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Cloud Services

Verizon Says Focused Cloud Strategy Working

Having once harbored ambitions of taking on Amazon Web Services in the cloud, both AT&T and Verizon Enterprise Solutions are now happily focused on the enterprise space and on customers specifically looking for high reliability and security in accessing multiple clouds in a hybrid environment.

Neither company has proven able to compete with the likes of Amazon Web Services Inc. or Microsoft Corp. (Nasdaq: MSFT) -- nor has any other telecom provider. The most recent Synergy Research Group Inc. report on cloud market share showed AWS still is larger than all of its cloud competitors combined at 28% market share. Microsoft is second at 10%, IBM Corp. (NYSE: IBM) third at 7% followed by Google (Nasdaq: GOOG) (5%), Salesforce.com Inc. (4%) and Rackspace (3%). The telecom players fall into the remaining 43% of the market pool, with smaller individual shares.

But as more enterprises and small to mid-sized businesses are growing comfortable moving workloads into the clouds and relying on cloud-based apps, the two largest US telecom service providers say they are able to steadily grow their business.

In separate interviews with Light Reading, the head of Verizon's cloud operations and the newly appointed vice president of cloud and cloud networking for AT&T Business Solutions both said they see their cloud operations as successful and point to significant growth in the enterprise space, based on tying together their networks and clouds and providing secure access to other clouds.

That's not to say their strategies are identical. This first story in a two-part series will focus on Verizon Enterprise Solutions , and the perspective of Siki Giunta, senior vice president of cloud and M2M solutions.

Verizon's Siki Giunta

Giunta stepped in to lead Verizon's cloud team after the company had assembled a cloud infrastructure, largely through acquisition of Terremark, and launched its own integrated cloud platform, in the fall of 2013. From the outset, her goal was an integrated service that unified its cloud assets, spanned the Verizon wireline and wireless businesses, including the Internet of Things, and gave customers more control and ease-of-use in navigating the cloud universe through a single console. (See Verizon Makes Integrated Services Push Around Cloud and Verizon Puts Cloud Customers in Control.)

Next page: How her plans are working

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Bayou Mtn 5/14/2015 | 6:05:26 PM
Savvis/CenturyLink Carol, surprized that you did not include CenturyLink's rather robust offerings?  (formerly Savvis, et al)
mwagner919 5/14/2015 | 2:18:20 PM
Specialization Specializing on cloud for enterprise makes sense for communications providers. And Giunta is right -- as the cloud market matures, it's going to fragment, giving providers an opportunity to compete with -- or thrive alongside -- Amazon.

Avoiding competition with Amazon is wise. Amazon is the low-cost, high-volume option, which is a brutal segment to be in for any business.
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