Independent Telcos Buy SDN-based Cloud Services Provider

A consortium of 32 independent telcos that own  BLM Acquisition Corp. has acquired cloud service provider Codero, a cloud hosting company.

The deal gives the regionals a cloud hosting capability, while Cordero gets “out of market” distribution channels and access to investment it needs to expand.

One practical angle: the owners are scattered over a wide area, but Cordero’s backbone uses software defined network architecture, with the practical implication that end user sites require very little hardware investment, allowing service providers  to log in to a portal and configure bare-metal servers, cloud resources and virtual networks on demand.

Codero has 4,000 customers of all sizes, from small to enterprise.

Codero customers will have enhanced connectivity options and Codero will gain access to what it calls one of the largest combined fiber networks in the United States.

The acquisition makes Codero a major cloud play in the cities that aren’t core markets and in smaller and rural towns. That isn’t necessarily unusual. But what is noteworthy is that use of SDN makes service delivery much more manageable, and cheaper.