Deals

Verizon acquires enterprise services provider CloudSwitch

Verizon-CloudSwitch

Verizon-CloudSwitchVerizon on Thursday announced it will purchase cloud services firm CloudSwitch with the intent of boosting its enterprise and IT offerings.

Terms of the deal were not disclosed.

Verizon plans to combine CloudSwitch with the Terremark IT services company it already owns. The company hopes the CloudSwitch software, which enables enterprises to easily move applications and workloads into the cloud, will help companies move over to Terremark’s services.

Specifically, CloudSwitch currently provides an interface so customers can port applications to Amazon Web Services, Terremark and Microsoft Windows Azure’s clouds. By owning CloudSwitch and Terremark, Verizon can assure customers of better security and control between CloudSwitch and Terremark. In theory, this could help peel some enterprise customers away from Amazon and Microsoft.

“The cloud market is a rapidly growing opportunity, with very real benefits both for our business customers and the consumers they serve,” said Bob Toohey, president of Verizon’s global enterprise unit, in a statement.

CloudSwitch previously earned $15.4 million in two funding rounds. In January, 2009, CloudSwitch raised $7.4 million in first-round funding from the likes of Atlas Ventures and Matrix Partners. The company then grabbed another $8 million in its second round in June, 2009. The company was reportedly in talks for a third round when Verizon approached it with an acquisition proposal.