QTS to Serve CSC’s Data Center Outsourcing Clients

Strikes potentially lucrative partnership as IT outsourcing giant continues turnaround efforts

Yevgeniy Sverdlik

October 23, 2015

1 Min Read
QTS to Serve CSC’s Data Center Outsourcing Clients
QTS Realty Trust is known for building massive data centers, like this huge facility in Suwanee, Georgia. (Photo: QTS Realty)

QTS Realty Trust, one of the largest data center providers in the US, will be one of two companies providing data center outsourcing services to customers of the IT outsourcing giant Computer Sciences Corporation, QTS announced this week.

Around since the late 50s, CSC is a multinational IT services giant with $12 billion in annual revenue that primarily serves government agencies and large enterprises. As part of its strategy, it pursues outsourcing deals over $100 million, according to its annual report for 2015.

QTS will provide custom data center suites and colocation space to CSC customers under the new agreement. QTS did not disclose who CSC’s second data center outsourcing partner was.

The deal is part of CSCS’s wider plan to optimize its global footprint. It has been pursuing a “get fit” agenda since about three years ago, divesting non-core assets and restructuring to get out of a slump that had caused a dramatic drop in stock price and market capitalization.

As part of turnaround efforts, in progress since 2012, CSC’s board of directors recently voted to split it into two independent entities, one focused on private and public-sector customers internationally and the other serving strictly US government agencies.

The partnership has the potential to deepen QTS’s already substantial play in the public sector. The company has been pursuing government customers for several years, starting with its Federal Cloud business, launched in 2014 and hosted at it Richmond, Virginia, data center.

QTS became a certified FedRAMP cloud provider late last year and this year acquired Carpathia Hosting, which, in addition to a massive managed hosting business, also brought its substantial federal government business under QTS’s wing.

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