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Verizon: Cloud Users Seek 'Best of Breed'

Carol Wilson
10/30/2014

Enterprises are getting more comfortable with cloud services and with using different clouds for different applications, putting more emphasis on the ability to both connect and deliver cloud services, according to the latest Verizon study of enterprise cloud usage.

The 2014 Verizon State of the Enterprise Cloud report, which can be viewed here, points to new opportunities for companies like Verizon Communications Inc. (NYSE: VZ), that offer both cloud services and the network that interconnects them, says Siki Giunta, senior VP-Cloud and Connected Solutions at Verizon Enterprise Solutions .

The same report is being widely covered for revealing a corporate IT "take-back" of cloud services, as it shows IT managers now control more than half of the enterprise spending on cloud. That is driving Verizon to focus on the corporate IT segment as "customer one" for cloud, Giunta says.

She also points to the declining worries about security in the cloud -- even a year ago, that was among the top concerns for those considering moving corporate apps and data into this new service approach. Now there is more focus on portability and being able to get the "best-of-breed" cloud service for each application or service, she notes.

"We see an evolution of enterprise IT becoming cloud brokers," Giunta says. "They are much more empowered with their processes that are focused on how to acquire cloud, how to evaluate cloud -- their sourcing is much more evolved. We have seen enterprise IT departments have started very seriously to do portfolio analysis" that looks at the best provider for a specific app or workload.


Our 'OSS & BSS in the Era of SDN and NFV' event looks closely at this key transition. You can check it out here on Light Reading.


Not surprisingly, Giunta thinks this shift favors companies such as Verizon because the networks that connect the diverse clouds become more important and, along with other major telecom players, Verizon has been developing more advanced services for the hybrid cloud world. (See Tata Tackles Hybrid Cloud Connections, AT&T NetBond Getting Amazon Ties, Verizon Puts Cloud Customers in Control and CenturyLink Launches Private Cloud Services in 57 Data Centers.)

But she also notes that the return of corporate IT to the process means tighter budgetary discipline and this is also an area where Verizon believes it has an edge.

"IT is rationalizing their portfolio," Giunta says. Instead of agreeing to support every version of every app, enterprises are looking for economies and pushing standardization, especially as greater mobility enters the picture and requires changes to the way apps are developed. "We can help them all the time to understand which workloads are easiest to migrate to the cloud and which ones are not," she comments.

— Carol Wilson, Editor-at-Large, Light Reading

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thebulk
thebulk
11/2/2014 | 10:43:50 PM
Re: RIP Rogue IT
@Mitch, I highly doubt we have seen the end o that. There will always be some department and some project that thinks they can do it better than IT. But then expect IT to support t when it all goes bad of course.
MikeP688
MikeP688
10/31/2014 | 9:53:31 PM
Re: head in the clouds
I think we both have been witness to all who have been the "leading lights" and then fizzled out.   I can't help but remember Ed Mccraken (anyone remember him) chidding Bill Gates.  All have to remember the lessons of SGI.

Wishing you and the entire community a fab Halloween Day Week-End--and looking forward to the continued ever so vibrant deliberations before us.  :-)
MikeP688
MikeP688
10/31/2014 | 9:53:31 PM
Re: head in the clouds
I think we both have been witness to all who have been the "leading lights" and then fizzled out.   I can't help but remember Ed Mccraken (anyone remember him) chidding Bill Gates.  All have to remember the lessons of SGI.

Wishing you and the entire community a fab Halloween Day Week-End--and looking forward to the continued ever so vibrant deliberations before us.  :-)
Mitch Wagner
Mitch Wagner
10/31/2014 | 2:13:20 PM
RIP Rogue IT
Interesting to see IT taking back control of cloud. I wonder if this means the end of rogue IT, where business goes around IT to implement cloud services. Selling to IT is likely to be a sales cycle carriers are more comfortable with.
Phil_Britt
Phil_Britt
10/31/2014 | 1:44:38 PM
Cloud Security Still a Big Concern
I'm not sure how much concern over cloud security is waning. It could just be a case that non-cloud platforms (think Target, Home Depot, Jimmy John's and whatever security breach is reported next week) are constantly reporting hacks, so the security concern has just become higher in these instances in relation to the cloud.
thebulk
thebulk
10/31/2014 | 9:53:26 AM
Re: head in the clouds
I think innovation is a 4 letter word for providers.
MikeP688
MikeP688
10/31/2014 | 3:41:01 AM
Re: head in the clouds
Agreed--however if they don't innovate and stay relevant, one would never know.   
thebulk
thebulk
10/31/2014 | 3:26:23 AM
Re: head in the clouds
I think they will fare better than the Titanic, they hight hit a few ice bergs, but I doubt they will sink so rapidly. 
MikeP688
MikeP688
10/31/2014 | 12:42:28 AM
Re: head in the clouds
Point taken--I will never forget how someone used the Titanic Analogy when I was complaining about lack of assertive decision making--and we all knew what ultimately happened to the Titanic.    They need to learn, recognize and be ready to adapt--or they will die.   
thebulk
thebulk
10/31/2014 | 12:35:48 AM
Re: head in the clouds
With companies this large it's difficult to imagine agility being part their offerings.
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