Savvis

Savvis, Inc.
Company type	Subsidiary
Industry	Managed hosting, Colocation, IT services
Founded	November 1995; 31 years ago
Founder	Timothy Munro Roberts, Andrew Gladney
Headquarters	Town and Country, Missouri, United States
Area served	North America, Europe, Asia
Products	Managed hosting, Colocation, IT consulting, Network services
Owner	Lumen Technologies
Parent	Lumen Technologies

Savvis operates as a subsidiary of Lumen Technologies (previously known as CenturyLink), focusing on managed hosting and colocation solutions, with its headquarters located in Town and Country, Missouri. The company manages more than 50 data centers spanning North America, Europe, and Asia, providing IT consulting and network services to around 2,500 corporate and governmental clients.

Early history

Established in November 1995 under the name DiamondNet, Savvis was co-founded by CTO/COO Timothy Munro Roberts and CEO Andrew Gladney. Gladney invested between $600,000 and $1 million, acquiring a 75% ownership share, while Roberts retained the remaining 25%.

In the same year, Gary Zimmerman joined from SBC Communications Inc. as vice president of engineering and was instrumental in creating the company’s innovative national network architecture. By 2001, Keynote Systems recognized Savvis's network as the fastest Backbone Network in the industry.

The company’s initial significant contract came from Apple Computer, Inc., secured through Roberts’ efforts, which helped build credibility and attract additional business. This momentum led to investment from Gateway Venture Partners and the hiring of Sam Sanderson, former CEO of Rogers Cable, as CEO. Sanderson focused on expanding contracts and marketing initiatives, while CFO Bob Murphy (formerly with Williams Communications) enhanced financial oversight and capital raising.

Roberts left the company in 1997; Gladney transitioned from CEO to vice chairman before fully departing by 1999. At the time of Savvis’s initial public offering in 2000, Gladney held only a 1% stake.

Growth and acquisitions

In 1999, Bridge Information Systems acquired Savvis, which then went public on NASDAQ in 2000 under the ticker "SVVS". Since that time, Savvis has grown through both internal development and strategic acquisitions. In 2002, it purchased WAM!NET, a provider of content management and media applications. The following year, it acquired hosting operations from Intel Online Services. In 2004, Savvis expanded further by acquiring Cable & Wireless America’s assets—including 15 data centers—clients of Exodus Communications, the Tier-1 Internet backbone formerly owned by MCI, Digital Island’s content delivery network (CDN), along with a professional services group for $155 million in cash plus $12.5 million in assumed liabilities.

Name change

Reflecting its evolution beyond network services into comprehensive global IT solutions, the company rebranded from Savvis Communications Corporation to Savvis, Inc. in 2005. Up until January 21, 2014, it operated as Savvis, a CenturyLink company—functioning as an independent managed-hosting division within CenturyLink. Early in 2014, the business was renamed CenturyLink Technology Solutions to better align with its parent corporation. By early 2015, CenturyLink Technology Solutions was fully merged into CenturyLink's IT Services division under the consolidated CenturyLink brand.

Content delivery network divestitures

In 2006, Savvis divested its content delivery network (CDN) operations to Level 3 Communications for $135 million. This deal encompassed network infrastructure assets, client contracts, and associated intellectual property rights.

Growth in EMEA Region

In 2007, Savvis broadened its global reach by inaugurating a data center in Singapore, enhancing its presence across the Asia Pacific market. The following year, it established another data center in London, thereby expanding its service capabilities throughout Europe.

Fusepoint Acquisition

Savvis completed the acquisition of Canadian technology company Fusepoint in June 2010. This deal included data center facilities located in Toronto, Montreal, and Vancouver.

Market Recovery

By January 2011, Savvis had secured a position within the Leaders quadrant of Gartner's Magic Quadrant for Cloud Infrastructure-as-a-Service and Web Hosting (2010 Edition). It stood alongside firms such as AT&T, Rackspace, and Verizon Business, evaluated on criteria including "completeness of vision" and "ability to execute." During this period, Savvis also introduced the global Savvis Alliances Program focused on cloud services for channel partners and collaborated with Bharti Airtel Limited to enhance managed hosting and cloud computing offerings in India.

CenturyLink Acquisition

On April 27, 2011, telecommunications provider CenturyLink, Inc. announced an agreement to acquire Savvis for roughly $2.5 billion USD via a combination of cash and stock. This transaction valued Savvis shares at $40 each, representing an 11% premium over the previous closing price. Shareholders received $30 per share in cash plus $10 in CenturyLink common stock. Later that year, in September 2011, Savvis revealed plans to expand operations in Atlanta, Boston, Toronto, and open new data centers in Seattle and Piscataway, New Jersey. These additions contributed 100,000 square feet of raised floor space, increasing the total global sellable capacity to two million square feet.

Allegations of Supporting Spam Operations

On September 8, 2004, internal documents were disclosed by Savvis' Operations Security Manager indicating that the company had actively sought business from spammers, generating monthly revenues estimated between $200,000 and $2 million from these clients. In response to adverse media attention, Savvis partnered with Spamhaus to address spam-related challenges. Steve Linford, CEO of Spamhaus, commended Savvis as a "White Hat Network" due to its robust anti-spam policies and advocated for broader industry adoption of their approach.

American Express Legal Dispute

In October 2005, then-CEO Robert A. McCormick along with Savvis faced legal action initiated by American Express concerning $241,000 charged on McCormick's corporate American Express Card at the New York strip club Scores. McCormick contested the charges; however, Scores submitted fingerprint evidence supporting the transactions. Following an investigation by the audit committee, Savvis accepted McCormick’s resignation in November 2005. The dispute involving American Express, Savvis, McCormick, and Scores was ultimately settled through negotiation by March 2006.

Litigation Regarding Security Certifications

In 2009, Savvis encountered several lawsuits accusing it of improperly certifying compliance with credit card security standards for payment processors. These allegations raised concerns about potential significant security vulnerabilities. One particular claim highlighted that when Savvis issued certification, CardSystems was storing unencrypted cardholder information improperly, calling into question Savvis’s oversight responsibilities in maintaining security compliance.

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