8x8 expands cloud services, buys Zerigo

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8x8 Inc. (NASDAQ:EGHT), which has increasingly expanding its services to the cloud, today announced it has acquired Zerigo, Inc, a Littleton, Colo.-based company providing virtual private servers, managed DNS services and monitoring tools for cloud-based server operations. 8x8 said the deal, terms of which were not disclosed, closed last Friday.

"Zerigo's software technologies will greatly enhance the capabilities of 8x8's cloud hosting services by providing real-time provisioning and elasticity of our compute services," said Bryan Martin, chairman and CEO of 8x8. "We are excited to make Zerigo's existing technologies available to our customers and plan to extend them to our enterprise-class private cloud and VMware offerings. The Zerigo acquisition will significantly advance our research and development activities in this area."

The deal for Zerigo and its cloud expertise should come as no surprise, as 8x8 has been very public about its intent to grow its cloud-based offerings through both organic and inorganic activities.

A year ago, 8x8 acquired Central Host for $1 million and 432,276 shares of stock, which added managed hosting and cloud computing services to its base, as well as some new customers.

In addition to existing relationships with customers such as Salesforce.com subsidiary Heroku, the leading Ruby platform as a service (PaaS), the Zerigo acquisition provides 8x8 with expanded cloud computing capabilities designed to help businesses lower their IT infrastructure costs and management requirements while improving performance and flexibility.

Zerigo provides customers with virtual private servers on a monthly basis and cloud servers on an hourly basis, utilizing its internally developed virtualization technologies. In addition to native IPv6 connectivity, Zerigo solutions support 32- and 64-bit versions of popular operating systems with RAID-10 storage and self-service server provisioning, upgrades and downgrades in real time. Zerigo's hosted DNS service is geographically aware and enables automatic management of virtualized server resources worldwide, with support for all common DNS records and importing/exporting DNS name server records. Zerigo's Watchdog service provides 24x7 monitoring for all provisioned services with a central dashboard, pre-configured and customizable monitoring parameters, and a rich array of monitoring service checks. Zerigo's CEO, Tom Morgan, will join 8x8 as its Cloud Architect.

For more:
- see this release

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