Sunday, January 12, 2014

NTT Com's Virtela Acquisition Builds WAN Virtualization Capabilities and Client Base

NTT Communications completed its previously announced acquisition of Virtela Technology Services Incorporated (Virtela), a leading global managed and cloud-based network services company.

"Leveraging advanced virtualization technologies, such as Network Functions Virtualization (NFV), features such as firewall, WAN acceleration and SSL remote access will be delivered from network cloud. Furthermore, these features are automated for on-demand activation and configuration, helping enterprises save capital and operating expenses. These features are planned to be available to NTT Com customers starting Q2 2014," said Akira Arima, CEO of NTT Com.

http://www.ntt.co.jp

In October 2013, 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.

Verizon Introduces Per-Hour Billing for Oracle Database

Verizon Enterprise Solutions announced an hourly billing option for accessing Oracle Database and Oracle Fusion Middleware on the Verizon cloud infrastructure.  Customers can bring their own Oracle licenses to the Verizon platform or purchase Verizon cloud services, which already include Oracle licenses. Current Verizon eCloud and Managed Hosting customers can also be able to use Oracle software on a per-hour cost basis and can leverage existing Oracle licenses.

"This deal represents two market leaders coming together to create a compelling cloud offering that will help enterprises succeed in a highly competitive market environment," said Oracle President Mark Hurd. "Combining Verizon's unique enterprise experience and capabilities with Oracle's best-in-class cloud products will provide customers another easy and cost-effective choice for embracing the cloud."

"With Oracle, we're helping enterprises transform their operations with the cloud," said John Stratton, president, Verizon Enterprise Solutions. "Few companies begin with a complete cloud environment, and the benefits of migrating to the cloud have at times been outweighed by the challenges and costs associated with making a change. Oracle and Verizon have now removed those obstacles. Companies can use their existing Oracle licenses or pay as they go for Oracle's software and gain the power of Verizon's next-generation enterprise cloud."

Verizon Cloud, announced in October 2013 and currently in beta, provides clients with performance, flexibility and control in their cloud environment. This agreement with Oracle demonstrates Verizon's commitment to building an ecosystem of enterprise-class technologies, delivered as services on top of Verizon Cloud.

http://www.verizonenterprise.com/
http://www.oracle.com

Schneider Electric to Acquire AST Modular for Prefab Data Center Modules

Schneider Electric agreed to acquire AST Modular, which supplies pre-fabricated data center modules.  Financial terms were not disclosed.

AST Modular, which is based in Barcelona, Spain, has executed over 450 data center projects worldwide.  The company is considered an innovator in the prefabricated data center space. Expansions to AST Modular’s portfolio have included non-ISO modules, multi-module designs, and modular data center rooms, as well as a broad portfolio of cooling options optimized for the prefabricated IT space.

"It has always been AST Modular´s goal to offer the best and most innovative prefabricated data centers. Schneider Electric´s global presence, world class power, cooling and Data Center Infrastructure Management solutions, backed up by an excellent service network, will be a major benefit for our customers," said Henry Daunert, CEO of AST Modular.

"AST Modular’s capabilities and experience complement Schneider Electric’s strategy to provide global prefabricated solutions and support to meet customer demands in this fast growing segment” said Kevin Brown, Vice President, Data Center Global Offer and Strategy, Schneider Electric.  “The acquisition of AST Modular strengthens our regional capabilities in Latin America, Europe, Middle East, and Africa, with factories and custom engineering staff located in Barcelona, Spain and Miami, Florida. We look forward to expanding our library of reference designs and integrating AST Modular’s solutions into our portfolio to create the most comprehensive offer in the industry."

http://www.schneider‑electric.com
http://www.astmodular.com

Telstra Sells Majority Stake in Directories Business for US$408 Million

Telstra will sell a 70% stake in its directories business, Sensis to Platinum Equity for A$454 million (US$408 million).

The sale excludes the voice services business and includes economic benefits to Telstra from services it will continue to provide to Sensis. Telstra will retain a 30% shareholding with Sensis now valued at A$649 million.

Telstra said the transaction price is equal to a multiple of 2.4 times Sensis’ FY14 forecast EBITDA after adjusting for the voice directories business (which is being retained by Telstra) and stand alone costs of operating the business.

US-based Platinum Equity is a leading global private equity firm.  Its 2013 transactions included carve outs from AP Moeller Maersk, CBS, CheckPoint Systems, Emerson and Deutsche Post DHL.

“We have spent the last two years enhancing our print directories business with a rich set of digital directory offerings. Sensis is now the leading digital marketing services and directories business in Australia. To drive further momentum, we believe it is the appropriate time to introduce Platinum Equity, as a strategic partner,” said David Thodey, CEO of Telstra.

http://www.telstra.com

SAP Reports 130% Annual Growth in its Cloud Services

SAP delivered strong revenue growth in 2013. Full year non-IFRS software and cloud subscription revenue increased 10% at constant currencies (5% at actual currencies to €5.3 billion). Non-IFRS software and software-related service revenue grew 11% at constant currencies (6% at actual currencies to €14.0 billion). Non-IFRS total revenue grew 8% at constant currencies (4% at actual currencies to €16.9 billion).

SAP said it is successfully managing the transition to a cloud-based industry.  SAP's annual cloud revenue run rate now exceeds €1.06 billion . The company also exceeded its full year 2013 guidance of €750 million (2012: €343 million) in non-IFRS cloud subscription and support revenue at constant currencies.

SAP HANA, the platform for real-time business applications, was a major growth engine in 2013. Full year 2013 HANA software revenue increased 69% at constant currencies to €664 million (61% at actual currencies to €633 million compared to guidance range of €650 – €700 million).  The company cited strong customer interest in SAP Business Suite powered by SAP HANA as well as SAP HANA Enterprise Cloud.

"Four years of double-digit growth clearly shows that our customer-focused innovation strategy is winning. We are one of the few global tech companies that has successfully managed the transition to the cloud while growing our core business and improving our profitability at the same time," said Bill McDermott and Jim Hagemann Snabe, Co-CEOs of SAP.

"With the strong momentum of our industry leading HANA platform and SAP Cloud we bring simplicity to our customers and help them innovate faster." "SAP invested significantly in innovation and successfully scaled its cloud business while maintaining operational discipline and reaching our 2013 operating profit outlook," said Werner Brandt, CFO of SAP.

"SAP expanded its non-IFRS operating margin by 140 basis points at constant currencies driven by operational excellence despite the margin impact from acquisitions and our momentum in the cloud."

http://global.sap.com/corporate-en/news.epx?category=ALL&articleID=22115&searchmode=C&page=1&pageSize=10

See also