Terremark CEO Steps Down Amid Verizon Takeover

Terremark's $1.4 billion acquisition by Verizon Communications

"I've had the privilege to lead Terremark and our amazing team of professionals for more than 30 years and I feel that now is the perfect time to step aside and allow the next generation of leaders to build on the success we have achieved," Medina said in a statement. "I truly believe that the collective strengths of Verizon and Terremark will propel the company to even greater heights in the years to come."

Medina founded Terremark as a real estate firm in 1980 and in 2000 transformed it into a services business which ultimately established itself as a leader in the cloud computing game for large enterprises and government bodies.

With Medina stepping down, Verizon Enterprise Cloud Strategy and Services Group President Kerry Bailey will take on the top executive role at Miami-based Terremark. Bailey has held a host of positions within Verizon, most recently leading Verizon's everything-as-a-service enterprise strategy as the colossal carrier climbs into the cloud computing space. At Terremark, Bailey will work closely with management and accelerate its cloud services vision and strategy, the companies said.

"What initially attracted us to Terremark was not only its innovative services and top-tier facilities, but the impressive team of experienced and talented professionals that Manny was able to bring together," Bailey said in a statement. "Terremark will drive Verizon's global cloud and IT solutions strategy, and I'm looking forward to continuing our work to roll out an unmatched portfolio of secure, on-demand cloud computing solutions to be delivered through a unified enterprise IT platform."

Verizon's $1.4 billion Terremark acquisition closed last month. Verizon plans to leverage the Terremark acquisition to fuel its cloud computing strategy, through which the company seeks to provide everything-as-a-service to businesses and government customers globally. Verizon said integrated cloud solutions from Verizon and Terremark will hit the market later this year.

Verizon's addition of Terremark to the fold gives the Basking Ridge, N.J.-based communications giant more ammo in its cloud arsenal by adding Terremark's virtualization, managed hosting, application management and cloud computing plays, along with Terremark's established presence in government and international clients.

The deal also lets Verizon expand its data center foot print. Verizon now has access to Terremark's Network Access Point Centers in Miami, Culpepper, Va., and Santa Clara, Calif.; its facilities in Europe and the U.S.; and its data center assets in Latin America including the Dominican Republic, Colombia and Brazil. The Terremark buy adds 13 data centers to Verizon's cadre of facilities. At the same time, Terremark customers now have access to the 200 data centers Verizon operates across 23 countries in North America, Europe and in the Asia-Pacific region.

Verizon's Terremark acquisition was the first of a string of high-profile acquisitions in which carriers, telecommunications providers and cable companies flexed their financial muscles to bring aboard established cloud computing players in bids to shake up and compete in the growing cloud marketplace. It was also a signing example of cloud computing driving consolidation.

In the weeks that followed Verizon's Terremark acquisition, Time Warner Cable said it would purchase cloud hosting provider NaviSite for $220 million.

Then, in April, CenturyLink Inc. revealed plans to acquire cloud provider and hosting operator Savvis Inc. for a $2.5 billion cash and stock purse. As part of the deal, CenturyLink also agreed assume or refinance Savvis' $700 million in debt, pushing the total deal to $3.2 billion.