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Verizon to keep Terremark name for data center business

Carrier has merged its data center operations with Terremark operations acquired earlier this year, will offer a wide suite of cloud and hosting services in nearly 50 data centers worldwide

Less than six months after announcing plans to acquire data center operator Terremark (CP: Verizon bolsters everything-as-a-service cloud strategy with Terremark acquisition), Verizon today announced its plans for that business unit, which include keeping the Terremark name for enterprise-focused cloud and hosting services.

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“This will be an innovative brand around information technology,” said Kerry Bailey, Terremark president, in an interview. Terremark, Bailey said, has a “strong IT-centric brand” and “Verizon has a strong network brand.”

The business, Bailey said, will be “segmented around various verticals.”
By combining the Verizon and Terremark data center businesses, Verizon/ Terremark now will have nearly 50 data centers worldwide. All of them will support the full range of services that combines Verizon’s and Terremark’s previous offerings. These include Verizon’s managed security, risk and compliance and identity access management services, as well as Terremark’s IT and cloud services. The Terremark business unit also will provide IT and security professional services.

Verizon took the opportunity in today’s announcement to highlight key partnerships that will support the Terremark business unit, including partnerships with Accenture, Cisco, EMC, HP, NetApp, SAP and VMware.
Verizon’s MPLS and 3G/4G wireless networks will be critical to the company’s plans for the Terremark business, Bailey said.

“Customers want to make sure they have control over the public and private side,” said Bailey. “They want to put a private cloud up and keep it on the network and they will open up certain applications that can be driven from the public standpoint. The network is everything--and the mobility trend will make the network that much more important.”

To help support cloud offerings, Bailey noted that Verizon has built an application-aware network. He pointed to the example of a customer based in Europe with an SAP application in the cloud. “The network must be aware of that transaction-based application,” said Bailey, “and you have to provision the network to be elastic as well.”

To support the application-aware approach, Bailey said Verizon runs a piece of software that has been planted around the network that recognizes transaction-based traffic and dynamically sets up a secure path between the endpoints with an appropriate priority level.

“The application tells the network, ‘These are the dynamics of this stream—make adjustments along the way so we can keep quality of service up for that specific stream,’” Bailey said.

Telcos have made a run on buying up cloud assets of late, positioning their network/data center capabilities as a key differentiating factor to entice customers into the cloud. See related stories:

CenturyLink to acquire Savvis to boost hosting and cloud service growth

Cavalier eyes cloud services with data center deal

Windstream's Hosted Solution acquisition targets managed services

8x8 hopes Zerigo purchase will help differentiate its cloud hosting offerings

Paetec CEO provides details on data center, cloud service expansion

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© 2014 Penton Media Inc.

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