Verizon To Buy Terremark For $1.4 Billion - InformationWeek

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1/28/2011
01:17 PM
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Verizon To Buy Terremark For $1.4 Billion

With the acquisition of the supplier of secure and government-oriented cloud services, Verizon is repositioning itself as a broad technology supplier.

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Verizon also lined up early behind VMware, offering server provisioning and management that was compatible with VMware's ESX Server hypervisor and virtual machines. That simplifies the task of IT managers trying to send workloads into the cloud, when they already have VMware virtual machine monitoring systems. Another telecommunications supplier, AT&T, is following a similar route with its Synaptic Compute Cloud.

By adopting VMware's vCloud Datacenter management systems, Verizon offers enterprise customers the chance to engage in cloud computing "using the same VMware technology as they do in their own data centers," said VMware's Paul Maritz in a joint announcement with Verizon last August.

VMware compatibility "allows us to go after hybrid cloud use cases," said Vanhoeven in the interview. The term hybrid cloud is used to indicate a public cloud supplying services that work in close conjunction with a private data center with workloads sometimes shifted between the two for maximum efficiency.

A VMware user in the enterprise may also send a VMware workload to Amazon's EC2, but that is a relatively recent development. On Dec. 16, AWS announced that EC2 has a tool that recognizes VMware virtual machines. EC2's preferred VM format is its own Amazon Machine Images, a variation of open source Xen.

Verizon's acquisition of Terremark, along with these developments, are indicators of how quickly cloud computing is becoming an extension of enterprise data centers and used for hosting some workloads that IT managers decide to offload there.

Vanhoeven said Verizon will move beyond infrastructure as a service, the equivalent of the AWS EC2 cloud, into platform as a service, where extensive tools and components are offered to cloud users in connection with their applications, and software as a service.

"There is no single cloud model that is going to prevail," he said, summing up Verizon's view. "To be successful, you need to offer a continuum of capabilities."

Verizon maintains cloud data centers in Amsterdam, Hong Kong, and Beltsville, Md. Additional cloud data center capacity will be added by the end of the first quarter of 2011 in London, Canberra, and San Jose, Calif. Two additional data centers will come on line in Culpepper, Va., and Miami by the end of the first quarter to supply cloud services to the U.S. government.

As a telecom provider, Verizon manages 200 data centers worldwide, with the bulk of them dedicated to its network and telecommunications traffic, hosted services, and co-location services.

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