YOU ARE AT:AmericasEmbratel invests $50 million in new data center to offer cloud services

Embratel invests $50 million in new data center to offer cloud services

Offering cloud computing services is a logical step for telecom operators, since they own network connections, which is the most crucial part of the cloud ecosystem. Yesterday, Sept. 26, Brazil’s Embratel, which belongs to América Móvil, launched a data center in São Paulo focusing on providing cloud services. Embratel invested U.S.$50 million (R$100 million) to build 7,000 square meters with the capacity to allocate 150,000 virtual servers.

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The newest data center is Embratel’s fifth in Brazil and América Móvil’s 18th in Latin America. José Formoso, president of Embratel, said that the company will offer two main product families: cloud services including IaaS (infrastructure as a service) and SaaS (software as a service); and traditional data center services, such as hosting, disaster recovery and moving.

Embratel is just beginning to enter the data center and cloud market which  already has several more established companies. When asked about this timing, Formoso said that Embratel is counting on reliability, security, quality and low latency to differentiate itself in the competitive market.

>>> Check out some photos from the event .

The Brazilian launch is connected to América Móvil’s cloud strategy, said Formoso. Across Latin America, there are four data centers focused on cloud, located in São Paulo, Brazil; Bogotá, Colombia; Buenos Aires, Argentina; and Mexico City. “Brazil is the largest data network market for América Móvil,” he told RCR Wireless News.

Earlier this year, América Móvil released plans for cloud computing services through its subsidiaries in Mexico, Colombia, Argentina and Brazil. This latest venture aims to help converge América Móvil’s telecom and IT solutions for enterprise customers. Formoso explained that the new offerings are the “next step,” since firms can buy cloud services direct from the Web portal.

Embratel is an example of how carriers are embracing cloud computing as a key corporate strategy. Indeed, the global cloud computing market has been strengthened by telecom competition, which has also placed those companies in a prime position to take advantage of the growing market, according to a Pyramid Research report.

A survey from Infonetics Research showed that 70% of operators are investing in cloud services in anticipation of demand. Among the top operator strategies are bundling cloud and network connectivity services; and offering cloud services over Ethernet or IP VPN.

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