Masergy Communications Inc. has acquired Broadcore (News - Alert) Communications in a move that brings together the two cloud services providers. Terms of the deal were not disclosed.

“Monty Ferdowsi and his management team at Broadcore have built a successful company by transforming a traditional PBX services business into a next-generation cloud communications provider,” says Chris MacFarland (News - Alert), CEO of Masergy. “The cloud communications market opportunity is expanding rapidly, and with this transaction, we can immediately offer these cloud solutions to enterprises on a global basis.” 

Masergy, an MPLS network operator that claims it championed cloud-based network visibility and control for global enterprises, recently introduced cloud-based services for managing web-based applications and network security. Broadcore, which is now a wholly-owned subsidiary of Masergy, brings to the table global cloud communication solutions including custom integration capabilities, mobility, SIP trunking, and unified communications. 

This Masergy-Broadcore pairing is just the latest combination of service providers in the cloud space. As Telesphere (News - Alert) CEO, Clark Peterson told TMCnet in an interview early this year, the cloud services space is highly fragmented and could benefit from consolidation. Of course, there’s already been a fair amount of action on this front.

In 2010, CBeyond paid $4 million for Arretta. The same month, M5 Networks (News - Alert) invested $8 million in Geckotech. And more recently, we’ve seen Earthlink acquire STS Telecom, TelePacific snap up Telekenex, West Corp. grab Smoothstone for $120 million and Warwick Valley Telephone get its hands on Alteva for $17 million. That’s not surprising, notes Telesphere’s Peterson, who says many LECs and CLECs want to get into cloud services, but they don’t have the right skill sets since their traditional businesses never went past the demarcation point.

And a Gigaom piece earlier this year noted that the “wave of M&A activity swelling the cloud services sector won’t stop with the software-as-a-service arena.” That piece noted that Internap’s planned $30 million purchase of Voxel (News - Alert) “signals a land rush for cloud services, beyond SaaS” that could make small but capable cloud service providers like Bluelock, Cloud Sigma, and Virtustream into attractive targets.

Want to learn more about cloud communications? Then be sure to attend the Cloud Communications Expo, collocated with ITEXPO West 2012 taking place Oct 2-5, in Austin, TX. The Cloud Communications Expo will address the growing need of businesses to integrate and leverage cloud based communications applications, process enhancement techniques, and network based communications interfaces and architectures. For more information on registering for the Cloud Communications Expo click here.

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