Verizon (NYSE:VZ, news, filings) is still tweaking its cloud services lineup following the purchase and integration of the Terremark assets earlier this year. Yesterday they announced a small M&A, purchasing CloudSwitch, a privately held cloud software company. Terms of the deal were not disclosed, meaning that the numbers aren’t material relative to Verizon’s size – no surprise there.
The deal is strictly about adding capabillities to Verizon’s cloud portfolio by buying rather than trying to build everything. CloudSwitch, as it names suggests, specializes in enabling enterprises to move applications between company data centers and the cloud smoothly. That reduces the number and height of hurdles an enterprise faces in moving to a cloud-based architecture, which Verizon hopes to use to help it ramp up services quickly.
Verizon Business, like many large telcos, is betting on offering managed services via the cloud as a means to rejuvenate its growth potential. Their purchase of Terremark surprised the sector, and helped kick off a wave of related M&A activity as large telecommunications companies worldwide have jockeyed for position. Verizon surely *could* have just licensed the technology, but by bringing it in-house they also take it off the table for the competition.
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