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Touch of New England color. #fallinla . . #bmwbostongreen #bostongreen #greenbmw #greenm3 #e36m3 #e36 #greenm3 #m3spotted #m3daily #dailybmw #bmwdaily #bmwgram #radwoodapproved #radwood #bmwm3 #bmwm3e36 #lafall #fallinlosangeles #losangelesfall #fallcolors (at Marina del Rey, California) https://www.instagram.com/p/BpXvLZ8HrQ6/?utm_source=ig_tumblr_share&igshid=15v4pr9l2dlbe

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Verizon to Acquire Terremark... Is it All About the Cloud?

Last Thursday Verizon announced its plans to acquire Terremark in a deal valued at $1.4 billion. Assuming shareholders approve the acquisition Verizon will gain instant viability in the cloud space thanks to Terremark’s existing product capabilities and client base. Industry pundits lauded the move by VZ and surmised it to be a logical extension of their previous relationship with the datacenter operator. In 2007 Verizon began white labeling the Terremark cloud solution, leveraging the fact that both parties utilize VMware’s vCloud platform. Apparently Verizon liked what they saw under the hood.

Upon further consideration however, it may be rash to simply chalk the acquisition up to cloud computing. The price tag alone tells you that more factors must be at play since Equinix only shelled out $689 milliion for Switch and Data, a company with 5x the amount of facilities of Terremark. So what gives? Why is a Tier 1 carrier making such moves? And should we be concerned that an incumbent has more nefarious plans in acquiring a carrier neutral datacenter operator? Remember Terremark owns and operates one of the most strategic interconnect and peering sites in the United States in the NAP of the Americas, Miami. 

Well last Thursday I was enjoying a nice lunch with Dave Ohara from Greenm3.com. Dave received a text from one of his contacts tipping him off to the deal. After we wrapped up lunch and got back to our computers there was confirmation on the news wire. As a result, Dave and I spent several hours discussing the implications of such a combined entity and pinging our contacts to get the inside scoop. Dave graciously offered to summarize the conversation in a post to his blog. If you’ve got a few minutes bop over to greenm3 to check it out.

Meanwhile, we send a hearty congrats to our friends and associates at Terremark. Verizon: you couldn’t get a better group of professionals in Terremark. Good for you. Now, please keep NAP of the Americas carrier neutral. Thank you. That is all.