So, on the $ 1.4 billion planned deal, the WSJ comments
“The acquisition could help the company secure more deals for such services—collectively known as "cloud computing"—and compete with companies like Amazon.com…”
VentureBeat on the other hand says
“The deal nets Verizon 13 data centers across the world, including a 750,000 square foot center in the U.S., Amsterdam and Brazil. While Verizon is spinning the purchase as a way to advance its cloud services, the deal really boils down to buying a lot of real estate for servers.”
I would say it is somewhere in between. I highly doubt Verizon can culturally sell much of anything which does not require a multi-year commitment and does not come with a hefty early cancellation penalty. So competing with Amazon or other cloud vendors in small units of processing/storage and small units of time is not likely.
On the other hand, Terremark does bring more than data centers. It brings decent competence in managed services, something Verizon can use as it grows its corporate business. Terremark also brings government vertical and international, particularly Latin American presence which extends Verizon’s reach in both.
