Verizon Business Betting Risk Card with Updated Managed Security Services Platform

| Aug 10, 2009 | Managed IT Services | Competitive Update

| Analyst: Amy Larsen DeCarlo

Current Perspective: Positive
Vendor Importance: Moderate
Market Impact: Moderate

Event Summary

August 5, 2009 –- Verizon Business launched its next-generation managed security services (MSS) platform this week, which uses a proprietary system -- the State and Event Analysis Machine (SEAM) -- to identify and prioritize threats that are most harmful to enterprise operations and resources. The system correlates data collected from customer network- and premises-based security devices, as well as the Verizon network. Verizon Business also added enhancements to its portal including central change management control, dynamic querying and reporting, and twelve-month trending and benchmarking information. The company also now offers customers three service tiers ranging from basic monitoring of security devices to complete device management and remediation.

Analytical Summary

• Current Perspective: Positive on Verizon Business’ introduction of a retooled managed security services (MSS) platform and improvements to its portal because these enhancements will help SMB and enterprise clients prioritize the risks that are the greatest threats to the business. This approach, along with new tiered service options that provide varying levels of security monitoring and management based on customer’s need, give customers a cost-effective way to carry out a security strategy that is rooted in corporate concerns.

• Vendor Importance: Moderate to Verizon Business because the company is adding a critical foundational element to its managed security services (MSS) portfolio that supports the work the company has been doing since its 2007 Cybertrust acquisition (please see Verizon Business Makes Global Security Play with Cybertrust Acquisition, May 17, 2007). This helps the company produce solutions that help customers better align security efforts with business goals. The company’s State and Event Analysis Machine (SEAM) correlates threat, vulnerability and technical asset information from multiple sources in order to determine how to best allocate security resources to mitigate threats to critical business assets and operations. This is the latest, and perhaps most significant advance in a series of new managed and professional security services (please see Verizon Business Scores Business Risk in Enhanced Correlation Service, January 12, 2009) that apply a risk-based correlation approach to deliver more effective security solutions.

• Market Impact: Moderate on the managed security segment because Verizon is upgrading its platform with components that will support a better dynamic by delivering managed security solutions that factor the threat impact on the business into the equation. Also, Verizon Business appeals to a broad set of both SMB and enterprise customers with a message that resonates well even in a difficult economy. This makes Verizon Business a serious actor in most competitive MSS situations.

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Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Managed IT Services | More information

Recommended Competitor Actions

• Though no competitor needs to respond directly to this announcement, rival MSSPs need to make sure they mount an active sales force training program around exactly what Verizon introduced here and how they handle risk management within their own platforms. If asked, competitor sales organizations should note that while Verizon Business has a valid approach, the correlation engine is almost an afterthought to a long-running message.

• BT can counter any questions about this announcement by highlighting the capabilities of Socrates, its own correlation engine. The company can depict Verizon Business as being a bit late to the risk management party by noting its own lengthy history and its solid track record in this arena.

• AT&T needs to strengthen its story around how it helps business customers prioritize their response to vulnerabilities and threats. The company should consider highlighting real world examples, even if anonymous, to better define the role it plays in helping its customers balance the need for exceptional security with leaner budgets.

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Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Managed IT Services | More information

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