Verizon to Sell Data Centers and Reverse Hosting and Colocation Services Expansion
January 7, 2016
A report by the Reuters press agency has suggested Verizon is set to sell its data centers and reverse its policy of hosting and colocation services expansion. Verizon, which has headquarters in Bedminster, New Jersey, United States, was founded in 2000. The company is predominantly a telecommunications provider (including landlines and enterprise services) and the largest wireless telecommunications provider in the United States. However, the company purchased Terremark Worldwide Inc at a cost of $1.4 billion and ventured in to the realm of hosting and colocation in 2011.
While its “collocation” activity generates around $275 million annually, the sale of Verizon’s data centers is expected to generate the company around $2.5 billion. Jettisoning the centers will also enable it to focus on its core competencies. 48 data centers will be sold in total. The news comes in the wake of Verizon’s discussion with Monroe, Louisiana-based communications company CenturyLink Inc. in November 2015.
The move is in line with industry trends with a number of key industry players looking into selling their centers. It also comes after last year’s suggestion that Verizon was looking into the sale of enterprise assets up to a total of $10 billion. That proposal included selling off MCI assets, a company Verizon acquired in January 2006.
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