& cplSiteName &

Verizon Looks to Bridge Amazon

Mitch Wagner
5/12/2014
50%
50%

Everybody knows Amazon is the market share leader in cloud services, but the extent of that lead is amazing -- Amazon Web Services Inc. has five times the computing capacity of 14 other leading cloud providers combined, and one third of Internet users visit a website powered by AWS daily.

Given that kind of lead, it seems hopeless to expect any other company to ever catch up, even if that company is a Tier 1 service provider such as Verizon Communications Inc. (NYSE: VZ).

And yet Verizon thinks it has a secret weapon. Amazon provides basic cloud infrastructure service capabilities, prized by small developers and webscale companies such as Netflix, says John Considine, CTO Verizon Terremark. It's a terrific service, he says. But Verizon thinks it can top Amazon by offering hosted enterprise applications and services, such as those developed by partners including Oracle, Cloudera, NetApp, and F5. Enterprises can bring their familiar application and network environments to Verizon's Enterprise Cloud.

Of course, Verizon isn't exactly a small startup: It is building out its cloud platform in seven data centers globally, across the US, South America, and Europe. Its recent secure Cloud Interconnect connects enterprise private networks into Verizon's and other providers' clouds.

Verizon faces stiff competition, not just from Amazon, but from other service providers, which have their own enterprise cloud services.

To find out more about Verizon's plans to compete in the demanding enterprise cloud market, see my Prime Reading feature, Verizon Brings Thunder to the Cloud.

— Mitch Wagner, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profileFollow me on Facebook, West Coast Bureau Chief, Light Reading. Got a tip about SDN or NFV? Send it to wagner@lightreading.com.


Want to learn more about SDN and the transport network? Check out the agenda for Light Reading's Big Telecom Event (BTE), which will take place on June 17 and 18 at the Sheraton Chicago Hotel and Towers. The event combines the educational power of interactive conference sessions devised and hosted by Heavy Reading's experienced industry analysts with multi-vendor interoperability and proof-of-concept networking and application showcases. For more on the event, the topics, and the stellar service provider speaker lineup, see Telecommunication Luminaries to Discuss the Hottest Industry Trends at Light Reading's Big Telecom Event in June.


(12)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
bobrien
100%
0%
bobrien,
User Rank: Light Beer
5/22/2014 | 7:30:02 PM
Re: Get a Clue
Randy covered this pretty well. Pets = virtualization2.0/VMware/Oracle/EMC/Cisco, classic big enterprise gear & ultimately only yeilding hype on cost savings (effectively business as usual). Cattle = cloud/Supermicro/Quanta/Arista/KVM/Ceph/openStack/Cassandra & gain cost efficiencies in infrastructure. This accounts for most of the cost of telecom HA deployments. Many vendors are redesigning their applications for the cattle model and telcos that adopt that model will be able to see massive horizontal scale out, better availability/SLA's and data durability.   

Overall, it's a not a good or bad thing, rather reflects an architectual & operations cultural decision. Are you looking for the massive scale, efficiency and speed of something like Google or Facebook, and Amazon? Is it attractive to your product team to deploy new products or enhancements weekly, while lowering prices multiple times a year across your portfolio? That requires a different architecture across the board and culture change. Most won't have the stomach or vision and NFV merely becomes a check box they can check because they deployed a firewall or router vm in their existing vmware pods.

 
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/20/2014 | 12:05:53 PM
Re: Get a Clue
Bobobrien - Interesting. What are pets and why are they bad?
bobrien
50%
50%
bobrien,
User Rank: Light Beer
5/17/2014 | 6:18:52 PM
Re: Get a Clue
FakeMitchWagner - Check out http://cloudscaling.com/blog/cloud-computing/pets-vs-cattle-the-elastic-cloud-story/. Randy's blog is excellent if you have time to read past blogs. Few telco's will deploy clouds actually built like google or amazon. Interestingly, most NFV architectures from the big telcom vendors leverage openstack, but then inflate their infrastructure costs by buying "Pets". Thus, vendors recover revenue loss from the commodization promised by SDN, with "Pets", bloated NFV Software suites and PS engagements. The more things change the more they stay the same. LOL.
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/17/2014 | 4:37:35 PM
Re: Get a Clue
bobrien - What do you mean by the "'pets vs. cattle' thing"?
bobrien
50%
50%
bobrien,
User Rank: Light Beer
5/16/2014 | 4:11:14 AM
Get a Clue
I would invite you and folks at Verizon to visit the AWS Marketplace and HW VPC pages. https://aws.amazon.com/marketplace/ref=gtw_navhdr_header/183-6116729-7353030 & https://aws.amazon.com/vpc/

Until Telco's really understand the whole "pets vs cattle" thing, they can merely imitate Amazon but will never beat them at price, scalability and speed to market.  
brookseven
100%
0%
brookseven,
User Rank: Light Sabre
5/13/2014 | 3:21:01 PM
Re: Seems like a natural
mhhf1ve,

I disagree with your opinion.  Amazon is productizing and selling what it is doing for itself.  That several hundred million in R&D is what does AWS.  There is essentially no telco R&D.

seven
mhhf1ve
50%
50%
mhhf1ve,
User Rank: Light Sabre
5/13/2014 | 2:57:41 PM
Re: Seems like a natural
Big telcos *ARE* a natural fit.. the challenge for them, though, will be in distinguishing their offerings from all the other big company cloud services. Amazon has a big lead and has grown its userbase and it has a reputation for reliability. Will Verizon's reputation as a telco spill over into how developers perceive it as a cloud service provider? Microsoft was a similar "problem" in that it can offer a cloud solution, but "cool" developers are oftentimes anti-MSFT (and anti-monopolist in general), so Verizon may not be able to absorb "cool" developers from Netflix or other tech startups. 
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/13/2014 | 1:38:25 PM
Re: Seems like a natural
Good point about being potentially late to market. Verizon and the other carriers may be willing to cede the IaaS/PaaS market to Amazon for now, and focus on the enterprise market. But HP, IBM, and others are also going after the enterprise market, and HP/IBM/etc. have the services relationship with enterprises on the application level that the carriers lack. So the carriers may find themselves squeezed out. 
ponnnn
100%
0%
ponnnn,
User Rank: Lightning
5/13/2014 | 9:04:13 AM
Re: Seems like a natural
My concern is if these companies are too late?  Amazon launched AWS in 2006.  8 years ago.  They captured most of the early movers, but are now focusing on the broader market.  For example: http://www.infor.com/company/news/pressroom/pressreleases/CloudSuite/

Microsoft has a leg up compared to carriers as well I think.  I don't know too much about their cloud offering but I think that it probably is a good choice if you use Microsoft products. 

I honestly think carriers are goign to have a hard time here.  They may be able to build their own private clouds for hosting VNF, but even if they do well there it doesn't mean that they will be good enough at the cloud part to succeed in selling that as its own offering.

I guess the key thing is whether the network comes down to being an advantage.  My experience with AWS suggests their network is pretty darn good.  There is not dedicated bandwidth, it is all best effort, but in my experience this has been rather adequate.  They charge for every bit you send between their own data centers so they have a nice incentive to make sure they have enough bandwidth to move those bits.  That leaves the connection from your office to the cloud as the bottleneck.  The traditional carries in most cases own this link, but there is no real reason they can deliver better connections into AWS vs their own cloud data center.  In fact while you won't see AT&T or VZ on the list, many carries are already offering connections to AWS: https://aws.amazon.com/directconnect/partners/  
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/12/2014 | 5:55:59 PM
Re: Seems like a natural
jabailo - Not just HP – IBM and most of the Tier 1 and many smaller carriers are getting into cloud. It's the place the market is going, and smart technology companies stay ahead of that. 
Page 1 / 2   >   >>
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
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 Custom TV
Cable & the Move to IPTV

5|31|16   |   04:44   |   (0) comments


Cable operators are looking at transitioning operations to IPTV, and some have already started. What issues do operators face? What opportunities will this bring to customers? These are just a few of the questions Alticast considers in this interview between Alan Breznick and Susan Crouse at INTX 2016.
LRTV Custom TV
Ooredoo at UBBS 2016

5|31|16   |   06:04   |   (0) comments


At UBBS 2016 in Dubai, Light Reading is joined by Ooredoo Qatar's Yann Courqueux for an in-depth interview on their success.
LRTV Custom TV
du's Success Infrastructure

5|31|16   |   11:48   |   (0) comments


At UBBS 2016 in Dubai, Light Reading is joined by du's Jasim Alawadi for an in-depth interview on deploying all types of technology.
LRTV Custom TV
What Is Customer Experience Management?

5|31|16   |   05:53   |   (0) comments


At UBBS 2016 in Dubai, Light Reading is joined by Huawei's Michael Spratt for an in-depth interview on customer experience management.
LRTV Custom TV
UBBS 2016 World Tour Highlight

5|31|16   |   02:43   |   (0) comments


At UBBS World Tour 2016 in Dubai, Light Reading takes an exclusive look at the latest Huawei technology and the future of broadband.
LRTV Interviews
Getting Somewhere With TV Everywhere

5|31|16   |   7:08   |   (0) comments


Comcast's Vito Forlenza describes the progress his company is making with TV Everywhere and the challenges that remain.
LRTV Custom TV
Cisco's Innovations in Cable

5|26|16   |   03:18   |   (0) comments


Marc Aldrich from Cisco discusses the latest in security, the evolution and momentum for CCAP and what the industry will be seeing next from Cisco.
LRTV Documentaries
Leading Lights 2016 Highlights

5|25|16   |   02:26   |   (1) comment


Some of the high points from this year's Leading Lights awards dinner at the Hotel Ella in Austin, Texas.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for ...
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
Cisco's Patel Hails 'Microculture' Successes
Iain Morris, News Editor, 5/26/2016
Cable Is Eyeing Its Retail Options
Mari Silbey, Senior Editor, Cable/Video, 5/25/2016
AT&T's Margaret Chiosi Retires
Ray Le Maistre, Editor-in-chief, 5/25/2016
West Coast Gets Its First 10-Gig City
Mari Silbey, Senior Editor, Cable/Video, 5/26/2016
IEEE President-Elect Tackles the Digital Divide
Sarah Thomas, Director, Women in Comms, 5/30/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
Please Pass the Waterproof Phone Click Here
Walruses: more tech-savvy than you might think.
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.