NTT Strikes Twice, Acquires Virtela and Raging Wire

If there were any doubts about the intentions of the Japanese giant NTT Communications in the North American cloud services market, their moves today should go a long way to dispelling them. NTT announced two purchases today, buying 80% of RagingWire Data Centers and all of the cloud networking operator Virtela.

NTT is spending $350M for its stake in RagingWire, which boasts annual revenues of $85M and a 30% annual growth rate. They have some 650,000 square feet of colocation space in Sacramento and Ashburn in service, which will more than double NTT’s North American footprint. And that’s before RagingWire’s additional 150,000 square feet under construction in Sacramento and plans to develop a 78 acre plot in Ashburn with room for as much as 1.5M square feet.

The price tag for Denver-based Virtela is $525M, and NTT will be combining the managed service’s operator’s platform with its own global ICT infrastructure. Virtela has both a complementary product set and a multinational customer list that will further boost NTT’s cloud services against the likes of Verizon and Orange in the global arena.

Put them both together and this seems to be a significant move by NTT to add some North American muscle to their global cloud ambitions, both at the infrastructure and services levels.

Across the Atlantic, NTT’s Integralis division also rebranded itself as NTT Com Security AG today.  NTT acquired Integralis a few years back, and has turned it into its dedicated network security division.

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Categories: Cloud Computing · Datacenter · Managed Services · Mergers and Acquisitions