NTT Com's Virtela Acquisition Builds WAN Virtualization Capabilities and Client Base

NTT Communications completed its previously announced acquisition of Virtela Technology Services Incorporated (Virtela), a leading global managed and cloud-based network services company.

"Leveraging advanced virtualization technologies, such as Network Functions Virtualization (NFV), features such as firewall, WAN acceleration and SSL remote access will be delivered from network cloud. Furthermore, these features are automated for on-demand activation and configuration, helping enterprises save capital and operating expenses. These features are planned to be available to NTT Com customers starting Q2 2014," said Akira Arima, CEO of NTT Com.

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In October 2013, NTT Communications announced two major international investments:  the acquisition of Virtela for US$525 million in cash, and the acquisition of an 80% stake in RagingWire for US$350 million.

Virtela Technology Services (Virtela), which is based in Denver, is a leading global managed and cloud network services provider serving over 500 multinational companies. Virtela integrates 1,000+ local and regional network providers, enabling the customer to build a virtual overlay network from multi-carrier MPLS, Ethernet, DSL, 3G/4G/LTE and other IP links, while benefitting from a single SLA and management portal. Virtela operates global operations and delivery centers in the U.S., India and the Philippines.  It has over 400 employees.

NTT Com said it plans to combine Virtela’s advanced service/operational platforms and expertise with its own global ICT infrastructure and resources.  NTT Com will also upgrade its cloud-based network services with Virtela’s network function virtualization (NFV) technology to virtualize the functions of customers’ network equipment, such as firewalls and WAN accelerators, enabling enterprises to benefit from instant service activation and significant cost reduction.

"Virtela is well known for its strong technology, networking expertise, global reach and highly regarded services," said Akira Arima, CEO of NTT Com. "As we advance our Global Cloud Vision, we expect to continue offering enterprise customers the highest possible value in services ranging from branch office networking to large-scale cloud migration."

"Virtela’s virtualized network services model combined with NTT Com’s brand and strength will create the industry’s most advanced services portfolio that enables enterprises to break free from the constraints of traditional network architectures and services," said Vab Goel, Virtela founder and general partner at Norwest Venture Partners.

Separately, NTT Communications will acquire approximately 80% equity interest in RagingWire Data Centers (RagingWire), a leading provider of data center services in the United States.

RagingWire has 650,000 square feet of data center space at its campuses in Sacramento, California, and Ashburn, Virginia. Both campuses are currently being expanded. In addition, RagingWire has begun construction of a new 150,000 square foot data center in Sacramento and will soon break ground on a 78 acre parcel of land in Ashburn, Virginia with designs to build 1,500,000 square feet of data center space. The company has annual revenues of approximately $85 million (USD), and a compounded annual growth rate of 30%.

NTT Com said the acquisition will more than double its data center space in the U.S.