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Terremark plans to bring the next 50,000 square feet of its Culpeper, Va., facility online in the first quarter of 2010
Terremark and Rackspace – two important players in the market for IT infrastructure outsourcing – both touted growth in their cloud computing businesses during the quarter ending Sept. 30, while reporting overall year-over-year revenue increases.
“What really stood out this quarter was a significant acceleration of our cloud computing revenue,” Terremark CEO Manuel Medina said in a conference call, citing a 420-percent increase in cloud-computing revenue from the previous quarter.
Rackspace reported a more modest cloud revenue increase: $15.3 million total for the quarter – up from $13.1 million in the previous three months. The company's cloud computing business now represents about 10 percent of all of its revenues – up from five percent one year ago.
Terremark CEO said the federal government was the largest contributor to the company's strong cloud-related results. The provider signed contracts for cloud-based services with three new federal agencies during the quarter.
“Majority of the growth has been with the federal government,” Medina said. “We do expect that to change as we have significant enterprises in our pipeline.” The company's existing and new enterprise customers are driving the ongoing expansion of its data center footprint.
Terremark is in the process of bringing online an additional 5,000 square feet of data center space in Sao Paulo, Brazil. Yahoo! has signed on as the first customer to occupy the new space, Medina said.
The company has also recently opened its first data center in Istanbul, Turkey. The facility provides about 17,200 square feet of raised floor. Medina did not disclose what company was the Turkish data center's anchor client.
Terremark's other expansion plans include an additional 14,000 square feet in Santa Clara, Calif., scheduled to come online in the first quarter of 2011, and another 50,000 square feet at the NAP of the Capital Region in Culpeper, Va., due to light up in the first quarter of 2010. The latter site is located about 60 miles from Washington, D.C.
The company's total revenue during the quarter was about $69.8 million – a 17-percent year-over-year increase, with record bookings of $34.2 million. Terremark reported an operating income of $6.6 million.
Rackspace reports 45-percent year-over-year income increase
Rackspace also reported continued expansion of its data centers, citing the beginning of operations at its Ashburn, Va. Facility during the second quarter of 2009 and the plan to bring the new Chicago facility online in the first quarter of 2010.
The company's total server count increased to 54,655 from 52,269 machines in the previous quarter and the number of customers went up from about 71,000 to about 81,000.
Rackspace reported a total revenue of $162.4 million during the quarter – a 17.4-percent year-over-year increase. Its net income during the quarter was $7.6 million – up 45.3 percent from the same period last year.
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Keywords: Terremark, Rackspace, Web hosting, colocation, cloud computing, data center services, federal cloud computing, quarterly earnings | | 
