Verizon’s New Public Cloud Takes Aim at Amazon, Rackspace

By Jeffrey Burt  |  Posted 2013-10-04 Print this article Print

Verizon officials hope to use a combination of greater flexibility, better performance and better price models to differentiate their platform from other cloud offerings.

Greg Miller, an analyst with Canaccord Genuity, believes Verizon is positioning itself to become a “formidable competitor” in the public IaaS space and “that a successful launch of Verizon Cloud will help drive the recovery of enterprise revenue growth in 2014 and possibly pressure competitors in the space.”

“Through in-sourcing a key software component and utilizing less expensive hardware, the company expects to lower costs and become more price-competitive in the public cloud market, a key issue in our view, especially with small and midsize customers,” Miller wrote in an Oct. 4 research note. “With more competitive pricing, we believe Verizon will likely garner more wallet share.”

Verizon’s current cloud reportedly includes hardware from Cisco Systems through its Unified Computing Systems, server blades from Hewlett-Packard and virtualization technology from VMware. However, details about the hardware infrastructure for the Verizon Cloud offering were scarce.

Verizon Cloud comprises two components: Verizon Cloud Compute—the IaaS platform—and Verizon Cloud Storage, an object-based storage service. Verizon Cloud Compute is all about speed and performance, with the ability to create virtual machines in a matter of seconds, and users building what they need and paying for what they use. Customers can set performance levels for virtual machines and networks, configure storage performance and attach storage to multiple virtual machines, a level of control that other cloud services don’t offer, officials said.

The IaaS platform can handle not only enterprise demands, but also those from midsize and smaller companies, or even individual IT departments and software developers.

Verizon Cloud Storage is a multitenant platform that enables storage accessibility from anywhere on the Web, and reduces latency issues that Verizon officials said hampered traditional storage solutions.

Canaccord Genuity analyst Miller said the flexibility inherent in the Verizon Cloud will be an advantage for the company.

“As the new Verizon Cloud service would allow convenient online provisioning and deployment of virtual machines, network and storage configurations … the new, more flexible offerings will attract more small and midsized enterprises, further expanding its potential addressable market in the rapidly growing public cloud sector,” he wrote.



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