Zayo Announces Infrastructure-as-a-Service for Clouds

Following its recent acquisition of Latisys Holdings, a colocation and infrastructure as a service (“Iaas”) provider, Zayo Group unveiled its updated cloud portfolio to now include private, public and hybrid IaaS cloud services in the U.S. and Europe. This encompasses high-performance, scalable, virtualized and non-virtualized compute and storage on a compliance audit-ready platform.

Zayo said this strategic expansion builds on the Latisys assets with additional capabilities from cloud platforms obtained through the AtlantaNAP and Neo acquisitions. Zayo’s portfolio of cloud services includes a host of value-added managed services that can be layered on to custom tailored solutions for added performance, security, scalability and continuity. These services include security services such as managed firewall, threat management and log management, performance services, such as load balancing, monitoring and database management and a variety of storage and backup solutions, including fully featured disaster recovery as a service (DRaaS).

“The rapid adoption of cloud services makes Zayo's expansion into this market a natural extension of our bandwidth infrastructure business,” said Chris Morley, COO and president of Cloud and Connectivity at Zayo. “Through acquisition and investment, we have built a set of private and hybrid cloud solutions that are compelling in their own right and even more so when combined with our extensive fiber and data center facilities.”

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In January 2015, Zayo agreed to acquire the operating units of Latisys Holdings, a colocation and infrastructure as a service (“Iaas”) provider for US$675 million.

Latisys provides colocation and IaaS services through eight datac enters across five markets – Northern Virginia, Chicago, Denver, Orange County and London. Its data centers currently total over 185,000 square feet of billable space and 33 megawatts of critical power with the ability to expand. Latisys focuses on marketing to and serving approximately 1,100 predominantly medium to large enterprise customers with large storage, compute and data connectivity needs. The combination of high quality assets, innovation and accelerating market demand has driven a strong track record of robust revenue growth and margin expansion since its founding in 2007. The company generated Adjusted EBITDA of approximately $11.0 million for the three months ended September 2014 and approximately $4.2 million for the month of November 2014.

Zayo said the deal will expand its data center portfolio to 45 facilities within the US, France and the United Kingdom. Latisys provides zColo a data center presence in four new markets. Zayo owns and operates extensive metropolitan fiber networks across all of the Latisys markets, physically connecting each of its data center facilities. This will allow Zayo to sell fiber and bandwidth services to Latisys’ core set of enterprise customers, and to market new colocation and IaaS services to Zayo’s base of carrier and content customers.