Light Reading

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 LLC 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
Flash Poll
From The Founder
Ericsson's Hyperscale Datacenter System (HDS) 8000, featuring Intel's Rack Scale Architecture, caused a stir when it was announced at MWC 2015. For more on this revolutionary product, join me on Thursday, April 30 at 12:00 p.m. EST for a Super Webinar event, A New Hardware Paradigm for the Telco Data Center.
LRTV Documentaries
CableLabs' Clarke Updates Cable Virtualization

4|23|15   |   05:41   |   (1) comment


Former BT exec now leading CableLabs' NFV and SDN efforts explains key role of open source and updates efforts to virtualize the home network.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. II

4|23|15   |   08:19   |   (1) comment


In the second installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about cultural change, network slicing and technology advances.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. I

4|23|15   |   09:27   |   (3) comments


In the first installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about the incredible transformation underway in the communications networking industry.
LRTV Documentaries
LTE Paves the Way for the 5G Revolution

4|20|15   |   4:20   |   (0) comments


Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
LRTV Huawei Video Resource Center
Huawei's Data Center Power Play

4|15|15   |   6:22   |   (0) comments


Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
LRTV Huawei Video Resource Center
Huawei’s Routers, Switches Get the Green Mark

4|15|15   |   2:02   |   (0) comments


TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
LRTV Documentaries
A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

4|15|15   |   3:17   |   (0) comments


Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
LRTV Huawei Video Resource Center
Accounting for Better Solutions

4|10|15   |   02:31   |   (1) comment


Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
LRTV Huawei Video Resource Center
What's in Store for Huawei & DataCore?

4|10|15   |   05:44   |   (0) comments


At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
Upcoming Live Events
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
In its latest survey covering network operators' plans and strategies for ICT transformation, Heavy Reading asked telecom operators worldwide to identify the most important goals and objectives for their ICT transformation initiatives. Heavy Reading also asked operators about the importance of a "digital first" strategy, which enables customers to complete an interaction across different digital channels, such as web and mobile self-service and social media.
Hot Topics
What if the Comcast Merger Fails?
Mari Silbey, Independent Technology Editor, 4/20/2015
Google's WiFi-First Mobile Service 'Fi' Is Here
Dan Jones, Mobile Editor, 4/22/2015
Comcast Merger May Hinge on Hulu
Mari Silbey, Independent Technology Editor, 4/22/2015
Comcast Formally Ends Its Bid for TWC
Mari Silbey, Independent Technology Editor, 4/24/2015
Google Ready to Release Thousands of Loons
Sarah Thomas, Editorial Operations Director, 4/20/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Many leading communications companies can claim to have undergone significant periods of reinvention during their histories, but none have been through more major ...
Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
Cats with Phones
Learning Curve Click Here
Pierre could never remember how to use Excel.
Latest Comment