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Verizon Communications took its cloud computing momentum one step further on Thursday, agreeing to acquire cloud computing Infrastructure-as-a-Service provider Terremark Worldwide for a whopping $1.4 billion.
Under the terms of the deal, Miami-based Terremark will operate as a wholly owned subsidiary of New York-based Verizon and keep the Terremark name, Verizon said. Terremark's management team will remain in place.
Scooping up Terremark fits squarely in Verizon's much-touted "everything-as-a-service" cloud computing strategy where the service provider seeks to offer a full portfolio of on-demand cloud computing services to businesses and governments through a unified IT platform.
"Cloud computing continues to fundamentally alter the way enterprises procure, deploy and manage IT resources, and this combination helps create a tipping point for 'everything-as-a-service,'" Lowell McAdam, president and chief operating officer of Verizon, said in a statement. "Our collective vision will foster innovation, enhance business processes and dynamically deliver business intelligence and collaboration services to anyone, anywhere and on any device."
Manuel D. Medina, chairman and CEO of Terremark, added: "This agreement represents an exciting opportunity to accelerate our strategy and serve our enterprise and government customers with even greater innovation on a global scale with Verizon's resources and extensive reach. We will continue to work with leading hardware, software, systems integrator and carrier partners to build on our unique business model."
Terremark has been one of the best performing cloud computing provider stocks recently with investors driving its value up by a whopping 129 percent from Nov. 27, 2009 to Jan. 19, 2011. The company boasts 13 data centers in the U.S., Europe and Latin America to offer cloud computing, hybrid cloud, collocation, disaster recovery, data storage and managed hosting services. Terremark's Enterprise Cloud platform offers on-demand access to secure computing resources.
Terremark's data centers will be added to the more than 220 data centers Verizon operates across 23 countries. Over the past year, Verizon has hammered home its "everything-as-a-service" vision, launching a host of cloud computing services including its Computing-as-a-Service (CaaS), a cloud storage service, cloud security services and an SMB version of CaaS.
In a recent interview with CRN, Verizon Business' manager of cloud services, Patrick Verhoeven, said Verizon has "doubled down on the cloud" and will continue to do so in 2011.