As cloud services providers such as Verizon (NYSE: VZ) are expanding their data center holdings through acquisition on a national and international scale, the same thing may be happening at the regional and local level. Chanhassen, Minn.-based data center services firm DataLink announced just today that it had acquired all of the assets of fellow Minneapolis firm MidWave for about $17.6 million.
Both companies offer services such as data center migration and virtualization, as well as storage, e-mail and business continuity and disaster recovery services. Datalink picks up many new customers through the deal, though the company also will assume about $11 million in MidWave liabilities. MidWave, according to a Datalink press release, has $11.5 million in assets and about $500,000 in property and equipment.
Datalink is not new to the acquisition game, as it acquired data network firm Cross Telecom back in 2009. The markets for cloud services and virtualization are attracting companies of all sizes, and sector consolidation has ramped up over the last two years. Verizon acknowledged recently that it sees cloud services exploding into a $150 billion market by 2020. On a larger scale, Verizon has acquired companies like Terremark and CloudSwitch to strengthen its efforts.
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Verizon acquired CloudSwitch in August
Verizon sees cloud services as a massive market