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Many Telcos Are Looking To Get Ahead In The Cloud

US operator Verizon has announced that it is to acquire cloud services firm Terremark for a total of $1.4bn. The deal reflects a growing enthusiasm among telcos for cloud offerings, and Verizon claimed its purchase would “decisively reshape the rapidly evolving global business technology solutions market.”

The firm said that the acquisition would accelerate its “everything-as-a-service” cloud strategy, adding that it intends to operate its new unit as a subsidiary, retaining the existing branding and management team.

“Cloud computing continues to fundamentally alter the way enterprises procure, deploy and manage IT resources, and this combination helps create a tipping point for ‘everything-as-a-service,'” said Lowell McAdam, president and chief operating officer of Verizon.  “Our collective vision will foster innovation, enhance business processes and dynamically deliver business intelligence and collaboration services to anyone, anywhere and on any device.

Many large operators are looking to move into the cloud space, hosting a variety of software and infrastructure offerings for enterprise and government clients. But analysts have argued that carriers should be harnessing the cloud for their own benefits. Selling cloud services is “putting the cart before the horse,” according to Camille Mendler, analyst head of enterprise solutions at Informa Telecoms & Media. “Telcos need to clean up and streamline their own operations before using them to sell on these cloud services,” she said.