& cplSiteName &

Verizon Takes On Amazon With SMB Cloud Offer

Carol Wilson

Verizon Enterprise Solutions is going head-to-head with Amazon Web Services Inc. , Rackspace (NYSE: RAX), and other Web-based cloud computing providers with the launch today of a pay-as-you-go Computing as a Service (CaaS) offering aimed at small to mid-sized businesses (SMBs).

Verizon says the new service brings the best of its enterprise CaaS offerings -- it's based on VMware Inc. (NYSE: VMW), is fully redundant, and highly secure -- but has no contract terms or minimum commitments and can be ordered through a simple Web interface.

Although Verizon developed its own enterprise CaaS offering with VMWare, the carrier opted to work with Verizon Terremark , a cloud computing services provider, to offer its new CaaS service for SMBs. (See Verizon, VMware Create Cloud Services and Verizon Offers Cloud Lessons.)

"We are bringing to market a cloud computing service specifically designed for the needs of our small to mid-sized business customers," says Patrick Sullivan, director of mid-tier product marketing for Verizon. SMBs have the same needs for cloud computing as larger businesses -- they need to expand their computing capacity without investing capital in servers and hiring technical staff, but they are more cautious of committing to a term service.

Working with Terremark will enable Verizon to get into the market more quickly than if it had developed its own SMB offering from scratch, says Melanie Posey, research vice president for IDC .

"They had a choice -- get something into the market now, or wait to roll their own and take a chance that Amazon and others would take this market," Posey says. "Amazon is already out there with traction and market momentum, so Verizon has to get going right now."

Verizon contends it has some advantages over other Web-based cloud computing offerings, including: its use of the VMWare Hypervisor for redundancy and resilience; the deployment of load balancers for performance; Verizon's in-house security, including firewalls; the ability to create custom access lists for data; and the option to turn down cloud computing capabilities but not delete created content, allowing the customer to shift instead to a cloud-based storage offering.

SMBs may also be more comfortable working with Verizon, says Jeff Kaplan, managing director of consultancy THINKstrategies Inc.

"Some SMBs will be more comfortable buying CaaS from Verizon because of their established relationship with the company and greater confidence in the long-term viability of its services," Kaplan says.

That includes having established relationships with Verizon's customer services operations, where staff are trained to deal directly with customers on the phone, adds IDC's Posey. "That's not always the case with Web-based services," she suggests.

Verizon's SMB sales force will be bringing the product to its customers, telling them how they can click one button on the Verizon services Web page to purchase on-demand computing, Sullivan says.

The service is billed monthly, in hourly increments, based on credit card numbers entered and verified at the outset. After payment information has been secured and other security checks run to make sure the purchase is legit, an SMB can be up and running, configuring virtual servers, within 15 minutes, Sullivan says.

Pricing is as low as 3.7 cents per hour, with no minimum usage conditions or term plans, and all charges can be reviewed and accepted at the time the purchase is made.

Verizon's expectation is that SMB customers that start out using the pay-as-you-go plan could well graduate to other CaaS options in the Verizon portfolio, and even migrate their own applications onto Verizon's cloud platform.

Typical SMB applications for CaaS could include the development of Web-based services and the provision of supplementary computing resources to help such businesses as retailers or travel agents to cope with seasonal demand.

— Carol Wilson, Chief Editor, Events, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Light Beer
12/5/2012 | 4:23:48 PM
re: Verizon Takes On Amazon With SMB Cloud Offer


Don't they have the wrong enemy?  Amazon produces bare servers for you to manage.  If you are an SMB, would you not be better off on Google Apps as you don't have to sys admin the servers?




From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
CenturyLink: Let's Get Past SD-WAN Hype

6|23|17   |   04:02   |   (0) comments

Technology becomes a "shiny object" unless it's properly focused on solving business needs for enterprise customers, says Bill Grubbs, network solutions architect for CenturyLink. He explains to Light Reading why SD-WAN deployments have to be tailored to specific needs – and more.
Women in Comms Introduction Videos
Infinera's Sales Director Paints Tech's Big Picture

6|21|17   |   4:14   |   (1) comment

Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
LRTV Custom TV
SD-WAN Innovation & Trends

6|20|17   |     |   (0) comments

Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
LRTV Interviews
Ovum's Dario Talmesio on 5G in Europe

6|20|17   |   02:16   |   (0) comments

At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
LRTV Custom TV
Putting Power on a Pedestal

6|19|17   |     |   (0) comments

ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
LRTV Custom TV
Gigabit Access: The Last-Mile Pipe for All Future Services

6|19|17   |     |   (0) comments

A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
LRTV Custom TV
Key Factors to Successfully Deploy an SD-WAN Service

6|19|17   |     |   (0) comments

As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
LRTV Custom TV
IoT Solutions: Rational Exuberance

6|19|17   |     |   (0) comments

IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
LRTV Custom TV
Realizing ICN as a Network Slice for Mobile Data Distribution

6|19|17   |     |   (1) comment

Network slicing in 5G allows the potential introduction of new network architectures such as Information-centric Networks (ICN) as a slice, managed over a shared pool of compute, storage and bandwidth resource. Services over an ICN slice can benefit from many architectural features such as Name Based Networking, Security, Multicasting, Multi-homing, Mobility, ...
LRTV Interviews
Ovum's Mike Roberts on 5G Uptake

6|19|17   |   04:08   |   (0) comments

Mike Roberts, research director for Ovum's service provider markets group, explains why he has boosted his 5G subscriptions forecast.
LRTV Interviews
AT&T's Hubbard on Intersection of SD-WAN & MPLS

6|15|17   |     |   (0) comments

Rick Hubbard, SVP of Network Product Management for AT&T Business Solutions, discusses how AT&T's approach to SD-WAN fits in with its overall virtualization strategy, explains how SD-WAN can improve enterprise customers' use of the cloud and addresses the intersection of SD-WAN and MPLS.
Telecom Innovators Video Showcase
Keep Connected IoT Devices Under Control With Allot

6|15|17   |     |   (0) comments

Allot AVP of International Pre-Sales, Daniel Keidar, explains how communications service providers can protect infrastructure and service availability from flooding attacks caused by malfunctioning or bot-infected devices connected to their network.
Upcoming Live Events
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Montcalm Marble Arch
November 1, 2017, The Montcalm Marble Arch
November 30, 2017, The Westin Times Square
All Upcoming Live Events
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Netflix's Lesson in Culture Expectation Settings
Sarah Thomas, Director, Women in Comms, 6/21/2017
No Imagination: UK Chip Biz Goes Up for Sale
Iain Morris, News Editor, 6/22/2017
Kalanick Steps Down as Uber CEO
Sarah Thomas, Director, Women in Comms, 6/21/2017
BT Tech Chief Makes Plea to 5G Chip Vendors
Ray Le Maistre, International Group Editor, 6/20/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.