportunity or business activity, Employee agrees to inquire in writing of the
Company’s Department of Human Resources, specifying the contemplated opportunity or activity. The
Company will attempt to respond within ten (10) business days following receipt of said writing. In no
event will the Company’s failure to respond within ten business days constitute a waiver of any of the
provisions of this Agreement.
8.
All ideas, inventions, discoveries, concepts, trademarks, or other developments or
improvements, whether patentable or not, conceived by Employee, alone or with others, at any time during
the term of Employee’s employment, whether or not during working hours or on the Company’s premises,
which are within the scope of or related to the business operations of the Company (“New
Developments”), shall be and remain the exclusive property of the Company. To the extent permitted by
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law, all New Developments consisting of copyrightable subject matter shall be deemed “work made for
hire” as defined in 17 U.S.C. § 101. To the extent that the foregoing does not apply, Employee hereby
assigns to the Company, for no additional consideration, Employee’s entire right, title and interest in and to
all New Developments. Employee shall do all things reasonably necessary to ensure ownership of such
New Developments by the Company, including the execution of documents assigning and transferring to
the Company, all of Employee’s rights, title, and interest in and to such New Developments, and the
execution of all documents required to enable the Company to file and obtain patents, trademarks, and
copyrights in the United States and foreign countries on any of such New Developments.
Subject to Section 19 below, Employee will not disparage the Company in any way which
9.
could adversely affect the goodwill, reputation, and business relationships of the Company with the public
generally, or with any of their customers, suppliers, or employees.
10. During Employee's employment by the Company and for a period of one year following
Employee’s separation from employment for any reason, Employee will not, directly or indirectly, induce
or seek to induce any other employee or consultant of the Company to terminate his/her employment or
consulting relationship with the Company, nor will Employee, directly or indirectly, induce or seek to
induce any other employee or consultant of the Company to accept employment with a Competitor, nor
will Employee be involved in the hiring of any other employee or consultant of the Company on behalf of
any person or entity other than the Company. Without limitation, Employee will not, directly or indirectly,
induce or seek to induce any other current or former employee or consultant of the Company to violate any
of his/her non-compete and/or non-solicitation and/or non-disclosure and/or non-disparagement
agreement(s) with the Company.
11. During Employee’s employment by the Company and for a period of one year following
Employee’s separation from employment for any reason, Employee will, before accepting an offer of
employment from any person or entity, provide such person or entity a copy of this Agreement. Employee
authorizes the Company to provide a copy of this Agreement to any and all future employers of
Employee.
12. Employee represents that Employee is not bound by any agreement or other duty to a former
employer or any other party that would prevent Employee from fully performing Employee’s duties and
responsibilities for the Company or complying with any obligations hereunder. Employee agrees that
Employee will not use or disclose any confidential or proprietary information or trade secrets of any
former employer or other person or entity in the course of Employee’s employment with the Company, and
Employee will not bring onto the premises of the Company any such information unless consented to in
writing by such former employer, person or entity.
13. Employee further agrees and consents that this Agreement and the rights, duties, and
obligations contained in it may be and are fully transferable and/or assignable by the Company, and shall
be binding upon and inure to the benefit of the Company’s successors, transferees, or assigns.
14. Employee further agrees that any breach or threatened breach of this Agreement would result in
material damage and immediate and irreparable harm to the Company. Employee further agrees that any
breach of the restrictive covenants contained herein would result in the inevitable disclosure of the
Information. Employee therefore agrees that the Company, in addition to any other rights and remedies
available to it, shall be entitled to injunctive and other equitable relief, without posting bond or other
security, in the event of any such breach or threatened breach by Employee. Employee acknowledges that
the prohibitions and obligations contained in this Agreement are reasonable and do not prevent Employee’s
ability to use Employee’s general abilities and skills to obtain gainful employment. Therefore, Employee
agrees that Employee will not sustain monetary damages in the event that Company obtains a temporary,
preliminary or permanent injunction to enforce this Agreement.
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15. If in any judicial proceeding or arbitration, a court or an arbitrator finds that any of the
restrictive covenants in this Agreement exceed the time, geographic or scope limitations permitted by
applicable law, Employee and the Company intend that such provision be reformed by such court or
arbitrator to the maximum time, geographic or scope limitation, as the case may be, then permitted by such
law. Furthermore, it is agreed that any period of restriction or covenant hereinabove stated shall not
include any period of violation or period of time required for litigation or arbitration to enforce such
restrictions or covenants.
16. Employee agrees that this Agreement shall be governed by the laws of the State of Texas,
without giving effect to any conflict of law provisions. Employee further voluntarily consents and agrees
that the state or federal courts with jurisdiction over Denton County, Texas: (i) must be utilized solely and
exclusively to hear any action arising out of or relating to this Agreement; and (ii) are a proper venue for
any such action and Employee consents to the exercise by such court of personal jurisdiction over
Employee for any such action.
17. If any of the provisions in this Agreement conflict with similar provisions in any other
document or agreement related to Employee’s employment with Company, the provisions of this
Agreement will apply; provided, however, if the restrictions set forth in the other document or agreement
at issue are broader in scope than those in this Agreement and are enforceable under applicable law, those
restrictions in the other document or agreement will apply. The provisions of this Agreement are
severable. To the extent that any portion of this Agreement is deemed unenforceable, such portion may,
without invalidating the remainder of the Agreement, be modified to the limited extent necessary to cure
such unenforceability, such unenforceability shall not affect any other provisions in this Agreement, and
this Agreement shall be construed as if such unenforceable provision had never been contained herein.
18. This Agreement does not obligate Company to employ Employee for any period of time and
Employee's employment is "at will."
19. Notwithstanding any other provision of this Agreement, nothing contained in this Agreement
limits Employee’s ability to file a charge or complaint with the Equal Employment Opportunity
Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the
Securities and Exchange Commission or any other federal, state or local governmental agency or
commission (collectively, “Government Agencies”), or from providing truthful testimony in response to a
lawfully issued subpoena or court order. Employee understands that this Agreement does not limit
Employee’s ability to communicate with any Government Agencies or otherwise participate in any
investigation or proceeding that may be conducted by any Government Agency, including providing
documents or other information, without notice to the Company.
Accepted on March 09, 2017
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IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF TEXAS
SHERMAN DIVISION
CYRUSONE LLC and ,
CYRUSONE, INC.,
Plaintiffs,
v.
STUART LEVINSKY,
Defendant.
§
§
§
§
§
§
§
§
§
§
Civil Action No. 4:19-cv-00043-ALM
ORDER EXTENDING TEMPORARY RESTRAINING ORDER
Before the Court is the parties’ Agreed Motion to Extend Temporary Restraining Order
with Request for Expedited Consideration (Dkt. #4).
After considering the Motion, the Court finds that, for good cause, the Motion should be,
and hereby is, GRANTED. The bases for issuance of the temporary restraining order signed
on January 14, 2019, as set out in that order are incorporated here by reference as if set out in
full. It is therefore ORDERED that the Temporary Restraining Order issued on January
.
14, 2019, remains and will remain in effect through the date of this Court’s ruling on Plaintiffs’
Motion for Preliminary Injunction, or until further order of this Court.
It is further ORDERED that no additional bond or deposit in lieu thereof shall be
required.
SIGNED this 24th day of January, 2019.
___________________________________
AMOS L. MAZZANT
UNITED STATES DISTRICT JUDGE
ORDER EXTENDING TEMPORARY RESTRAINING ORDER – Page 1
22245648v.2
Case 2:18-cv-00738-KJD-CWH Document 21-19 Filed 04/24/19 Page 1 of 4
EXHIBIT Q
Case 2:18-cv-00738-KJD-CWH Document 21-19Filed 02/26/16 Page 1 of of 4
Filed 04/24/19 Page 2 3
Case 2:14-cv-01727-APG-NJK Document 57
58
02/29/16
1
2
3
4
5
6
7
8
MARK G. TRATOS, ESQ.
Nevada Bar No. 1086
tratosm@gtlaw.com
LAURI S. THOMPSON, ESQ.
Nevada Bar No. 6846
thompsonl@gtlaw.com
SHAUNA L. NORTON, ESQ.
Nevada Bar No. 11320
nortons@gtlaw.com
GREENBERG TRAURIG, LLP
3773 Howard Hughes Parkway
Suite 400 North
Las Vegas, Nevada 89169
Telephone: (702) 792-3773
Facsimile: (702) 792-9002
Counsel for Plaintiff
9
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA
GREENBERG TRAURIG, LLP
3773 Howard Hughes Parkway, Suite 400 North
Las Vegas, Nevada 89169
Telephone: (702) 792-3773
Facsimile: (702) 792-9002
10
11
12
SWITCH, LTD. a/k/a SWITCH
COMMUNICATIONS GROUP, LLC,
a Nevada limited liability company,
13
14
15
16
Plaintiff,
Case No.: 2:14-cv-01727-APG-NJK
[PROPOSED] ORDER GRANTING
STIPULATION FOR ENTRY OF
PERMANENT INJUNCTION
v.
FIRESPOTTER LABS a/k/a SWITCH
COMMUNICATIONS, INC., a
Delaware corporation,
17
Defendant.
18
19
20
This Court having reviewed and considered the Stipulation for Entry of Permanent Injunction
21
submitted by Plaintiff Switch Ltd. aka Switch Communications Group, LLC, (“Plaintiff Switch”)
22
and Defendant Firespotter Labs aka Switch Communications, Inc. (“Firespotter”) by and through
23
their respective counsel of record, and for good cause appearing therefore:
24
IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:
25
1.
26
27
28
This Decree shall be the final judgment with prejudice of all claims each of the
parties has raised against the other in this lawsuit, including all claims and counterclaims.
2.
Plaintiff Switch designs, constructs, and operates the world’s most powerful
telecommunications offerings, data centers, and service technology ecosystems.
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1
3.
Plaintiff Switch owns the mark SWITCH and multiple variants thereto, and has
2
continuously been using the trademark SWITCH in connection with its data center, colocation,
3
telecommunications, and cloud computing services in commerce since at least as early as November
4
30, 2003.
5
4.
Plaintiff Switch owns multiple U.S. federal trademark registrations for its “SWITCH”
marks, including but not limited to, SWITCH (U.S. Reg. No. 3,229,168), SWITCH T-SCIF (U.S.
7
Reg. No. 3,547,908), SWITCH WDMD (U.S. Reg. No. 3,540,816), SWITCHNAP (U.S. Reg. No.
8
3,547,909), SWITCHNAP WORLD (U.S. Reg. No. 3,880,400), SWITCHFORCE (U.S. Reg. No.
9
3,942,121), SWITCH MICRO-MOD (U.S. Reg. No. 4,062,244), SWITCHSERVE (U.S. Reg. No.
10
GREENBERG TRAURIG, LLP
3773 Howard Hughes Parkway, Suite 400 North
Las Vegas, Nevada 89169
Telephone: (702) 792-3773
Facsimile: (702) 792-9002
6
4,058,546), SWITCHMOD (U.S. Reg. No. 3,984,525), SWITCH L.D.C. (U.S. Reg. No. 3,984,524),
11
SWITCHCLOUD I.C.E. (U.S. Reg. No. 4,062,248), SWITCHSTACK (U.S. Reg. No. 4,107,725),
12
SWITCH IC3 (U.S. Reg. No. 4,104,345), SWITCHCUBE (U.S. Reg. No. 4,335,332),
13
SWITCHSCRIBE (U.S. Reg. No. 4,217,085), SWITCHGAUNTLET (U.S. Reg. No. 4,516,916)
14
SWITCHGAUNTLET (U.S. Reg. No. 4,516,916) SWITCHWORKS (U.S. Reg. No. 3,942,079),
15
SWITCHSAFE (U.S. Reg. No. 3,946,128), SWITCHMACROMOD (U.S. Reg. No. 3,984,966),
16
SWITCH CLOUD AI (U.S. Reg. No. 4,050,103) SWITCHEDUP (U.S. Reg. No. 4,062,245),
17
SWITCHCORE (U.S. Reg. No. 4,062,254), and SWITCHMICRO-MOD (U.S. Reg. No. 4,137,600)
18
(collectively hereinafter referred to as the “Switch Marks”).
19
5.
Based on Plaintiff Switch’s federal registrations and extensive use, Plaintiff Switch
20
owns the exclusive right to use the mark SWITCH and the Switch Marks in connection with
21
telecommunications, data center, colocation, and cloud computing services.
22
6.
The extensive advertising and promotion by Plaintiff Switch of the Switch Marks
y
23
throughout the United States and around the world have resulted in the SWITCH name and mark
24
being distinctive and famous for telecommunications services, data center, colocation, and cloud
25
computing services.
26
7.
On or about October 1, 2014, Firespotter, a technology start-up company located in
27
San Francisco, California, began providing a cloud-based telephone system under the marks
28
SWITCH and SWITCH.CO. In connection with its services, on or around July 27, 2014, Firespotter
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1
acquired the Internet domain name and created the corresponding website.
THEREFORE, IT IS FURTHER ORDERED that Plaintiff Switch’s request for Permanent
3
Injunction is GRANTED, subject to the transition period agreed upon by the parties. Firespotter, its
4
respective officers, agents, servants, employees, affiliates, and/or all persons acting in concert or
5
participation with it, are permanently enjoined (1) from using Plaintiff Switch’s SWITCH trademark,
6
the Switch Marks, or confusingly similar variations thereof, alone or in combination with any other
7
letters, words, letter strings, phrases or designs, in commerce or in connection with any business or
8
for any other purpose (including, but not limited to, on web sites and in domain names); and (2) from
9
registering, owning, leasing, selling or trafficking in any domain name containing Plaintiff Switch’s
10
GREENBERG TRAURIG, LLP
3773 Howard Hughes Parkway, Suite 400 North
Las Vegas, Nevada 89169
Telephone: (702) 792-3773
Facsimile: (702) 792-9002
2
Switch Marks or confusingly similar variations thereof, alone or in combination with any other
11
letters, words, phrases or designs as the SWITCH mark is a famous mark.
s
12
The claims Firespotter has raised in this lawsuit are DENIED with prejudice.
13
IT IS SO ORDERED this ___ day ofof February, 2016.
29th day ______________, 2016.
14
15
____________________________________
__________________________
____
16
United States District Court Judge
17
18
19
Respectfully submitted by:
GREENBERG TRAURIG, LLP
20
21
22
23
24
25
/s/ Lauri S. Thompson
Mark G. Tratos, Esq.
Lauri S. Thompson, Esq.
Shauna L. Norton, Esq.
3773 Howard Hughes Pkwy.
Suite 400 North
Las Vegas, NV 89169
Attorneys for Plaintiff
26
27
28
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