Terremark Worldwide isn't afraid to NAP on the job. The company provides colocation, exchange point, and managed IT infrastructure services from several network access point (NAP) locations. It also leases data center space in Europe and Latin America. Terremark markets to telecom carriers, interactive entertainment providers, and other businesses. In addition to its commercial customers, the company counts agencies of the US federal government among its clients. The company was acquired in 2011 for $1.4 billion by Verizon Communications, which is investing in the hosted Web services for corporations offered by Verizon Business.
While the company's revenues have steadily risen over the years, it still operated in the red up until it was acquired by Verizon, partly due to investments it had made in the expansion and upgrade of its infrastructure to support growing demand for outsourced computing services. Prior to its purchase, Terremark had a relationship with Verizon, providing colocation and other cloud computing-related services.
After the acquisition that year, Verizon bought enterprise cloud facilitator CloudSwitch with plans to integrate it with Terremark. CloudSwitch provided software that simplifies a business' interaction with cloud services by bypassing the need for re-architecting and by maintaining a high level of control and data center integration and security.
In 2010 Terremark built a third data center in the Washington D.C. area as part of its effort to sign up more federal clients, particularly civilian agencies, for cloud computing services. The US federal government accounted for about a quarter of Terremark's revenues that year.
Managed services and colocation together account for most of the company's revenues, and Terremark's growth strategy includes cross-selling services to its existing managed service and colocation customers. Its partnerships with government IT contractors General Dynamics and Computer Sciences Corp contribute to this.
Terremark does the majority of its business in the US, however, it also operates nearly 10 data centers in Europe and Latin America. The company added a data center in Amsterdam in 2011, and secured airport operator Schiphol as its first customer there.
Terremark bought data management service provider DS3 DataVaulting for $12 million in 2009. DS3 provided offsite and online data backup and restore services to corporations and government clients. The acquisition helped to eliminate the company's need to outsource some of its data storage services.
Chairman, CEO, and president Manuel D. Medina, who founded Terremark in 1982 and held a minority ownership stake in the business, stepped down in 2011 after it was acquired by Verizon. Kerry Bailey, head of Verizon's enterprise cloud computing strategy and services, took over as head of Terremark. – less