Verizon Enters Cloud Computing Market, Takes on Big Players

Verizon Communications is launching its internet-based computing service, a move that marks the telecom giant's entry into the cloud computing market. The company's computing-as-a-service platform will allow business customers to scale up their computing power, data storage, and network bandwidth on demand. Verizon's vice president of global managed solutions, Michael Marcellin, claims that the company's reliability and security features will set it apart from competitors.

The telecom carrier has been developing its cloud service for more than two years and has acquired Cybertrust, a company that provides managed network security services, in 2007. Verizon's move into cloud computing is aimed at offsetting falling prices for voice and data transport with value-added services. The company plans to offer pricing that is competitive, but not a price leader, with a focus on packages and services.

Key Takeaways:

• Verizon is launching its computing-as-a-service platform to compete in the cloud computing market, which includes big players like IBM, Cisco, and Amazon.
• The company's service will allow customers to scale up their computing power, data storage, and network bandwidth on demand, and provide reliability and security features.
• Verizon has been developing its cloud service for more than two years and has acquired Cybertrust to provide managed network security services.
• The telecom carrier plans to offer pricing that is competitive, but not a price leader, with a focus on packages and services.
• Verizon's vice president of global managed solutions, Michael Marcellin, claims that the company's cloud service will provide significant cost savings for traditional IT environments.

Statistics:

• Verizon has been developing its cloud service for over 2 years.
• The company acquired Cybertrust in 2007, a company that provides managed network security services.
• According to a study by Gartner, the economic downturn could spur more companies to outsource processes such as e-commerce, payments processing, and human resource to internet-based computing platforms.
• A study by McKinsey found that companies might still be better off with in-house data centers.

Sources:

• Verizon Communications press release (no date mentioned)
• Article by Counsel Broders, Current Analysis analyst (no date mentioned)
• BT Group press release (no date mentioned)
• France Telecom press release (no date mentioned)
• Gartner study (no date mentioned)
• McKinsey study (no date mentioned)