Agreement represents continued successful execution on QTS’ strategic growth plan
Under the terms of the agreement, GDT will expand its colocation presence within QTS facilities to support customers as they are migrated to GDT’s platform. As GDT is an existing QTS partner and CloudRamp customer, QTS will facilitate a seamless integration with GDT through its Service Delivery Platform (SDP), which will provide customers enhanced visibility and control of their IT environments. Upon transition of the customers, GDT will maintain the current service level and support pursuant to the terms of each individual customer contract.
“We are pleased to partner with GDT, a leading managed IT provider and current QTS CloudRamp customer, to extend our hybrid solution capabilities while maintaining the consistent world-class service and support our customers have come to expect,” said Chad Williams, Chairman and CEO – QTS.
“This agreement also represents the next step in our strategic plan to accelerate growth and profitability,” Mr. Williams continued. “Consistent with our goal of narrowing the scope of cloud and managed services that we directly deliver, this partnership improves our ability to continue to deliver a differentiated hybrid solution, while unlocking enhanced profitability and future growth opportunities for QTS. Through SDP, we can enable a broader set of services for our customers through partner platforms including public cloud providers, Nutanix for Private Cloud, Megaport and Packetfabric for universal software-defined connectivity, and now GDT for managed hosting and other IT solutions.”
As part of the agreement, GDT will pay QTS a recurring partner channel fee based on revenue that is transitioned, as well as future growth on those accounts. While the financial benefit to QTS during the year will be relatively modest as the accounts are transitioned, this partnership arrangement is expected to support future revenue growth and profitability, beginning in 2019 and beyond, without significant cost to QTS. QTS expects that, in transitioning customer contracts to GDT, the Company will be able to drive accelerated leasing performance and growth, improve predictability in its business and significantly enhance overall profitability.
“We are pleased to expand our partner ecosystem with QTS, one of the leading innovators in the data center space,” said GDT CEO, JW Roberts. “This new partnership will greatly enhance our customer-first focus and our ability to consistently deliver innovative solutions to the IT industry. We look forward to managing a smooth customer transition and delivering additional value.”
In connection with today’s announcement, QTS also announced that the Company will issue its financial results for the first quarter ended March 31, 2018 before market open on Wednesday, April 25, 2018. The Company will also conduct a conference call and webcast at 7:30 a.m. Central time / 8:30 a.m. Eastern time. The dial-in number for the conference call is (877) 883-0383 (U.S.) or (412) 902-6506 (International). The participant entry number is 7555289# and callers are asked to dial in ten minutes prior to start time. A link to the live broadcast and the replay will be available on the Company's website (www.qtsdatacenters.com) under the Investors tab.
Headquartered in Dallas, TX with approximately 700 employees, GDT is a global IT integrator and solutions provider approaching $1 Billion in annual revenue. GDT aligns itself with industry leaders, providing the design, build, delivery and management of IT solutions and services.
QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of data center solutions across a diverse footprint spanning more than 6 million square feet of owned mega scale data center space throughout North America. Through its software-defined technology platform, QTS is able to deliver secure, compliant infrastructure solutions, robust connectivity and premium customer service to leading hyperscale technology companies, enterprises, and government entities. Visit QTS at www.qtsdatacenters.com, call toll-free 877.QTS.DATA or follow on Twitter @DataCenters_QTS.
Forward Looking Statements
Some of the statements contained in this release constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In particular, statements pertaining to QTS Realty Trust, Inc. and its subsidiaries’ (the “Company”) capital resources, portfolio performance, results of operations, anticipated growth in our funds from operations and anticipated market conditions contain forward-looking statements. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You also can identify forward-looking statements by discussions of strategy, plans or intentions.
The forward-looking statements contained in this release reflect the Company’s current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed in any forward-looking statement. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in the Company’s markets or the technology industry; obsolescence or reduction in marketability of our infrastructure due to changing industry demands; global, national and local economic conditions; the Company’s ability to successfully execute its strategic growth plan and realize its expected benefits; risks related to the Company’s international operations; difficulties in identifying properties to acquire and completing acquisitions; the Company’s failure to successfully develop, redevelop and operate acquired properties or lines of business; significant increases in construction and development costs; the increasingly competitive environment in which the Company operates; defaults on, or termination or non-renewal of leases by customers; decreased rental rates or increased vacancy rates; increased interest rates and operating costs, including increased energy costs; financing risks, including the Company’s failure to obtain necessary outside financing; dependence on third parties to provide Internet, telecommunications and network connectivity to the Company’s data centers; the Company’s failure to qualify and maintain its qualification as a real estate investment trust; environmental uncertainties and risks related to natural disasters; financial market fluctuations; and changes in real estate and zoning laws, revaluations for tax purposes and increases in real property tax rates.
While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. Any forward-looking statement speaks only as of the date on which it was made. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and other periodic reports the Company files with the Securities and Exchange Commission.