Verizon Terremark Deal May Spur Cloud Acquisitions

Verizon Communications Inc.’s acquisition of cloud-computing company Terremark Worldwide Inc. may prompt rival carriers to enter the fast-growing industry, said Michael Nelson, an analyst at Mizuho Securities USA Inc.

Verizon’s $1.4 billion purchase announced yesterday gives the company access to servers where data can be stored, in the U.S., Latin America and Europe and brings business and government customers. Carriers like AT&T Inc. may seek similar deals, Nelson said.