First I'd like to thank you all for your support and your business. As many of you know, I began relocating our company to Miami Florida in May 2009. I'd like to take a moment to tell you why.

In October 2008, we entered into a strategic partnership with another company that involved selling services out of a datacenter in downtown Miami. During the course of business, I became acquainted with the manager of the facility. He suggested that perhaps one day we could establish a presence in this facility. Knowing that it would mean essentially packing up shop and moving completely into Miami, I told him no initially - that would surely never happen.

As time went on, however, it continued to weigh on me how much better the experience would be for our customers if we were located in Miami. That particular facility adds the ability to reach four more Tier 1 carriers (Savvis, Sprint, GBLX and Verio) than we could reach at our JAX facility. It would allow us to do business with more of the Tier 2's like XO, HE, WBS, Mzima, WVfiber, PCCW/BTN, and others. It would provide direct peering with several Latin American networks, thus increasing our customer footprint. It would provide for more direct routing since we'd be directly attached to routers in a Tier 1 city, rather than being backhauled from Jacksonville to another city before hitting a router.

I felt obligated to follow this opportunity up and see where it would lead. I did my diligence, making a trip down to Miami in December 2008 for the purpose of meeting with an executive in the company whose space we now colocate in. We discussed various aspects of the deal for nearly three hours, and we both left with a good feeling about it. We continued to refine the terms of our agreement over the coming months to our mutual satisfaction.

My personal preference is to be in Jacksonville - I've lived there all my life and have family there. But I knew Jacksonville would not sustain the long-term viability of my business. The lack of competition among facilities in Jacksonville meant monopolistic price controls, which would be hard to overcome. 10 Gigabit Ethernet is the new currency among carriers, and Jacksonville lacks 10GE availability. I knew that Miami was the closest city where I would have everything I need to continue running a successful business.

In April 2009 I signed the agreement for space in Miami and set into motion my plan to move my business. I kept this quiet from everyone except the people who were actively involved in planning and executing the move, as it's been my experience that people tend to do really foolish things when you tell them you're leaving. Unfortunately I got to experience some of that first-hand after the fact.

Regrettably, the enormous magnitude of the move was difficult to fully anticipate. It took longer than we had originally intended, and we sincerely apologize to our customers for this delay. We had minor setbacks, like VPS customers being without service for a few days. Not surprisingly, a few of our competitors came out of the woodwork to do nothing more than throw stones. I say that's not surprising, because people tend to become jealous when they see you making forward progress while they're standing still. Make no mistake, despite what anyone might say, there are no negative aspects of this move for our customers going forward. They've seen an immediate improvement in routing, and we saw an immediate improvement in our costs of doing business.

The benefits of this move are plentiful and will continue to multiply with time. We will implement a better tracking mechanism for support requests. We'll roll out billing automation and our customer portal, and we'll take on a new name that is more conducive to selling services out of other markets besides Jacksonville, as we've continued to do since the inception of our company in 2005.

If anyone has an unresolved issue, ongoing or otherwise, I'd like to address it directly. Feel free to contact me via email at rrb@colo4jax.com. Thanks again to our friends and customers; we could not have done this without you!

Sincerely,

Ray Barnes
Managing Member
colo4jax LLC