I also heard this from several people in the investment industry.
Speculation around hostingcon is that they will be combined and positioned for an IPO - but that softlayer will be the lead on it since they are growing and theplanet apparently from what I have heard from multiple sources is not for all practical purposes.
I agree, less competition between this two monster.
Sucks for more reasons than that. ThePlanet was one of the first huge dedi companies, and they've never been on the same level as Softlayer, exactly why Lance et al branched out to start it. They never truly competed; monthlies with Softlayer are going to run you 10-50% more, and they have a far better service reputation.
No, 100TB will certainly not be affected, nor will it be "just fine because both are great companies". Even if that was true and they were on the same service level, it's probably going to involve some frustration for a lot of customers. I'd imagine those hosted at SL are going to come out worse in all this.
Edit: tl;dr =
Originally Posted by Creed3020
I am certainly not too excited about this, I hope this doesn't cause SL to get dragged down into the pit that is TP.
GI partners absolutely bought a controlling interest in them.
GI partners also absolutely owns theplanet.
I have talked to many people in the last 3 hours that are very close to the situation and its true.
What I dont know is if they will merge the 2. However the popular speculation is that they will and that Lance will run it.
My questions are going to be:
1. What panel will they go to or will they leave it as 2 seperate panels that are running the different systems?
2. will this settle litigation between the companies?
3. What is their plan to solve the projected cash flow failure down the road according to S&P analysis - IPO to replace part of the debt?
4 will there be staffing changes and reorganizations and how will that go if they do?
Will prices go up now that they are controlled by the same group - thus bringing a lower level of competition?
All in all I would say its good for other providers for sure - we are excited about it quite frankly for obvious reasons. If they merge them they are going to be the largest by a good bit in that market space - and really on a different level.