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And Verizon stood by that investment promise, closing out fiscal 2010 with reported capital expenditures totaling $16.5 billion for the year. In 2010's fourth quarter, Verizon's sales of strategic enterprise services, which include cloud computing services, rose 7.5 percent since the fourth quarter 2009 and its total enterprise revenue totaled $4 billion.
Along with new services coming in 2011, Verizon is also building out new partnerships to make itself a household cloud name. Where 2010 saw Verizon team up with VMware for hybrid clouds and virtualization capabilities, 2011 will see a host of new partnerships emerge as its cloud portfolio grows. Verhoeven called Verizon's partnership model "integral" to its continued growth.
Verizon recently launched a partnership with Google Apps where Verizon Business SMB customers have access to Google Apps for Business, which gives SMB customers access Gmail, Google Calendar, Google Docs, Google Sites, Google Video and more.
"Most of Verizon's service offerings are in the cloud and delivered to any business connected to the Internet with a click of the mouse," wrote Monte Beck, vice president of small business marketing, at Verizon wrote in a blog post highlighting the Google pairing. "So it makes sense for us to offer Google Apps for Verizon to allow businesses to communicate and collaborate in the office or on the go."
Verhoeven added that with its legacy in networking, Verizon is in the unique position to offer myriad services and tie in cloud computing, whether that is collocation, networking or any numerous other offerings.
"When we look at cloud, we don't look at that as the end game," he said. "Most of the customers that come to us don't just want the cloud."
Verhoeven said that as the momentum carries from 2010 into 2011, Verizon will continue to educate customers on the cloud and its benefits, an area where he said Verizon fell short in 2010. He said that the market perception of cloud services has largely been created by Verizon's competitors, like Amazon Web Services.
"One of the struggles we have is the education process," he said, adding that some customers "simply don't understand what the cloud needs."
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