Internet security expertise has long been a strength for Terremark Worldwide as it competes for IT outsourcing deals with security-conscious government agencies. But the company's emphasis on security is also paying off in its cloud computing business, Terremark officials said Wednesday.
"A vital component of every conversation with CIOs is cybersecurity," said Terremark CEO Manuel Medina, who said the company's track record has been a "key differentiator" in recent customer wins.
Terremark (TMRK) reported record bookings and raised its revenue guidance for fiscal 2011 as it reported its earnings for the quarter ended June 30. The colocation and cloud computing specialist reported $57.9 million of new annual contract value booked in the first quarter, with total revenues of $79 million and EBITDA of $19.2 million. Terremark also increased its full-year 2011 revenue projection to a range between $345 million and $350 million, up from its previous view of $338 million to $343 million.
The annualized cloud computing run rate was $26.0 million, a 19 percent increase from the previous quarter. Medina said Terremark's cloud business was benefitting from the breadth of its offerings - which include colocation, managed hosting, cloud computing, network services, security consulting and disaster recovery - as companies size up opportunities for a hybrid cloud computing implementations.
Hybrid Cloud Adoption is Strong
"Hybrid solutions are our number one success," said Medina. "We expect the cloud to be a revolutionary change in how people use IT services. But if you want to use our colocation services too, that's great as well."
Medina highlighted several key accomplishments in the quarter, including the signing of a major contract with Verizon Business, the launch of the NAP of Amsterdam, and a record-breaking bookings quarter. The company also bought more land in Virginia for its NAP of the Capitol Region.
Medina said the company is well positioned to build on that success. "We are extraordinarily well aligned with the federal government's plans to consolidate its data centers and deploy secure cloud computing infrastructure," said Medina.
John Rath contributed to this story.