TDS' (NYSE: TDS) latest move to acquire Scottsdale, Ariz.-based OneNeck IT Services, illustrates a growing trend by TDS to bolster their cloud strategies via a mix of internal development and targeted acquisitions.
Under the terms of the agreement, TDS will acquire OneNeck IT Services, which reported $37 million in 2010 revenues, for $95 million. Expected to be complete in July, OneNeck will become a subsidiary of TDS Hosted and Managed Services division.
So what does OneNeck bring to the TDS cloud table?
Specializing in Enterprise Resource Planning (ERP) applications, OneNeck provides a number of managed hosting services, including management and monitoring of client IT infrastructure, both client-owned and those that OneNeck provides. In addition, OneNeck provides network management, disaster recovery, security administration, and end-user support on a 24/7 basis for its business customers.
All of OneNeck's services run via a 12,000 sq. ft data center space in Arizona in addition to a partnership with Datapipe that enables it to access data center space in Somerset, N.J. that gives it a way to serve various east coast customers.
Over the past year, TDS has been actively building up its cloud and data center capabilities through the acquisition of not only OneNeck, but also VISI and TEAM, which are now both subsidiaries of TDS' newly created Hosted & Managed Services (HMS) division.
William Megan, who was recently appointed president of TDS Hosted & Managed Services (HMS) and executive vice president at TDS Telecommunications Corp., said that "OneNeck brings sophisticated hosted application management and managed hosting to our product portfolio that will enable us to leverage the data center assets recently acquired with VISI and TEAM."
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