NTT Communications announced two major international investments: the acquisition of Virtela for US$525 million in cash, and the acquisition of an 80% stake in RagingWire for US$350 million.
Virtela Technology Services (Virtela), which is based in Denver, is a leading global managed and cloud network services provider serving over 500 multinational companies. Virtela integrates 1,000+ local and regional network providers, enabling the customer to build a virtual overlay network from multi-carrier MPLS, Ethernet, DSL, 3G/4G/LTE and other IP links, while benefitting from a single SLA and management portal. Virtela operates global operations and delivery centers in the U.S., India and the Philippines. It has over 400 employees.
NTT Com said it plans to combine Virtela’s advanced service/operational platforms and expertise with its own global ICT infrastructure and resources. NTT Com will also upgrade its cloud-based network services with Virtela’s network function virtualization (NFV) technology to virtualize the functions of customers’ network equipment, such as firewalls and WAN accelerators, enabling enterprises to benefit from 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."
"Virtela’s virtualized network services model combined with NTT Com’s brand and strength will create the industry’s most advanced services portfolio that enables enterprises to break free from the constraints of traditional network architectures and services," said Vab Goel, Virtela founder and general partner at Norwest Venture Partners.
Separately, NTT Communications will acquire approximately 80% equity interest in RagingWire Data Centers (RagingWire), a leading provider of data center services in the United States.
RagingWire has 650,000 square feet of data center space at its campuses in Sacramento, California, and Ashburn, Virginia. Both campuses are currently being expanded. In addition, 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, Virginia with designs to build 1,500,000 square feet of data center space. The company has annual revenues of approximately $85 million (USD), and a compounded annual growth rate of 30%.
NTT Com said the acquisition will more than double its data center space in the U.S.
"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 Akira Arima, CEO of NTT Com.
- In September 2013, RagingWire Data Centers closed on a $230 million credit facility to fund its strategic growth plan and ongoing expansion of its data center campuses in Sacramento, California and Ashburn, Virginia. The funding was led by Bank of America Merrill Lynch, co-led by Comerica Bank, and included eight financial institutions in total. RagingWire noted that its 500,000 square foot data center campus in Sacramento is almost entirely full and plans are underway for an additional facility in the area. In Ashburn, Virginia, the heart of “Data Center Alley,” RagingWire has five data center vaults within a 150,000 square foot facility and plans to build a 1,500,000 square foot campus on 78 acres of land in Ashburn that the company recently acquired.
- In 2012, RagingWire was awarded two patents for data center power delivery systems and technology. These patented technologies include the 2N+2™ design, which offers double the redundancy of a standard data center design at a lower cost. The unique infrastructure, design and operations of 2N+2 has enabled RagingWire to deliver customer SLAs (service level agreements) for 100% availability without any exclusions for maintenance periods or utility disruptions. NTT Com will now begin introducing these advanced technologies throughout its data centers worldwide.
- NTT Communications was among the first Service Providers to implement SDN. The company has a Global Cloud Vision encompassing many of its enterprise services.
- In June 2012, NTT Communications launched a globally seamless enterprise cloud service using OpenFlow network virtualization technology within and between data centers. The service was launched via NTT Com data centers in Japan and Hong Kong, followed by data centers in the United States (two locations), the United Kingdom and Singapore in December and in Australia, Malaysia and Thailand in March 2013.
- OpenFlow is being used for inter-data center back-ups between NTT Communications' Global Data Centers. The service allows bandwidth can be boosted on-demand using the OpenFlow controller.