Service provider will leverage assets to integrate business processes, business intelligence and collaboration services for 'anyone, anywhere and on any device.'
With its acquisition last night of infrastructure-as-a-service (IaaS) vendor Terremark, Verizon will evolve its service stack and become one of the largest hosting and cloud providers in the world, according to Verizon President and COO Lowell McAdam.
- Colocation (space, power and secure environments for enterprise IT equipment;
- Managed services/hosting (security, cloud computing, managed network services, design, deployment, operations, monitoring and management of IT infrastructure for enterprises);
- Exchange point (enable enterprises to connect their networks and equipment flexibly and cost effectively).
Of the three, Verizon’s McAdam expressed during a press conference this morning that the “real growth opportunity” lies with managed services—particularly growing its existing suite of capabilities in the security area.
“We want to accelerate our managed services capabilities without having to build from the ground up in terms of building, outfitting, and employing data centers around the world, not to mention putting in software applications and building a roadmap—none of which is our ‘core competency.’ Better to catapult ahead by acquiring a company like Terremark,” said McAdam, noting Terremark strength in regions like Asia and Latin America, where Verizon wants to increase its footprint.
“The ‘empty map’ in APAC was hurting us, so now we increase our batting average in bidding competitions as global customers can leverage our growth in APAC,” he said. “Now we can better grow our presence into the Fortune 1000 by expanding into regions where Terremark has strong SMB ties and commercial agreements already in place, as well as relationships with key government resources.”
Conversely, Terremark will benefit from the financial and resource muscle Verizon brings to the table, especially in the realm of security (including Verizon’s previously acquired Cybertrust assets, apartnership with McAfee, membership in the Cloud Security Alliance, etc.), and multiple partnerships with companies such as IBM and VMWare.
By leveraging its core assets in network, security and IT, Verizon wants to move toward everything-as-a-service, where business processes, business intelligence and collaboration services will be delivered to “anyone, anywhere and on any device,” according to McAdam, who also said he wants Verizon to go deeper into business application management and embedded on-demand infrastructure.
With the $1.4 billion acquisition (anticipated to be completed in 90 days), Verizon will make Terremark a wholly owned subsidiary that will operate independently, even in collocation deals involving potential competitors. Verizon will retain the Terremark name and Terremark’s current management team.
“We will provide the jet fuel to help Terremark take off in terms of the work they will be able to do to get data centers up around world. They already have an assembled team that knows security, and applications, as well as relationships with governments and enterprise customers; we can kick that into higher gear,” added McAdam.
Terremark offers its EnterpriseCloud IaaS service through 13 data centers in the U.S., Europe and Latin America; Verizon operates more than 220 data centers across 23 countries in its integrated communications and IT solutions, backed by its global IP and mobility networks.
According to Gartner’s Magic Quadrant for Communications Outsourcing and Professional Services, Verizon is one of the leaders (trailing AT&T slightly).
With the deal, Verizon will amp up its efforts in three core areas it already addresses, but which it will now have even more capabilities to leverage:
- Colocation (space, power and secure environments for enterprise IT equipment;
- Managed services/hosting (security, cloud computing, managed network services, design, deployment, operations, monitoring and management of IT infrastructure for enterprises);
- Exchange point (enable enterprises to connect their networks and equipment flexibly and cost effectively).
Of the three, Verizon’s McAdam expressed during a press conference this morning that the “real growth opportunity” lies with managed services—particularly growing its existing suite of capabilities in the security area.
“We want to accelerate our managed services capabilities without having to build from the ground up in terms of building, outfitting, and employing data centers around the world, not to mention putting in software applications and building a roadmap—none of which is our ‘core competency.’ Better to catapult ahead by acquiring a company like Terremark,” said McAdam, noting Terremark strength in regions like Asia and Latin America, where Verizon wants to increase its footprint.
“The ‘empty map’ in APAC was hurting us, so now we increase our batting average in bidding competitions as global customers can leverage our growth in APAC,” he said. “Now we can better grow our presence into the Fortune 1000 by expanding into regions where Terremark has strong SMB ties and commercial agreements already in place, as well as relationships with key government resources.”
Conversely, Terremark will benefit from the financial and resource muscle Verizon brings to the table, especially in the realm of security (including Verizon’s previously acquired Cybertrust assets, apartnership with McAfee, membership in the Cloud Security Alliance, etc.), and multiple partnerships with companies such as IBM and VMWare.
By leveraging its core assets in network, security and IT, Verizon wants to move toward everything-as-a-service, where business processes, business intelligence and collaboration services will be delivered to “anyone, anywhere and on any device,” according to McAdam, who also said he wants Verizon to go deeper into business application management and embedded on-demand infrastructure.
With the $1.4 billion acquisition (anticipated to be completed in 90 days), Verizon will make Terremark a wholly owned subsidiary that will operate independently, even in collocation deals involving potential competitors. Verizon will retain the Terremark name and Terremark’s current management team.
“We will provide the jet fuel to help Terremark take off in terms of the work they will be able to do to get data centers up around world. They already have an assembled team that knows security, and applications, as well as relationships with governments and enterprise customers; we can kick that into higher gear,” added McAdam.
Terremark offers its EnterpriseCloud IaaS service through 13 data centers in the U.S., Europe and Latin America; Verizon operates more than 220 data centers across 23 countries in its integrated communications and IT solutions, backed by its global IP and mobility networks.
According to Gartner’s Magic Quadrant for Communications Outsourcing and Professional Services, Verizon is one of the leaders (trailing AT&T slightly).
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