NTT Com to buy cloud networking provider Virtela, invest in RagingWire

NTT Communications Corp. today upgraded its cloud service capabilities through a pair of transactions. The Japan-based global service provider says it has reached an agreement to buy Virtela Technology Services Inc., a global managed and cloud network services company, for approximately $525 million in cash. The carrier also says it will acquire an 80% stake in RagingWire Data Centers for $350 million.

NTT Communications Corp. today upgraded its cloud service capabilities through a pair of transactions. The Japan-based global service provider says it has reached an agreement to buy Virtela Technology Services Inc., a global managed and cloud network services company, for approximately $525 million in cash. The carrier also says it will acquire an 80% stake in RagingWire Data Centers for $350 million.

Denver-based Virtela boasts global operations and delivery centers in the U.S., India, and the Philippines, and serves more than 500 customers worldwide, NTT says. Using Virtela’s flexible service activation and advanced management infrastructure will enhance NTT Com’s broadband network services in nearly every country of the world, NTT Com asserts. The acquisition also will expand NTT Com’s global network services coverage from 160 to more than 190 countries/regions.

NTT Com also expects to improve its cloud-based network services with Virtela’s network function virtualization (NFV) technology, which will enable instant service activation and significant cost reduction.

“Virtela is well known for its strong technology, networking expertise, global reach, and highly regarded services,” said Akira Arima, CEO of NTT Com. “As we advance our Global Cloud Vision, we expect to continue offering enterprise customers the highest possible value in services ranging from branch office networking to large-scale cloud migration.”

Meanwhile, the deal with RagingWire will more than double NTT Com’s data center space in the U.S. The company has 650,000 square feet of data center space at its campuses in Sacramento, CA, and Ashburn, VA. Both campuses are currently being expanded. RagingWire has begun construction of a new 150,000 square foot data center in Sacramento and will soon break ground on a 78 acre parcel of land in Ashburn with the goal to build 1,500,000 square feet of data center space.

RagingWire also owns two patents for data center power delivery systems and technology. One covers the company’s 2N+2TM design, which offers double the redundancy of a standard data center design at a lower cost, NTT Com asserts. The 2N+2 approach has enabled RagingWire to deliver customer service level agreements (SLAs) for 100% availability without any exclusions for maintenance periods or utility disruptions, NTT Com adds. NTT Com plans to deploy the concept in its data centers worldwide.

"We are rapidly expanding our capabilities to provide cloud and telecommunications solutions worldwide and the deal with RagingWire is critical to increasing our overall capacity, providing data center infrastructure management tools which enhance colocation service’s reliability and efficiency. RagingWire leads the data center industry in availability, innovation, and customer experience, and that will enhance our global cloud solutions significantly,” said Arima.

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