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NTT Com Beefs Up Network, Tech Expertise with RagingWire, Virtela Buys

By Paula Bernier October 28, 2013

NTT Communications Corp. today delivered a one-two punch in the area of acquisitions, announcing plans to acquire Virtela Technology Services for $525 million in cash, and 80 percent of RagingWire for $350 million.

Virtela is a cloud-based service provider that leverages network functions virtualization and software-defined networking, two areas in which NTT has shown a keen interest. Virtual brings to the table more than 500 customers, including many of the world’s largest multinational companies; operations in the U.S., India, and the Philippines; and 400 employees.

NTT Com says it will upgrade its cloud-based network services with Virtela’s NFV technology to virtualize such functions as firewalls and WAN accelerators in an effort to save its enterprise customers money and expedite their service activation. Combining the companies’ assets, NTT Com says, creates an unparalleled company able to deliver cloud networking services, asset-light branch office networking, a Tier-1 IP backbone and end-to-end cloud compute, storage and network services on a global scale.

As for the RagingWire deal, it will enable NTT Com to more than double its data center space in the U.S. The acquired also offers NTT Com technological expertise and patents related to efficient data center design and operation.

RagingWire has $85 million in annual revenues, approximately 300 employees, and 650,000 square feet (and growing) in data center space at its campuses in Sacramento, CA, and Ashburn, VA. The 20 percent of RagingWire not purchased by NTT Com will be held by the company’s founders and management team.

"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 a colocation service’s reliability and efficiency,” said Akira Arima, CEO of NTT Com. “RagingWire leads the data center industry in availability, innovation, and customer experience, and that will enhance our global cloud solutions significantly.”

Edited by Rory J. Thompson

Executive Editor, TMC

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