The consistent focus on cloud computing has created significant hype within the telecommunication space, while also creating acquisition opportunities. Those companies that have recognized the potential in the market have also recognized the promise in specific companies. Here, we’ll take a look at RCP Mag’s top five cloud business acquisitions in 2011. Interested parties take note – we’re bound to see much more excitement in 2012.
Verizon Communications announced earlier this year that it would pay $1.4 billion to acquire Terremark Worldwide (News - Alert). This move in the cloud business space would capture one of the largest independent providers of managed hosting and cloud services catering to government agencies and large enterprises, moving its attributes into Verizon’s portfolio.
For Verizon, this acquisition also provided Verizon with instant credibility in the cloud business space. Plus, it made more sense for the company to acquire a leading provider in this space, rather than to build out its own data centers throughout the world.
Shortly after Verizon announced its intentions, Time Warner Cable did the same, setting its sights on NaviSite (News - Alert). The transaction was a mere $230 million, chump change compared with CenturyLink’s bid to take over Savvis for $2.5 billion. Once the deal was complete, CenturyLink combined its managed hosting business with Savvis. As a result, CenturyLink – which also acquired Qwest Communications – now operates 48 data centers throughout Europe and Asia, North America, with nearly 2 million square feet of floor space.
Salesforce.com (News - Alert)-Radian6
Salesforce.com’s purchase of Radian6 was definitely the smallest in the cloud business space, yet it was easily defined as the core focus for salesforce.com in 2011. The company understands the value of enterprise social networking and companies can use the portal to learn what is being said about them on a variety of social networks. Salesforce.com leadership believes enterprises will do well to embrace social networking for interacting with partners, suppliers and customers.
Oracle (News - Alert)-RightNow
Oracle has not ignored the success and growth Salesforce.com has experienced in cloud business and the software giant wants to get its own leverage in this space. The company set its sights on RightNow Technologies, a Salesforce.com rival. RightNow is focused on the customer service niche, used by 2,000 organizations. This deal stresses Oracle’s new commitment to cloud business, secure by the launch of the Oracle Public Cloud.
SAP (News - Alert)-SuccessFactors
SAP has failed to take the bull by the horns in terms of cloud business. With its Business ByDesign slow to gain momentum, the company agreed to acquire SuccessFactors, a provider of cloud-based human capital management solutions. Will this lead to greater cloud business opportunities for SAP? Only time will tell.Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.
Edited by Tammy Wolf