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Verizon Business Makes Global Security Play with Cybertrust Acquisition |
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Yipes Adds Class of Service Prioritization to Its Global Managed Ethernet Services |
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Optimum Lightpath Launches Managed Voice over Metro Ethernet Service |
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Symantec Enters the SaaS Realm Starting with Online Backup Service |
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| High-Impact Events in the Industry |
Verizon Business Makes Global Security Play with Cybertrust Acquisition
| Current Perspective: |
| Positive |
| Vendor Importance: |
| High |
| Market Impact: |
| Very High |
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On May 14th Verizon Business announced that it would acquire Cybertrust, which provides information security services. Financial terms were not disclosed. The move will boost Verizon Business’ position in the managed information security services sector and help it better cater to large business and government customers. In addition to helping Verizon Business’ global security services, Cybertrust brings with it a solid identity management suite, Security Operation Centers (SOCs) in EMEA and Asia-Pac, and ICSA Labs, an independent division of Cybertrust, that provides security product certification.
Recommended Competitive Responses
► Competitors in general will need to take steps to review their global security position, and determine their preparedness to compete on this level, or to focus on regional sectors or niches. With the recent wave of mergers (BT/Counterpane, IBM/ISS, and now Verizon Business/Cybertrust), the market is getting crowded for those hoping to compete globally.
► For competitors looking for a player that is talking up managed risk, a partnership could be pursued with KSR which has offered its own managed risk service since introduction in November 2006.
► Orange is thrust into a difficult position, having worked with Cybertrust for some of its managed security services via its partnership. It will need to quickly assess whether it wants to continue in this partnership arrangement, or determine if it needs a new partner, or to make an acquisition. With fewer independent and focused players remaining, the bar has been raised for Orange.
► IBM can point out that Verizon is obviously reacting to its own acquisition of ISS which it completed in 2006. It can also note that not only did it get an extensive global managed security service in the deal, it also got a security hardware business that blends well with IBM’s professional approach for global enterprises.
► AT&T will need to evaluate its own position for global security. It has done a terrific job taking its higher end services (such as its Internet Protect) and offering variations on its services that appeal down-market. While it has been no slouch in the global market, it must evaluate its security profile to meet worldwide demand.
Recommended End User/Customer Responses
► End users will find that this move should prove useful to both companies and in turn, to their users; Verizon Business customers will gain added global security resources to help with their company’s protection, and Cybertrust customers gain the comfort that Cybertrust will now have deeper resources and backing for their security efforts.
► Prospects should approach this merger with caution initially, as the combination of assets and organization arrangements could be disruptive in the short term until there is a comfortable strategy that has coalesced post-merger. Longer term, the global reach of Cybertrust along with the backing and other resources that Verizon brings to the table will provide a worthy consideration of MNCs.
► Customers using a pure-play MSSP should seriously consider the new combined global carrier-MSSP approach being spearheaded by BT, IBM, and now Verizon. On the one hand, these service providers become even further entrenched in their accounts – on the other hand, they provide more transparency and easier management combined with standards adherence to allow for migration back from an outsourced model to an in-house or co-sourcing model.
Yipes Adds Class of Service Prioritization to Its Global Managed Ethernet Services
| Current Perspective: |
| Positive/Neutral |
| Vendor Importance: |
| High |
| Market Impact: |
| Low/Moderate |
|
On May 8th Yipes Enterprises Services announced the availability of a new class of service (CoS) feature that allows customers to prioritize their traffic over Yipes’ managed Ethernet services, including its global Virtual Private LAN Service (VPLS).
Recommended Competitive Responses
► Competitors such as Masergy and Verizon Business should look at how their CoS and SLAs match up with Yipes and be quick to point out any subtle points of differentiation. For example, Masergy offers five QoS levels, one each for voice and video, two for priority data, and one best-effort, while Yipes offers four, with just one real-time class.
► AT&T needs to offer a national MPLS-based Ethernet WAN service that enables any-any connectivity between multiple sites. Otherwise, AT&T risks being marginalized in the emerging market for Layer 2 VPNs.
► The large incumbent carriers can point out that Yipes is a relatively small service provider with a limited product set. To paraphrase Henry Ford, the large carriers can observe that Yipes’ services come in any flavor the customer wants, as long as the customer wants Ethernet. For the majority of enterprises that prefer IP VPNs, full-service carriers are much better suited to meeting all of the customers' networking needs.
Recommended End User/Customer Responses
► Enterprise end users looking for metro, national, and international VPN services should consider Yipe’s managed Ethernet services, which are all based on MPLS. Yipes' VPLS offer should be especially appealing for those that prefer to manage their own routing on top of carrier-provided Layer 2 services.
► Enterprise end users planning to migrate from legacy ATM and/or frame relay to next-generation MPLS-based services should consider Yipes' managed VPLS service with CoS as an alternative, or in addition, to Layer 3 VPNs. Companies that have compared VPLS to ATM and frame relay tended to prefer VPLS.
► Enterprise end users that wish to outsource their routing to a service provider using a Layer 3 IP/MPLS (2547) VPN service should look to one of the major carriers at this time.
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