Carrier that helped invent the idea of cloud now has to buy one

Verizon buys Terremark to figure out how to build flexible, dyamic IT

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That flexibility made it more attractive in many ways than cloud computing companies with more capacity but less ability to tailor it, according to Mark Kelleher, managing director of financial analysis firm Brigantine Advisors told the Wall Street Transcript.

In 2009 virtualization- and cloud-computing software leader VMware bought a five percent stake in Terremark, which uses VMware vCloud software as the basis for much of its cloud infrastructure but also uses hypervisors and cloud-management software from other vendors, Drumgoole said.

For Verizon the acquisition provides a built-in level of credibility and customer base in cloud and the ability to say it hosts not only the software and hardware of the cloud, but the networks linking parts of it together.

Verizon calls the plan, which it intends to pitch as a soup-to-nuts enterprise IT menu of outsourced functions, the "Everything as-a-Service" strategy.

Kevin Fogarty writes about enterprise IT for ITworld. Follow him on Twitter @KevinFogarty.

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