Market Overview

Vapor IO Raises Series C Financing to Deploy Kinetic Edge Data Centers in Every Major US Metro Area

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Over 100 edge locations planned by 2020; Vapor IO on track to be the
largest provider of interconnected edge data center facilities,
coast-to-coast

Vapor
IO
, developers of the first fully-integrated hardware and software
solutions for edge computing, today announced a Series C funding round
led by private equity firm Berkshire Partners, with participation from
current investor Crown Castle. The new investment will be used to
officially launch the company's groundbreaking Kinetic
Edge
colocation and interconnection services, while rapidly
expanding its footprint of edge data centers.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180905005297/en/

http://www.vapor.io

http://www.vapor.io

The Kinetic Edge platform offers a new category of colocation built
around infrastructure-side edge computing at the intersection of the
wireless and wireline networks. By deploying micro data centers at the
base of cell towers and in nearby wireless aggregation hubs, Vapor IO
expects to be the largest provider of edge data center colocation
services integrated directly into the wireless infrastructure.

"As the concept of edge computing has gone from niche technology to
mainstream trend, we have methodically laid the foundation for
infrastructure-side edge computing," said Cole Crawford, founder and CEO
of Vapor IO. "Vapor IO is building the largest footprint of
interconnected edge data centers and we are rolling out at an
accelerated pace. We're thrilled to welcome Berkshire Partners as a lead
investor and to have the continued support of Crown Castle. This will
help establish Vapor IO's leadership in the market and offer
unprecedented value and performance to our customers."

The Kinetic Edge

Vapor IO's Kinetic Edge enables carriers, cloud providers, CDNs, web
scale companies and other innovative enterprises to place IT equipment
(compute, storage, and networking) in Kinetic Edge locations—one hop
from the existing 4G LTE and emerging 5G wireless networks.

"Vapor IO is a leader in edge computing," said Beth Hoffman, a managing
director at Berkshire Partners. "With premier technology, increasing
mobile edge demand and a large market opportunity, Vapor IO is poised
for impressive growth. We look forward to partnering with the company's
exceptional management team to deliver scalable mobile edge
infrastructure and to having the opportunity to work alongside Crown
Castle again."

Vapor IO's Kinetic Edge architecture will create city-sized logical data
centers using high-speed fiber and both open and proprietary software.
By combining multiple micro data centers, the Kinetic Edge can offer
infrastructure that positions compute and storage extremely close to
users while also spanning a geographic region. With Kinetic Edge, Vapor
IO is first-to-market with a comprehensive package of edge colocation,
interconnection and networking services.

Vapor IO will leverage its partnership with Crown Castle, as well as
utilize its award-winning technologies—the Vapor
Chamber
, Vapor
Edge Module
and the Synse
open source telemetry system—to build and operate the nation's largest
network of edge data centers.

Colocation on the Kinetic Edge

Vapor IO's primary offering will be providing Kinetic Edge product
bundles that include:

  • Colocation: With rollout plans that include all major US
    cities, Vapor IO will offer customers edge computing colocation
    services that extends to all major metropolitan regions. Multiple
    sites in any one Kinetic Edge city can be treated as a single, logical
    data center than spans the entire metropolitan region.
  • Interconnection: Edge meet-me rooms and interconnection
    services provide high-speed access to last-mile networks, regional
    data centers, metropolitan aggregation points and peering centers, as
    well as public cloud and private data centers.
  • Software-Defined Networking: Using the web-based Vapor Edge
    Portal or secure APIs, Vapor IO customers can configure virtual
    private networks to create their own unique edge computing topology
    including Kinetic Edge data centers as well as private and colocation
    facilities—making it possible to treat all of a customer's IT
    equipment in a region as if it were all in the same building.
  • Highly-Secure Lights Out Multi-Tenant Facilities: The Kinetic
    Edge utilizes Vapor IO's patent-protected enclosure systems, which
    include the Vapor Chamber and the Vapor Edge Module. Vapor IO's
    Kinetic Edge is designed with multiple layers of physical and logical
    isolation to provide customers with a highly secure environment for
    their equipment.
  • Remote Operation and APIs: Vapor IO's data centers at the
    Kinetic Edge are designed for remote operation via the web-based Vapor
    Edge Portal as well as via APIs provided by Vapor IO, including those
    offered by the Synse open source telemetry system running in each
    location.

Rollout Plans

Vapor IO has deployed multiple Kinetic Edge data centers in Chicago, IL
with plans to have 13 sites underway by the end of 2018, nearly 50 by
the end of 2019 and over 100 by the end of 2020, providing
coast-to-coast coverage. Specific cities and more detailed rollout plans
will be announced later this year.

Continued Partnership with Crown Castle

Vapor IO has expanded its partnership with Crown Castle, the nation's
largest provider of communications infrastructure. The partner-driven
edge colocation business that originally operated under the code name
"Project Volutus" will now be offered commercially under the Vapor IO
Kinetic Edge brand, but will continue to leverage Crown Castle's assets,
including its tower real estate and metro fiber.

"The exponential growth in mobile data and the development of new
applications that require high speed data networks with low latency make
this an exciting time to be in the shared communications infrastructure
business," said Phil Kelley, senior vice president of Corporate
Development and Strategy for Crown Castle. "Vapor IO is a leader in edge
computing and their solution provides edge colocation with the most
dense compute per square foot, which optimizes the use of the valuable
land under our towers. When you combine our distributed real estate and
high capacity fiber connectivity with Vapor IO's capabilities, Crown
Castle is uniquely positioned to enable edge computing."

Notes

J.P. Morgan Securities LLC was retained by Vapor IO as an adviser on the
transaction.

Resources

About Vapor IO

Vapor IO is developing the largest nationwide edge colocation and
interconnection platform at the edge of the wireless network. Serving
the world's largest wireless carriers, cloud providers, web-scale
companies and other innovative enterprises, the company's Kinetic Edge
combines multi-tenant colocation with software-defined interconnection
and high-speed networking. The Kinetic Edge delivers the most flexible,
highly-distributed edge infrastructure at the edge of the wireless
network. The company has deployed its Kinetic Edge in Chicago, IL and
has plans to have projects underway in the top 20 markets with 100+
sites by 2020.

About Berkshire Partners

Berkshire Partners, a Boston-based investment firm, has raised nine
private equity funds with more than $16 billion in aggregate capital and
has made over 125 investments in primarily middle market companies since
its founding in 1986. The firm is currently investing Berkshire Fund IX,
a $5.5 billion fund raised in 2016. The firm seeks to invest $50 million
to $500 million of capital in each portfolio company. Berkshire has
developed specific industry experience in several areas including
consumer products and retail, communications, business services,
industrials and healthcare. Berkshire has a strong history of partnering
with management teams to grow the companies in which it invests with the
goal of consistently achieving superior investment returns. Previous
investments in the communications sector have included Crown Castle,
Telx and Lightower. For additional information, visit www.berkshirepartners.com.

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