This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Private Cloud Is Alive, Thanks to Re-Sellers

NEW YORK ( TheStreet) -- Watch out, (AMZN - Get Report). The carriers may have found a way to eat some of your cloud lunch.


The market's assumption at the start of the year was that private clouds could not gain traction, because companies would rather buy cloud than try to build it themselves. So a bunch of startups are building private clouds for rent, and some are doing quite well at it.

The largest of AT&T's (T - Get Report) new cloud re-sellers is Breakthrough Technology Group, based in Morganville, N.J., and known as BTG. It started seven years ago selling AT&T Wireless' mobile phone services. BTG is now the largest of what the company calls its Managed Service Providers (MSPs), which use its network and facilities to deliver private cloud.

The MSP industry itself is sort of a muddle. Some firms calling themselves MSPs focus on machine-to-machine connections. Others do IT outsourcing. Others focus on mobile, which was BTG's original niche. A study from the IT Industry Association CompTIA last year called the MSP market "a work in progress".

BTG itself can be a little hard to find, even online. BTG is also the common name for British Telecom Group , for a health services company also run out of London, for a banking technology consultant in Jacksonville, and for a Swedish paper company. On the New York Stock Exchange BTG is the symbol for a gold company.

Founder Jeff Kaplan's original idea seven years ago was that corporations which wanted managed mobile resources would get them through his company, delivered through AT&T's network and with his management services layered on top of it.

That business is still doing well. This week BTG acquired CelPro Associates of New York City, renaming it BTG Mobility, so companies whose employees are bringing their own phones and tablets to work can still be made part of a corporate network.

But it's the cloud services that are taking off, Kaplan says.

BTG has servers in AT&T data centers in a co-location agreement. BTG runs those servers as private clouds, using what Kaplan calls "best of breed" solutions like Juniper (JNPR - Get Report) for security, NetApp (NTAP - Get Report) clusters for redundancy, Microsoft (MSFT - Get Report) Exchange for e-mail, Citrix (CTXS - Get Report) for desktop management and VMware (VMW - Get Report) for virtualization and server management.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AMZN $370.56 0.00%
CTXS $63.61 0.00%
JNPR $22.29 0.00%
MSFT $40.97 0.00%
NTAP $35.10 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs