Terremark

Terremark Worldwide, Inc. was an American information-technology infrastructure and data-center services company headquartered in Miami, Florida. The business was founded in 1980 by entrepreneur Manny Medina as a real-estate company. Its early activity centered on constructing and leasing office properties, but the character of the portfolio changed during the dot-com era as an increasing number of buildings became home to computer data centers. Terremark subsequently developed operational expertise in hosting and network infrastructure and became an information-technology services provider in its own right. The company’s most prominent infrastructure project was the Network Access Point of the Americas, generally known as the NAP of the Americas. Located in Miami, the facility functioned as a major data center and Internet exchange point, connecting networks serving the United States, Latin America, and other international markets. It also hosted one instance of the K-root server for the Domain Name System. This infrastructure gave Terremark a strategic position in Internet connectivity and enterprise hosting, particularly for organizations requiring links between North American and Latin American networks. Terremark’s service portfolio included managed hosting, colocation, disaster-recovery services, data storage, and cloud computing. Colocation allowed customers to place servers and other equipment in Terremark facilities, while managed hosting and related services provided operational support for enterprise applications and systems. Disaster recovery and storage offerings addressed business-continuity and data-protection requirements. Together, these services positioned Terremark as an infrastructure partner rather than a consumer-facing technology brand. The company expanded beyond its original Miami base and operated data centers in the United States, Europe, and Latin America. At its Miami-Dade County headquarters, Terremark employed more than 750 people according to the referenced encyclopedia material. Its business was therefore closely associated with large-scale facilities, network interconnection, and outsourced information-technology operations. Terremark became the subject of a major acquisition in 2011. On January 27 of that year, Verizon Communications announced an agreement to acquire Terremark Worldwide for $19 per share in a transaction valued at approximately $1.4 billion. Verizon completed the acquisition on April 12, 2011. Manny Medina left the company at the time of the takeover, and the business operated under new leadership after becoming part of Verizon. The acquisition reflected the growing strategic importance of cloud, hosting, and data-center infrastructure to telecommunications companies. In 2013, Verizon’s role as the hosting provider for the initial launch of HealthCare.gov brought the company into public scrutiny after website outages disrupted the government website’s rollout. The Department of Health and Human Services later disclosed that it did not renew Verizon’s hosting contract and awarded the work to Hewlett-Packard. The incident concerned Verizon’s hosting engagement and is relevant to Terremark’s broader corporate context because Terremark had become part of Verizon’s enterprise infrastructure portfolio. Verizon later reassessed its data-center assets. In January 2016, it confirmed plans to divest its data-center portfolio, with Equinix identified as the buyer in a transaction valued at about $3.5 billion. In May 2017, Verizon confirmed the divestiture of Terremark to IBM. These ownership changes indicate that Terremark’s independent corporate identity increasingly became part of larger technology and infrastructure portfolios. The current degree to which the Terremark name remains an independently marketed operating brand is not established by the supplied reference material.

Terremark began in 1980 when Manny Medina incorporated the company as a real-estate business. Its initial activity involved constructing office buildings and leasing commercial space. The business’s later direction was shaped by changes in the technology economy. During the dot-com period, more of Terremark’s properties were leased to computer data centers. This exposure to technology tenants gradually led the company to develop capabilities beyond property ownership and to operate as an information-technology infrastructure provider. A defining step in that evolution was the development of the Network Access Point of the Americas, or NAP of the Americas, in Miami. The facility served as a large data center and Internet exchange point. Its location supported network traffic between the United States, Latin America, and other connected markets. The facility also hosted one instance of the K-root server for the Domain Name System, reinforcing its role in the Internet’s global infrastructure. Through this and other facilities, Terremark shifted from a landlord serving technology companies into a company delivering data-center and network services directly. Terremark’s operating portfolio included colocation, managed hosting, disaster recovery, data storage, and cloud computing. It operated data centers in the United States, Europe, and Latin America. These services were directed primarily at businesses and institutions that needed resilient computing environments, connectivity, storage, and outsourced systems management. The company’s Miami-Dade County headquarters employed more than 750 people according to the referenced material. On January 27, 2011, Verizon Communications announced that it would acquire Terremark Worldwide for $19 per share in a transaction valued at approximately $1.4 billion. Verizon completed the acquisition on April 12, 2011. Manny Medina left Terremark at the time of the takeover. The company subsequently operated within Verizon, with changes to its senior leadership during the first year after the transaction. Terremark’s later history was connected to Verizon’s broader hosting and data-center activities. In October 2013, U.S. Secretary of Health and Human Services Kathleen Sebelius stated that Verizon, which hosted HealthCare.gov, was the government contractor associated with outages that affected the website during its initial launch. In November 2013, HHS disclosed that it would not renew Verizon’s hosting contract and instead selected Hewlett-Packard. The supplied reference describes this episode in the context of Verizon; it does not establish that Terremark itself independently held the contract. Verizon subsequently decided to reduce its exposure to the data-center business. In January 2016, it confirmed plans to divest its data-center portfolio, with Equinix connected to a transaction valued at around $3.5 billion. In May 2017, Verizon confirmed the sale of Terremark to IBM. Following that transaction, IBM became Terremark’s parent and owner according to the referenced material. The available sources do not provide enough information to determine whether Terremark continues to operate as a separately marketed brand, has been fully integrated into IBM, or retains a distinct legal and commercial identity.

• 2017

  Terremark is sold to IBM

  [1]Terremarken.wikipedia.org

  Verizon confirmed the divestiture of Terremark to IBM, which became its parent company.

• 2016

  Verizon moves to divest data centers

  [1]Terremarken.wikipedia.org

  Verizon announced plans to sell its data-center portfolio, with Equinix associated with the proposed transaction.

• 2013

  HealthCare.gov hosting controversy

  [1]Terremarken.wikipedia.org

  Verizon’s hosting role during the troubled initial launch of HealthCare.gov led to public and governmental scrutiny and the subsequent non-renewal of the hosting contract.

• 2011

  Verizon announces Terremark acquisition

  [1]Terremarken.wikipedia.org

  Verizon announced a $19-per-share acquisition agreement valued at approximately $1.4 billion.

• 2011

  Verizon completes the acquisition

  [1]Terremarken.wikipedia.org

  The transaction closed on April 12, 2011, and Medina departed the company at the time of the takeover.

• 1990

  The business begins shifting toward technology infrastructure

  [1]Terremarken.wikipedia.org

  During the dot-com era, an increasing share of Terremark’s buildings was leased to data-center operators, helping the company develop into an information-technology services business.

• 1980

  Terremark is incorporated as a real-estate company

  [1]Terremarken.wikipedia.org

  Manny Medina incorporated Terremark, initially focusing on the construction and leasing of office buildings.

• NAP of the Americas becomes a core infrastructure asset

  [1]Terremarken.wikipedia.org

  Terremark developed the NAP of the Americas in Miami as a major data center and Internet exchange point serving international network connectivity.

Enterprise-grade data-center, network-interconnection, and outsourced IT infrastructure provider, with particular historical importance in connectivity between the United States and Latin America.

• Data-center services

  Colocation

  Terremark provided facilities where enterprise customers could house servers, networking equipment, and related systems. Its colocation offering was supported by purpose-built data centers and network connectivity, allowing customers to use professional infrastructure without operating an equivalent facility themselves.

• Managed IT infrastructure

  Managed hosting

  Managed hosting was a core Terremark service in which the company supplied data-center space, computing infrastructure, and operational support for customer applications and systems. The service targeted organizations seeking outsourced administration and dependable enterprise hosting environments.

• Business continuity

  Disaster recovery

  Terremark offered disaster-recovery capabilities designed to help organizations restore or maintain access to systems and data after infrastructure failures or other disruptive events. The offering formed part of its broader enterprise continuity and resilience portfolio.

• Storage services

  Data storage

  Data-storage services formed part of Terremark’s infrastructure portfolio, supporting customers that needed hosted capacity and professionally managed environments for storing business information and application data.

• Cloud infrastructure

  Cloud computing

  Terremark offered cloud-computing services as its data-center business expanded into remotely delivered infrastructure and hosted computing. These services complemented its colocation, managed-hosting, storage, and recovery capabilities.

• Internet exchange and data center

  NAP of the Americas

  The NAP of the Americas was Terremark’s signature infrastructure project in Miami. It operated as a large data center and Internet exchange point, supporting interconnection among networks and serving as an important gateway for traffic involving the United States and Latin America. The facility also hosted an instance of the K-root DNS server.

• 2013

  HealthCare.gov hosting outages

  During the initial rollout of HealthCare.gov, the website experienced outages. The U.S. Department of Health and Human Services identified Verizon, the hosting contractor, in its public account of the disruption and later declined to renew the hosting agreement, selecting Hewlett-Packard instead. The supplied material links the incident to Verizon rather than documenting a separate Terremark contract.

  Source

Read more

• 2017

  Divest Terremark to IBMM&A

  Background

  The sale followed Verizon’s broader decision to divest its data-center portfolio.

  Action taken

  Verizon confirmed the sale of Terremark to IBM.

  Aftermath

  IBM became Terremark’s parent and owner. The supplied sources do not establish the subsequent standalone status of the Terremark brand.

  Source

• 2016

  Verizon decides to divest its data-center portfolioStrategy

  Background

  Verizon reassessed its ownership of data-center assets and announced an intention to exit or reduce its direct participation in the portfolio.

  Action taken

  Verizon confirmed plans to sell its data-center portfolio, with Equinix associated with a transaction valued at approximately $3.5 billion.

  Aftermath

  The divestiture process preceded Verizon’s later confirmation that Terremark was sold to IBM.

  Data-center portfolio transaction value. Approximately $3.5 billion (2016)

  Source

• 2011

  Accept Verizon acquisitionM&A

  Background

  Terremark had developed from a real-estate business into a multinational data-center and managed-services provider. Verizon sought to acquire the company and its infrastructure capabilities.

  Action taken

  Verizon agreed to purchase Terremark Worldwide for $19 per share, and the acquisition closed on April 12, 2011.

  Aftermath

  Terremark became part of Verizon, Manny Medina left at the time of the takeover, and the company underwent leadership changes.

  Transaction value. $1.4 billion announced transaction value (2011)

  Source

1. 1Terremarken.wikipedia.org