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Hostway Launches One of Canada,s Largest Public Clouds in Vancouver

Cloud, Managed and Hybrid Cloud Provider Partners with Cloud4SMB Expo to Bring SMBs Closer to Cloud Compatibility

Vancouver and Austin — October 2, 2012 — Hostway Services, Inc, a leading provider of cloud, managed and hybrid cloud services, today announced the launch of its new Vancouver Cloud hosting environment, expanding the company's public cloud environment for complete coast-to-coast access in North America. The Pacific Northwest location provides a Canadian cloud option for companies looking to tap into the power of the cloud to save money, enhance performance, scale rapidly and achieve mission-critical disaster preparedness and recovery solutions.

The Vancouver, British Columbia facility is the third North American Hostway datacenter to come online in less than two years since the company launched its hosted cloud solution in 2010. The company intends to continue expanding its footprint, as worldwide demand for reliable, enterprise-grade managed services continues to grow. In fact, according to IDC, the market for public IT cloud services in Canada exceeded half a billion dollars in 2011, with the SaaS segment leading the way. The market is expected to continue rapid growth, with IDC predicting nearly 30 percent CAGR over the next four years.

Using a Vancouver-based cloud allows Canadian customers to store data under the purview of Canada's Personal Information Protection and Electronic Documents Act (PIPEDA), as opposed to the United States' Patriot Act. This also gives Canadian public entities an opportunity to move to the cloud while maintaining privacy and compliance obligations.

"We've seen tremendous demand among our existing customers for a non-U.S., West Coast data center for a variety of reasons," said Mark Adolph, executive vice president and chief financial officer for Hostway. "Not only is geographic diversity for disaster recovery important, but this new option also provides access for Asia-Pacific companies looking to host in North America. We also expect Canadian companies that prefer to or are required by law to host in Canada will fuel fast expansion of our Canadian cloud."

Like its Austin, Texas and Tampa, Fla. facilities, Hostway's new Vancouver cloud environment offers the same industry-leading level of system administration and network support for deployment and management of its FlexCloud public and private cloud environments. The new platform also supports easy setup of a Hybrid Cloud that links Vancouver cloud resources to the customer's managed, collocated, internal or existing cloud infrastructure to create a high-performance, geographically diverse, flexible hosting solution.

The Vancouver site will also be made available as part of Hostway's newly launched virtual machine (VM) replication service, one of the first disaster recovery solutions of its kind providing low-cost, compliance-level cross-site and site-to-site replication on the new Windows Server 2012 Hyper-V Replica feature in the Windows Server 2012 operating system.

For more information about the Hostway Vancouver cloud, visit www.hostway.com/infrastructure/cloud-data-centers.html.

About Hostway Services, Inc.

Hostway Services, Inc. is a leader in Cloud, Managed, Web and Hybrid Hosting. Hostway delivers reliable, secure, and scalable Infrastructure-as-a-service (IaaS) solutions to over 500,000 customers worldwide. Hostway has emerged as one of the largest cloud hosting and Infrastructure-as-a-Service providers in the world due to the company's expertise in developing secure, multi-tenant hosting environments and is committed to providing SMB's and large enterprises with cost effective business solutions. Hostway's core products include Managed Hosting, Cloud Hosting, Web Hosting, and Email and Applications.

Hostway Media Relations
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