NTT expands data center, cloud to US with acquisition

The acqusition of Virtela will double NTT's data center space in the US

Japanese NTT Communications has acquired Virtela Technology Services and a majority stake in RagingWire Data Centers as part of its worldwide data center and cloud push.

Telecom operators all over the world are doing are doing their best to compete with the likes of Amazon Web Services for enterprise spending on hosted services and data center capacity, and NTT is no different.

It has acquired about 80 percent RagingWire for US$350 million. The acquisition will more than double NTT Com's data center space in the U.S., enabling the company to respond to what it said is a high demand for data center services in North America.

RagingWire has 650,000 square feet of data center space at its campuses in Sacramento, California, and Ashburn, Virginia, which are currently being expanded. The company has also begun the construction of a 150,000 square foot data center in Sacramento, and will soon break ground on a 78-acre plot of land in Ashburn. RagingWire has also developed technology to offer more cost-effective data center redundancy, NTT said.

RagingWire's founders and management team will continue to operate the company under the RagingWire brand and maintain a minority interest.

The U.S. market for data center services -- which accounts for more than 50 percent of global demand -- has roughly doubled between 2010 and 2013, according to NTT.

NTT has also agreed to acquire all of Virtela for about $525 million in cash in order to get its hands on the Denver-based company's infrastructure and services. The company offers services to improve the response times of hosted applications. It also has a large portfolio of cloud-based security services as well as network virtualization expertise.

The deal expands NTT's global network services coverage from 160 to more than 190 countries or regions, and combined services will arrive next year.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsbusiness issuesNTT Communications

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?