Virtustream has announced that it plans to double its US. cloud capacity by mid 2014.
The expansion comes in response to strong demand for the company's services from prospects and existing clients, as well as demand for new services and expanded capabilities including SAP HANA Managed Services and increased traction in the US federal cloud market.
The company also announced plans to add service provider partners in other geographies to further extend its global reach.
Virtustream cites one of the driving factors for this expansion as the strong demand from enterprise clients looking to migrate more of their production applications into the cloud to take advantage of cloud agility and economics. IDC and Gartner estimate that there are currently 85 million traditional enterprises applications in use today, which are expected to grow to 140 million by 2016. These applications were not explicitly written for use in the cloud and enterprise CIOs need cloud computing options for these mission-critical applications, while also being able to support new SaaS/cloud based applications.
"Due to high demand for our cloud services from our clients, we've brought forward plans, which will see our capacity double by mid 2014, to meet the growth in our business during the year," said Rodney Rogers, chairman and CEO of Virtustream. "This growth reflects our commitment to delivering world class cloud services to the market while remaining a preferred partner for our existing enterprise client base."
Virtustream is also actively seeking cloud service provider partners in new geographies to add to their global network. Virtustream recently announced partnerships with Mobily in the Kingdom of Saudi Arabia and EarthLink in the US.