Virtela Technology Services

Virtela Technology Services, now operating as a core component of NTT Global Networks, was established in 2000. The company was founded by Vab Goel, who brought significant experience from his previous role as Vice President of IP Network Engineering and Advanced Technology at Qwest. B.V. Jagadeesh, a serial entrepreneur with a background in pioneering internet data centers with Exodus Communications and application delivery with NetScaler, was also a founding investor.

The company pioneered an "asset-light" approach to enterprise networking. Instead of building its own physical network infrastructure, Virtela developed a Virtualized Overlay Network and an Enterprise Services Cloud (ESC) platform. This model allows it to deliver managed network and security services by leveraging the infrastructure of various carriers, which distinguished it from traditional providers and enabled significant cost savings for clients. Virtela's business model is centered on providing managed services to enterprises, focusing on software-defined wide area networking (SD-WAN), security, and cloud connectivity. The firm generates revenue by offering these services, which help clients manage the complexities of their global networks, improve application performance, and enhance security for cloud-based applications.

A significant milestone in Virtela's history was its acquisition by NTT Communications in a deal announced in October 2013 and finalized in January 2014 for approximately $525 million. This acquisition was a strategic move for NTT Com to expand its global network service coverage to over 190 countries and to integrate Virtela's expertise in network functions virtualization (NFV). Post-acquisition, Virtela’s technology became instrumental in enhancing NTT's Arcstar Universal One enterprise network services and accelerating the deployment of NFV-based offerings. This integration allowed the combined entity to offer a single source for a wide range of services, from branch office networking to large-scale cloud migration.

Keywords: managed network services, SD-WAN, network functions virtualization, cloud connectivity, enterprise networking, global network services, network security, asset-light networking, application acceleration, IT infrastructure services