BlueStar Communications Founders Launch New Tech Venture; Factory23 Slated to Open World-Class Data Center in Nashville.

Business Editors & Technology Writers

NASHVILLE, Tenn.--(BUSINESS WIRE)--Nov. 28, 2000

BlueStar Communications founders, Scott Kozicki and Fredjoseph Goldner, today announced the launch of their new venture - Factory23. This Nashville-based outsource information technology (IT) provider offers businesses the IT infrastructure and services needed to take advantage of high-speed broadband.

Founded in early 2000, Factory23 (www.factory23.com) is a virtual assembly line of outsourcing IT products designed specifically for small- to medium-sized businesses.

"IT outsourcing is where business and technology are heading," said Kozicki, founder and president of Factory23. "To be competitive, businesses must leverage technology successfully. Our mission is to provide IT resources that allow small- to medium-sized companies to compete on a level playing field with firms that have entire IT departments in-house."

Kozicki said the plans are for Factory23 to become a national resource for companies seeking to outsource their IT.

PARTNERS

Factory23 has teamed with the industry's leading technology companies throughout its entire operation to create a complete IT system, including:

-- EMC, providing memory storage that will initially hold 28 terabytes of data
(28,000 gigabytes)

-- Sun Microsystems, providing the hardware system structure and software
systems

-- Cisco-based network of routers and switches providing highly available
connectivity

-- Oracle, providing the leading enterprise scale database software

DATA CENTER

Factory23's data center will become part of the growing trend in IT outsourcing, which is projected to be a $20 billion industry, according to a recent report by Robert W. Baird analysts.

The 24,000-square-foot data center is scheduled to open Dec. 1 and will be fully operational in early February. The facility will securely house the hardware, software and up to a 30-person staff that is necessary to function as an outsourced IT department for businesses throughout the Southeast.

The unassuming red-brick building will have state-of-the-art security systems to protect the technology inside. To guarantee high uptime, four diesel generators and four UPS systems are in place to provide power indefinitely should the main power grid fail.

"A facility like our data center has to be in a secure building and safe from threats both internal and external to the client," said Mick Ryan, Factory23 infrastructure manager. "We have taken military-grade measures to ensure that our clients don't have to concern themselves with such issues."

PRODUCTS

Factory23's sales force is already contacting small- to medium-sized businesses that are looking for a way to improve their use of technology by "outsourcing IT" - that is, moving their technology hardware into a dedicated, remote facility where the systems can be maintained and upgraded, and the businesses access only the applications they need via the Internet or private networks.

Factory23's product offerings include:

-- Colocation - Factory23 provides a highly secure, accessible

facility for a business to store any of the IT equipment it is

currently using. Colocation allows companies that are either

fully Internet-based or that simply utilize network

applications to take advantage of the highly available,

completely redundant Factory23 installation for 99.99 percent

facility uptime. Businesses that use this service have access

to their equipment and a knowledgeable Factory23 staff 24

hours a day, seven days a week.

-- C3 Netsourcing - Customer Controlled and Configured: This

service allows businesses to outsource the hosting at

Factory23's data center while maintaining control of their

applications and servers. As part of this service, Factory23

takes on the responsibilities of capital expenditures for

hardware and costly software so businesses using this service

will not need to be concerned with the costs of systems

setups. Factory23 provides continual monitoring and immediate

replacement of hardware and data should the need arise.

-- F23 Netsourcing - Factory23 Managed Netsourcing: With F23

Netsourcing Factory23 will build and support a business'

hardware, databases and operating systems while the client

supplies the application. Companies are able to choose from a

variety of platforms for their applications without the

expense of buying and supporting it. This offers total

maintenance and monitoring for a flat fee, instead of the

customer having unpredictable costs and a heavy management

burden.

-- ASP Services - A more full-service product, the ASP service

offers a selection of applications on a subscription basis and

can be used on its own or in addition to one of Factory23's

hosting products. These applications can be reached by a

connection to the Internet from anywhere in the world. With

this service, the client determines its IT needs and Factory23

handles everything else.

"Our whole business is based on helping our clients run their businesses more effectively using technology," said Kozicki. "That's why we have developed partnerships with only the leading technology providers in the market and recruited the industry's finest talent to make it all a reality. `Let us be the technologists so you can focus on your business' is our value proposition."

In the next 18 months, Factory23 is scheduled to open four more data centers in Portland, Ore., Phoenix, Ariz., Kansas City, Kan., and Jacksonville, Fla. Each data center will service six to 10 cities in a geographic area with the Nashville center serving as the operational center of the network.

"We give small- to medium-sized businesses the option to outsource their IT functions, while they concentrate on their core competencies. It's a highly cost-effective way to take advantage of the latest technology without the high startup costs and long implementation period," said Kozicki. "Our data centers are more advanced, more secure and more efficient than anything offered in the markets we are targeting."

Nashville-based Factory23 (www.factory23.com) is a virtual assembly line of outsourcing IT products specifically designed for small to medium-sized businesses. The company's product line includes colocation, dedicated systems, backup and storage and ASP services designed to allow the small and medium enterprise the ability to outsource their technology needs. Factory23 is a privately held company started by BlueStar Communications co-founder Scott Kozicki in early 2000 and employs a 26-person staff.