An increasing number of business critical applications are now delivered over the Internet. As a result, businesses of all sizes are evolving to depend on 24 hours a day, seven days a week, or 24 × 7, connectivity, availability and security of their IT systems.

Data centers built a decade ago were focused on environmental controls and backup systems for utility failures. Modern data centers must be designed and operated at a level approaching 100% of system availability. In addition, multiple, diversely routed connections to separate telecommunications carriers for Internet access are considered a minimum standard.

To achieve this, multiple redundant layers of power, bandwidth and cooling systems are now mandatory. The economic resources and technical expertise required to build facilities of this kind are well beyond the capabilities of a typical small and medium size business.

The requirement for connectivity, availability and security has driven corporations to develop and deploy system architectures that are increasingly complex, creating a sense of urgency and demand for specialized IT infrastructure and data center services. As a result, companies are increasingly working with data center service providers rather than attempting to manage these functions internally.

The Company currently operates three data center facilities in Salt Lake City, Utah which provide a comprehensive spectrum of co-location and hosting services and facilitate a secure, fault-tolerant environment to host and manage equipment and critical data. Data centers are classified in terms of availability by a tiering schedule developed by the Uptime Institute that ranges from Tier I at the low end to Tier IV at the high end.

The Company’s South and West data centers are characterized as Tier IV and Tier III respectively, and are designed for both high-availability and high-density power as well as for server and storage architectures. The Company also has contractual arrangements to resell space in third party data center facilities in Denver, Colorado and Cincinnati, Ohio.

The Company uses industry standard best practices to ensure integration between the servers, applications and networks available to its customers using the following products:

- Managed Server: Provides customers with rapidly deployed brand name servers to host their applications. Dedicated servers can be located within the customer\\\\\\\'s co-location enclosure or the Company’s fully managed environment.

-Managed Firewall: Provides customers with dedicated network security solutions. A properly configured firewall helps protect servers from unauthorized access and attacks.

- Managed Virtual Private Network: Provides customers with a fully managed site-to-site virtual private network allowing them to securely access the data in their co-located servers from their offices.

- Remote System Administration: Includes a wide spectrum of system administration services that address the daily administration activities required to maintain a stable server environment for the clients.

- Asset Tracking Management: Enables customers to manage and track changes to the infrastructure supporting their critical applications.

Cost of revenues of STI increased approximately $14.3 million or 23.5%, from $60.9 million in 2005 to $75.2 million for 2006.

Net loss of STI was $1.9 million for 2005 and $1.7 million for 2006.

Revenues of Consonus Acquisition Corp., or CAC, decreased approximately $1.2 million or 14.5%, from $8.3 million for 2005 to $7.1 million for 2006.

Cost of revenue decreased approximately $0.1 million or 3.6%, from $2.8 million for 2005 to $2.7 million for 2006.

Net income decreased approximately $1.2 million from income of $0.9 million for 2005 to a loss of $0.3 million for 2006.