Global Crossing to take cloud computing services global

Thursday, February 18, 2010

IP connectivity provider Global Crossing (Nasdaq: GLBC) seeks to take the cloud computing services it has been providing in Latin America to other parts of the world in the near future, Gary Breauninger, Global Crossing's CFO for North America and Worldwide Carrier Services, told BNamericas.

"Right now we're an infrastructure provider, an enabler of cloud computing. We have some cloud computing services in Latin America that we're trying to take global. That'll be another area of growth for us in the future," Breauninger said.


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Héctor Alonso, managing director of the company's Latin America unit GC Impsat, told BNamericas that as part of the company's plans to offer more value-added services, Global Crossing is constantly eying upgrades in its 15 data centers in Latin America, in its data centers in Europe and in other infrastructure.

Global Crossing has a data center in London's docklands and in Amsterdam, and is planning opening new data centers in Frankfurt and Madrid this year and in Paris in 2010 or 2011.

"Data centers in Latin America are a very large part of our revenue stream and are becoming more and more consistent, with the fact that we're adding value and new services into our data center offering. The idea of cloud computing is evolving with increasing clarity of direction," Alonso said.

Priorities for this year are investments in capacity in the data centers in Brazil and Chile, as well as investing in value-added services and launching new services over WAN solutions platforms. Smaller investments will be made in Argentina and Colombia which still have latent capacity.

The plan is similar for global investments.

"We're trying to leverage the subsea and terrestrial systems that enable the enterprise and the big content providers to get more capacity, as well as IP upgrades from a VPN perspective and an Ethernet perspective," Breauninger said.


Global Crossing currently offers a range of on-demand solutions including utility computing, where the service provider makes computing resources and infrastructure management available to the customer as needed, and charges them for specific usage rather than a flat rate.

"A customer's desire to implement a cloud computing model is directly related to their willingness to share services, their comfort level with the security those shared services will have and the applications they are using to run their business," according to Gabriel del Campo, Global Crossing's VP of data center services in EMEA.

Global Crossing also provides virtualized services in Latin America and Europe, including a virtual hosting solution, designed to let enterprises grow their businesses, optimize resources and improve efficiency, while reducing expenditures.

The company also offers a Content Delivery Network (CDN), which is a form of cloud computing. A CDN can accelerate access to and downloading of business applications.