Verizon Launches Auction To Sell Data Centers (reuters.com)

operator_error writes: Verizon has now chosen to reverse "its strategy to expand in hosting and colocation services after it acquired data center operator Terremark Worldwide Inc in 2011 for $1.4 billion", and has "started a process to sell its data center assets". The so-called 'colocation' portfolio up for sale includes 48 data centers, and generates annual earnings before interest, tax, depreciation and amortization of around $275 million. The enterprise telecommunications industry has had to adapt in recent years to corporate customers seeking more sophisticated and cheaper offerings to manage their data. Verizon joins a host of its rivals in telecommunications who are shedding their data centers.

Comments

Re:They should put it on ebay

[ShanghaiBill]

Data centers suffer from very rapid capital depreciation. Kryder's Law means your storage hardware loses half its value every 13 months. It is a very competitive business, and only large scale automated data centers can be competitive. This is the start of the shake out, not the end. You will soon see more companies exit the business.