Nemertes Impact Analysis:

Managed IT provider, Terremark Worldwide, Inc. (NASDAQ:TMRK), announced that it has acquired privately held data management solutions provider DS3 DataVaulting. This move extends its data storage offering, adding options for on-site or cloud business continuity and disaster recovery (BC/DR) and follows last months launch of its Virtualized Disaster Recovery Service, focused on recovery for virtualized servers.

These moves stress two key trends Nemertes is following: Of organizations that use managed services, the most widely deployed (49%) is managed BC/DR. Even though IT budgets continue to be slashed, organizations will spend money on compliance requirements such as BC/DR.

Impacts::

Enterprises: BC/DR is a compliance requirement. Moving to a service is a way to meet compliance and reduce costs.

Vendors: Prepare for escalating data demands created by new technologies and increasingly stringent regulatory compliance, by offering both on-site and managed solutions.

Investors: Competitive threat for privately held managed data backup providers Axonhost, Cervalis, and FORTRUST as well as cloud providers Carpathia Hosting and Rackspace (NYSE:RAX).

By Katherine Trost, Research Analyst, Nemertes Research

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