"Verizon, however, enters a crowded field. International Business Machines Corp. and Hewlett-Packard Co. - often partners with the telco - offer traditional data center and computing services. Cisco Systems Inc. recently unveiled a virtualized data center for businesses. The increased competition has each company securing their grip on their customers. AT&T Inc., meanwhile, has a cloud storage service, and plans to offer its own computing service as well."
Verizon provides great detail on what it is attempting to do. Specifically Verizon states:
"Verizon Business introduced on Wednesday (June 3) the industry's most comprehensive on-demand, "cloud-based" Computing as a Service (CaaS) solution designed to meet the stringent security and performance requirements of enterprise customers.
Verizon CaaS is helping businesses and government agencies take advantage of cloud (IP-based) computing to more efficiently and securely manage IT resources - server, network and storage - to meet day-to-day business demands.
The service - which leverages Verizon's world-class global IP infrastructure and data centers - enables mid-market and larger companies to use a Web-based portal to employ computing resources in the quantities and duration dictated by their business needs. As a result, businesses pay for the resources used and avoid having to build out for peak capacity requirements by buying new equipment and adding staff."
The problem is that Verizon has an excellent telecom network but has consistently failed when it goes across the boundary into data. One need look no farther than the Genuity fiasco, the old BB&N acquisition that was managed by Verizon execs who had not the faintest idea as to what they were doing. Thus in my opinion based on having been inside Verizon in one of its earlier incarnations and also having tried to deal with Genuity and the ilk I would have serious concerns as to any such outsourcing, yet Verizon in my opinion far exceeds any cable company in this field who themselves may see this as an opportunity.
In the late 1990s in the dot com boom there was an explosive growth of data centers, which have morphed into cloud centers. No material difference but since the past is prelude there was an over expansion then by marginal players and there will clearly be an over expansion again. This in my opinion is not a wise move for Verizon, focus on fiber and wireless and stay out of where you have no proven excellence.
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