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Verizon’s Terremark reportedly loses healthcare.gov contract (Mobile Minute)

Data center problems have reportedly been adding to the frustration of federal workers scrambling to improve the healthcare.gov website. The data center, run by Verizon Communication’s Terremark subsidiary, went down at least twice during October, according to Bloomberg. But even before the most recent problems, the government had decided to replace Terremark with Hewlett-Packard.

The Terremark contract runs through March, but Health and Human Services officials are already working to transition the website. Terremark has provided website hosting as well as data center services, and its contract awards related to the healthcare.gov website have totaled $55 million, according to The Wall Street Journal. Terremark continues to work with other federal agencies.

Verizon purchased Terremark for $1.4 billion in 2011, and at that time federal contracts represented roughly 20% of Terremark’s revenue. The group has provided data center services for the Federal Communications Commission and the Library of Congress.

ABOUT AUTHOR

Martha DeGrasse
Martha DeGrassehttp://www.nbreports.com
Martha DeGrasse is the publisher of Network Builder Reports (nbreports.com). At RCR, Martha authored more than 20 in-depth feature reports and more than 2,400 news articles. She also created the Mobile Minute and the 5 Things to Know Today series. Prior to joining RCR Wireless News, Martha produced business and technology news for CNN and Dow Jones in New York and managed the online editorial group at Hoover’s Online before taking a number of years off to be at home when her children were young. Martha is the board president of Austin's Trinity Center and is a member of the Women's Wireless Leadership Forum.