Verizon Thursday gave the first glimpses of how it will move forward with its acquisition of cloud service provider Terremark, a multi-layered plan in which Verizon said the channel will play a major role and that arms the telecom giant for domination in the highly competitive cloud market.
Following on Verizon's $1.4 billion acquisition of Terremark, which closed in April, Verizon said it has shaped a hearty go-to-market strategy for Terremark and has put a host of new cloud services and solutions underneath the Terremark umbrella. Verizon has said that Terremark will retain its name and be a wholly owned Verizon company.
"It's the new way that enterprises governments and consumers are going to consume IT," said Kerry Bailey, Verizon's Terremark group president, in an interview, calling the cloud the "third wave of IT."
"Making the bet right now -- just like we did with LTE and just like we did with FIOS – is the right answer for us," Bailey said.
Verizon's Terremark integration comes as major telecom, cable and service providers seek to bulk up their cloud computing profiles through acquisition and strategic investment. Following Verizon's Terremark buy, Time Warner Cable spent $220 million to purchase NaviSite, a cloud hosting provider; and major telco CenturyLink scooped up cloud provider Savvis. And Verizon rival AT&T has vowed to invest $1 billion in cloud services and mobility this year.
Adding Terremark to the fold gives Verizon a distinct advantage, Bailey said. Verizon has the background in networking and the infrastructure in place to support cloud services.
As part of its Terremark strategy, Verizon has beefed up its cloud solutions to target North America, Latin America, Europe and Asia-Pacific. Bailey said Verizon will give Terremark the task of delivering cloud infrastructure and managed IT and security plays and the Miami-based provider will act as Verizon's arm for the delivery of enterprise and government IT services. Verizon has also wrapped its managed security, risk and compliance, and identity and access management services, along with application management services and IT and security professional services into the Terremark brand.
Terremark's new portfolio focuses on three key areas: IT infrastructure and cloud, security and professional services. The IT Infrastructure and Cloud Services are underpinned by a delivery model that helps enterprises integrate their existing infrastructure and applications. The offering includes collocation, managed hosting and enterprise cloud and will be supported by a platform that lets customers move to cloud at their pace via public, private and hybrid clouds coupled with Terremark's suite of peering, interconnect and managed routing services.
The expanded suite of Security Services fives Terremark the ability to offer solutions for physical security, policies and controls for compliance; vulnerability assessments; testing services; and other data protection and high availability offerings.
And Terremark also now has a set of related professional services and will focus on aligning with technology partners and carriers via a go-to-market strategy that includes a host of collaborators including Accenture, Cisco, EMC, HP, NetApp, SAP and VMware, as well as other key technology providers, and a continued emphasis of carrier neutrality at its datacenters around the world.
The Verizon-Terremark tie-in, Bailey said, now gives both Verizon and Terremark the ability to deliver services leveraging nearly 50 data centers, which gives a massive scale injection to Terremark's existing data center footprint and bulks up its capabilities to be a triple threat of cloud, hosting and collocation.
NEXT: Verizon-Terremark: Where Does The Cloud Channel Play?