Verizon Buying Chunk of the Cloud
Service providers (who used to just be called carriers) now have a tougher deal. There is competition everywhere -- much of it from industry deregulation and new companies free from the constraints of the past.
One advantage the older carriers have is deep pockets -- cash collected by their monopolies were protected by law (remember how expensive plain old phone service used to be?).
Verizon is using a chunk of that substantial change to buy a piece of the cloud. In this case, it snapped up managed services and cloud hosting concern Terremark for a cool $1.4 billion.
But Terremark won't be going away. The brand will remain, and Terremark will be a wholly-owned subsidiary.
While the cloud may be relatively new, Terremark isn't -- it was founded in 1990.
Posted by Doug Barney on 02/08/2011 at 12:47 PM