Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of James Brean - Thomas Weisel Partners.
James Brean - Thomas Weisel Partners
Jim just wanted sort to ask you. You have been in the Company for a couple of years now, can you talk about some of the trends that you have used to business in that time certainly you guys have focused on the datacenter space that has been where a lot of growth is coming from. This is sort of you and your experience, what business lines seem to be the part of this growing, this is the most and the part that investors should be focusing on?
Jim DeBlasio
Sure James. But first of all, our datacenter business is the part of the business that is growing fastest of our three lines of business and we see some significant growth there and we are meeting that growth by adding new capacity, and as I mentioned earlier, we put about 60,000 square feet of capacity implied to meet that need, and along with that with our datacenter space we have in a tax rate of IP that goes along with datacenters in the high 90s and it is 96%. Every dollar of datacenters that we sell, we sell IP along with it and now what we are doing in the bundled offered is trying to add CDN along with that to the total bundled offer that we have and as George mentioned in his remarks that bundled offer percentage has also gone up in the recent quarter to the total package that we offer on our customers.
So, we are leading with Colo and we are using it as a way to drive a high performance IP and a high performance CDN.
James Brean - Thomas Weisel Partners
Since the time you have been there as you guys have certainly refocused on the datacenter space and grown that part of the business, is it significantly helps you from a churn perspective with the customers?
Jim DeBlasio
Well, since from the time I got here James, the test at hand initially was to turn around the Company and to provide a cost basis that would allow us to sell competitively and make money as we are selling. So, the test at hand was to improve the margins, to drive costs out, to get our costs low both in Colo, to drive higher margins in Colo and to drive higher margins in IP so that we could do some forward pricing in IP with reliability. Give our customers the services that they needed in IP and also do with reliability we renew and doing so we are making money as a company and now as George mentioned we are in a solid financial footing so that we are able to do that.
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