Optical/IP Networks

Verizon Keeps Terremark Brand on Cloud

Terremark will differentiate itself in the crowded cloud field in part by what it doesn't try to deliver as a cloud service, says Kerry Bailey, the man named president of the new Verizon Communications Inc. (NYSE: VZ) subsidiary.

With its major relaunch this Thursday, Verizon Terremark becomes the new home of the existing Verizon Enterprise Solutions cloud services, along with its managed security offerings and professional services. By locating all these assets in one IT-focused unit, Verizon intends to deliver a broad spectrum of services that includes -- but isn't limited to -- the cloud. (See Verizon Unwraps New Terremark Cloud Strategy.)

That puts the Terremark brand at the center of the new Verizon strategy, carrying the ball for what Bailey admits is a major transformation of enterprise and small to mid-sized business services. And it puts Bailey, who came to Verizon in its acquisition of Cybertrust four years ago, at the center of the IT-centric strategy. (See The Cloud Platform Makeover.)

"Not every application is moving to the cloud -- our customers tell us this," Bailey says. "There are a lot of providers out there who say cloud is everything -- we don't believe that is going to be the answer from a very pragmatic standpoint, from what CIOs are telling us."

Core to the Verizon strategy will be helping customers assess what applications gain speed to market or operating efficiencies by moving to the cloud, and which ones continue to sit in the traditional IT space or in collocation sites in between, and then providing services that connect, secure and scale this broad range of IT services and apps.

"Customers have put applications in our co-lo centers, they have applications we manage in our hosting environment, applications we manage on their prem[premise], all the way up to cloud," Bailey says. Delivering on the range of services is key to Terremark's future.

The other major differentiators will be things more common to a service provider telecom strategy -- security and performance quality. Based on the Cybertrust acquisition of four years ago, Verizon already has an extensive managed security portfolio as well as less common aspects of security such as identity management and regulatory compliance for retail and banking, to offer.

"We’ve got significant forensics capabilities, significant risk and compliance capabilities with more than 1,500 controls we have built into customers' environments," Bailey says. Proactive monitoring of potential threats, management of identities for access cloud services and protecting cloud data whether in transit or being stored in the cloud are other capabilities Verizon believes are uniquely strong in its offer.

By maintaining two brands -- Terremark as the IT-centric operation and Verizon as the network-centric piece -- Bailey believes his organization will be "be a little bit more agile and flexible going forward."

In addition to its IT-centric functions for enterprises and SMBs, Terremark will also be the cloud services resource for Verizon's mobile and consumer operations. Bailey sees major growth in the machine-to-machine space and ultimately in consumer video delivery as well, where Verizon already has launched a cloud-based offering. — Carol Wilson, Chief Editor, Events, Light Reading

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