Verizon Business Takes Security to – and Through – the Cloud

Event Summary

May 13, 2010 - Verizon Business introduced a new global, cloud-based offer that delivers integrated security capabilities with network connectivity, using a multi-tenant hosted infrastructure instead of equipment on customers’ premises. Customers can quickly and easily secure multiple locations from spam, viruses, malicious code and other unwanted content through a centralized management console that allows for real-time provisioning and administration. The provider will add other cloud-based security services later this year and early next year, including a new network-based firewall and intrusion prevention solution in the fall, and an on-demand denial of service mitigation offer due in 2011.

Quick Take

Analytical Summary

• Current Perspective: Positive on Verizon Business’ outline of its plans around cloud security services, because the upcoming offers will deliver a range of security protections to provide business customers with cost-effective solutions that address some of their bigger security headaches. The services draw on a flexible and robust shared infrastructure and on Verizon's deep security expertise. Customers will also appreciate the price – Verizon's initial clean pipes Web and email filtering offer will be free of charge with access services.

• Vendor Importance: High to Verizon Business, because the company is banking on its security capabilities to differentiate its network and more advanced strategic services from those of its competitors. Verizon Business is jockeying for a leading role in the cloud: Many companies cite security concerns as a deterrent to on-demand initiatives, so Verizon Business is angling to provide the protections that will convince more businesses to move their online activities to its network.

• Market Impact: High on the managed IT services segment, because Verizon is beginning to employ a wide-ranging set of network security solutions that should be both effective and economical. The company's starting with a free offer will appeal to a broad cross-section of the market. This should help Verizon up-sell existing clients on both access and other services, and potentially even woo new clients away from rivals.

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Competitive Strengths and Weaknesses

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Analytical Perspective

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