VMware invests $20 million in cloud partner Terremark

Equity stake gives VMware 5% of Terremark’s stock

VMware has invested $20 million in cloud computing partner Terremark, buying up about 5% of the company’s stock.

VMware and Terremark have an existing partnership, with Terremark using VMware’s virtualization technology to deliver its enterprise cloud platform, which lets customers buy pools of processing, memory and storage that can be scaled up as needed. While VMware’s vCloud initiative includes several hundred service providers, VMware singled Terremark out as its “service provider of the year” at a recent partner conference. 

VMware recently unveiled vSphere, a so-called cloud operating system that will virtualize and aggregate data center resources, and let IT shops connect their private data centers to public cloud services offered commercially by Terremark and other vendors.

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VMware has invested $20 million in cloud computing partner Terremark, buying up about 5% of the company’s stock.

VMware and Terremark have an existing partnership, with Terremark using VMware’s virtualization technology to deliver its enterprise cloud platform, which lets customers buy pools of processing, memory and storage that can be scaled up as needed. While VMware’s vCloud initiative includes several hundred service providers, VMware singled Terremark out as its “service provider of the year” at a recent partner conference. 

VMware recently unveiled vSphere, a so-called cloud operating system that will virtualize and aggregate data center resources, and let IT shops connect their private data centers to public cloud services offered commercially by Terremark and other vendors.

VMware’s investment in Terremark, announced Tuesday, is an equity stake consisting of 4 million shares of newly issued common stock at the price of $5 per share.

“VMware’s powerful technology is a key component of our suite of virtualized offerings, including our Enterprise Cloud platform,” Terremark CEO Manuel Medina said in a press release. “This investment in Terremark is an indication of the confidence VMware has in our Company and we are proud to have such a strong show of support from this long-term, strategic partner.”

VMware said its investment in Terremark underscores the importance of the companies’ partnership and Terremark’s role in the “vCloud initiative to develop reliable and scalable cloud computing solutions.”

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