VMware Invests $20 Million In Terremark Cloud Services - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Cloud // Software as a Service
News
5/27/2009
02:31 PM
Connect Directly
Twitter
RSS
E-Mail
50%
50%

VMware Invests $20 Million In Terremark Cloud Services

The virtualization giant will own 5% of Terremark, which produces cloud and managed IT services for large companies and government agencies.

A sign of VMware's view of the future is on display as it buys a 5% stake in Terremark, a $20 million investment in cloud computing's future. It paid $5 a share for 4 million shares of newly issued common stock.

Terremark's chairman, Manuel Medina, welcomed the move. "VMware is the recognized leader in virtualization and a driving force behind the evolution of cloud computing," he said in an announcement.

Dan Chu, VP of emerging products at VMware, said in the announcement that the two companies have been working together for several years and Terremark was an effective implementer of VMware's products. "This investment ... underscores our belief in their ability to leverage our technologies as part of the VMware vCloud initiative."

VMware announced its vCloud initiative at its VMworld user group meeting in Las Vegas last September. It takes the data center operating system that VMware is seeking to create through its vSphere 4 suite of products and applies additional APIs and services to federate internal cloud resources with external clouds.

Terremark produces cloud and managed IT services through its data centers in the United States, Europe, and Latin America. It reported results for its fourth quarter ended March 31 and for fiscal 2009 on Tuesday. Revenue was $68.9 million, up 5% over the same period the year before. Income from fourth-quarter operations was $10.8 million, a 63% increase over the same period the year before.

Revenue for the year was $250.5 million, a 34% increase over the year before. Gross profit margins were 46% for the year. It delivered record bookings of $31.8 million for the quarter ended March 31, according to CFO Jose Segrera.

Both large companies and government agencies are using its services, Medina said. In February, Terremark announced that the General Services Administration had selected it to power USA.gov, the federal government's official Web portal, and a Spanish-language companion portal. In January, it added "burstmode" for enterprise workloads, giving customers additional power in the cloud as needed. The company had 1,100 customers at the end of its fiscal year.


InformationWeek has published an in-depth report on cloud storage. Download the report here (registration required).

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
Gartner Forecast Sees 7.3% Shrinkage in IT Spending for 2020
Joao-Pierre S. Ruth, Senior Writer,  7/15/2020
Slideshows
10 Ways AI Is Transforming Enterprise Software
Cynthia Harvey, Freelance Journalist, InformationWeek,  7/13/2020
Commentary
IT Career Paths You May Not Have Considered
Lisa Morgan, Freelance Writer,  6/30/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
Slideshows
Flash Poll