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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


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