October 23, 2002 -- ServePath, a provider of dedicated servers and managed hosting services, will add colocation services as part of its expansion into new space at 650 Townsend Street in San Francisco.
ServePath will use the 5,000 square foot facility to house its more than 500 dedicated servers, which start at $89.99 a month. ServePath will also be offering colocation services in the new facility, targeting the small to medium-sized business customer.
ServePath president and co-founder John Keagy sees an opportunity in the colo market in the wake of the failures of numerous Bay Area hosting providers.
"There used to be lots of places in San Francisco where someone could put a quarter-rack or half-rack and have full backup," said Keagy. "Then a lot of companies built a lot of space, and the prices got out of hand, and that kind of business model got crushed. The bankruptcies have really taken their toll."
The space at 650 Townsend became available when another provider returned the fully-finished facility to the landlord, according to Keagy.
"The facility we have is an awesome gift from the past," said Keagy. "ServePath has leveraged the infrastructure built during the dot-com boom to become the West Coast's leading dedicated server experts. We're really focused, and I think customers reward focus."
ServePath's focus has been the dedicated server market, which has experienced strong growth in the "middle ground" hosting space between low-priced shared hosting and colocation.
ServePath is a self-funded, privately held California corporation with no debt.
It was launched in by the founders of Stockton, Calif.-based InReach Internet, which offered local Internet access throughout the Central Valley.