Cable companies get into the datacenter game

Cable companies are doing far more than delivering entertainment into your home these days; they want their share of the business cloud market services, too.

So what's your cable company up to?  If you are a Comcast consumer (or anyone who watches TV news) you probably know that your cable provider is going full force into the TV business by merging with NBC Universal, a deal that has had the regulators rewriting the books to try to prevent Comcast from getting monolithic control of the content that goes into the homes of millions of subscribers.  But if you are a Time Warner subscriber (the 2nd largest cable company in the US), you probably have heard little from them since the breakup with AOL in the dissolution of 2000's "deal of the century", that didn't quite make it to the end of the first decade of the new millennium.

Earlier this month, Time Warner leapt feet first into the datacenter business by announcing their planned $230 million acquisition of NaviSite, a company focused on providing cloud hosting services, which should beef up the mediocre Road Runner business class services currently offered by Time Warner. Rather than spending the time and money to build up their own operations, this acquisition will give Time Warner 10 additional data centers in the US and UK including two that are SAS Type II, which will give Time Warner an additional high-end datacenter offering to their customers.

It also gives them a complete cloud enterprise built on top of VMware's vSphere, which should give them an edge as they pursue new business. VMware is aggressively marketing their hypervisor and virtualization and Time Warner will be able to ride their technology and marketing coattails. Conversely, I'm sure we will see some major partnering announcements from VMware and Time Warner over the next year on cloud service offerings.


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