Verizon has devised a plan to sell its data center business in a potential $2.5 billion deal, according to a Reuters report citing people close to the company. Selling its data center business is just one of several moves the telco has made to realign its asset portfolio.
Rumors about the sale of Verizon's remaining wireline and enterprise assets have emerged in recent days, but CFO Fran Shammo maintains that it plans to hold onto the assets.
Verizon is considering a sale of its enterprise assets, which could fetch the telco as much as $10 billion, according to a Reuters article citing people close to the company. If such a sale were to take place it would include the enterprise unit formerly known as MCI and its Terremark data center business.
Verizon sees continual momentum for expanding its enterprise services outside of the United States, but according to Fran Shammo, EVP and CFO, the telco can do it without having to purchase other service providers.
A Terremark data center outage on Sunday is the latest issue to afflict the Obama administration's troubled HealthCare.gov website.
Verizon EVP and CFO Fran Shammo told investors he recognizes that while cloud services represent a large growth opportunity for them, they need to find a way to differentiate its offering amidst what has become a crowded space.
AT&T and Verizon, according to Gartner's Magic Quadrant report on managed hosting providers in North America, have established themselves as key players in the segment.
Terremark, Verizon's cloud and data center services unit, has expanded the capabilities of its cloud services in its Dallas and London data centers.
Terremark, Verizon's data center and cloud services subsidiary, on Wednesday launched a set of managed and professional security services in Brazil and in other Latin American countries.
Verizon continues to carve out a wholesale niche in the cloud services market as the service provider's wholesale division on Thursday inked an agreement with Princeton Hosted Solutions.