PAETEC cashes in on cloud services by expanding its data center reach

PAETEC (Nasdaq: PAET) is the latest service provider to make a bigger claim in growing cloud services market supported by an expanded cloud-based product set and greater national data center presence.

By the end of 2012, PAETEC will add 13 new data centers to its current set of seven centers, bringing it to 20 nationwide centers when the buildout is completed.

This year, PAETEC will expand its data center presence to McLean, Va., Tampa, Fla., Columbus, Ohio, Detroit, Mich., and Charlotte, N.C. followed by new centers in Dallas, Texas, Chicago, Ill., Northern California, Rochester, N.Y., Pittsburgh, Pa., Denver, Colo., Atlanta, Ga. and the Pacific Northwest.

Building out these data centers coincides with a new set of cloud-based products and other enhanced business products including dedicated server, virtual server, managed storage, and hosted exchange.

Similar to other new product drives like Ethernet over Copper (EoC), PAETEC plans to target its existing and new base of mid-sized business customers.

Facing a host of competitive and incumbent service providers expanding their data center and cloud capabilities, PAETEC's cloud service and data center expansion couldn't be better. The challenge, of course, for PAETEC and other service providers offering cloud will be in their ability to not only sell the cloud service, but work with each customer to understand how cloud can augment their business activities beyond just cost savings.

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