-
Verizon is getting into the multi-cloud management game with Cloud Management
-
The solution is built on top of its network-as-a-service (NaaS) platform
-
IDC’s Courtney Munroe said the move marks a shift in Verizon’s cloud networking strategy
Verizon is putting the VMwares, Aviatrixes and Prosimos on notice. This week the operator launched a play to become the multi-cloud management platform of choice for enterprise customers.
At the core of its effort is the aptly named “Cloud Management” solution, which is based on Verizon’s network-as-a-service (NaaS) platform. Like pretty much every other multi-cloud solution out there, Verizon claims its product provides connectivity to all the major cloud providers (AWS, Google, Microsoft, Oracle and IBM) and a platform that allows enterprises to use a common toolset to manage security, policy and more across clouds.
But while it might seem like more the same old multi-cloud mumbo jumbo, IDC VP of Worldwide Telecommunications Research Courtney Munroe told Silverlinings the move is actually a significant one given who is making it.
“This is an aggressive move by Verizon to capture share of a growing segment,” he said.
"The telcos have been on the defensive in cloud networking for a while. The cloud providers, colocation and software segment have all leveraged the opportunity presented by hybrid and multi-cloud networking." he continued. "Verizon has responded with its own software-defined portfolio, which in combination with its network and global reach via partners like Equinix, offers a comprehensive solution that no single segment can match.”
Indeed, Debika Bhattacharya, chief product officer at Verizon Business, pitched the product as a “natural extension” of its NaaS offering, which made its debut in 2020. Except now, instead of stopping at the of the cloud, Verizon is extending its networking and management capabilities within and across clouds.
“We are not the cloud provider, that’s not the intent. But connecting to the cloud is becoming more intense,” she explained. “Trying to connect multiple applications to multiple cloud providers and doing it in a way that is manageable is a very difficult task.”
By providing a common toolset and management, Bhattacharya said Verizon will remove the need for individual configuration for each app going into each cloud provider.
Though she couldn’t size the multi-cloud revenue opportunity for Verizon, she noted somewhere in the realm of 90% of large enterprise customers she’s spoke with have two or more clouds and at least 70-ish% have three or more. That means there are plenty of businesses buying what the operator is selling.
She added Verizon has a sales funnel of roughly $1 billion for its NaaS platform, suggesting it may have a strong base into which it can begin selling the Cloud Management product. The funnel consists of “real opportunities” with customer proposals in various stages of discussion, Bhattacharya said.
That’s good news considering Verizon’s Business segment has been struggling with steady declines. Most recently, it posted a 3.6% year on year slide in revenue to $7.6 billion in Q4 2023.
We'll be watching closely to see how it all pans out for Verizon, and whether other operators follow suit.