A Telecom-Cloud Services Relationship Offers the Best of Both Worlds

By: Albert McKeon| - Leave a comment

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IBM’s purchase of Verizon’s cloud services might be the beginning of a beautiful friendship. Verizon announced its agreement with IBM in May, signaling the start of a relationship that could mutually benefit these giants of telecommunications and tech, according to Fierce Telecom. While the two companies are still working out the specifics of how the partnership will function, customers will certainly gain from having access to the best of what these two companies offer.

Telecom operators provide data and voice services, while cloud companies power the many offerings through those services. Companies in both industries are forging partnerships to best deliver cloud-based digital tools to consumers and businesses. The IBM and Verizon deal represents one more stop toward converging the tech and telecom industries.

Building a Cloud Services Connection

When IBM purchased Verizon’s cloud and managed hosting service, the companies agreed to work together on a number of strategic initiatives involving networking and cloud services. While they haven’t disclosed how these initiatives will unfold, the companies will undoubtedly play to each other’s strengths.

Verizon views the partnership as a boon for its Enterprise Solutions arm, saying the deal will enable its customers to “securely and reliably connect to their cloud resources” and cloud-enabled applications, Fierce Telecom reports. Verizon believes IBM will help it become a leading managed services provider by offering a best-in-class ecosystem comprised of its own and other providers’ technologies.

IBM stands to gain as well. According to Enterprise Cloud News, the deal will bring 700 Verizon Enterprise Solutions customers into IBM’s tent and further expand IBM’s global footprint as the company continues its mission to invest in cloud technology.

Tech Partnerships in a Diverse Marketplace

The IBM-Verizon deal shouldn’t come as a surprise. As technologies advance and markets mature, companies recognize their strengths and invest more resources in them.

For example, earlier this year, AT&T partnered with IBM to create a new Internet of Things (IoT) analytics solution that will draw from the Watson IoT and Data platforms to deliver enhanced IoT offerings to AT&T enterprise customers. According to an IBM press release, the two companies also joined forces in 2016 when IBM took advantage of AT&T’s FlexWare, a solution that sets up and manages virtual network functions on a single device. In turn, the telecom company tapped into IBM’s cloud infrastructure and sales and marketing teams.

The Verizon-IBM cloud services deal equips Verizon to set its sights on sharpening its traditional enterprise services portfolio. According to Fierce Telecom, Verizon’s purchase of XO Communications in early 2017 gives it a larger pool of metro and long-haul fiber assets to support its delivery of Ethernet and optical services to enterprise customers. Meanwhile, IBM can continue to flex its muscle in the $10 billion cloud infrastructure market that’s expected to grow at more than 40 percent per year.

Focusing on Core Strengths

For the unforeseeable future, mobility, high-speed internet and cellular connectivity and cloud computing will continue to be the foundations for business growth and consumer satisfaction.

Telecom operators will solidify their places in this future when they focus on their core strategies and partner with tech companies that specialize in other areas, such as large-scale cloud and IT services. A telecom company’s deep customer base will benefit from the connection and service of this kind of relationship.

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About The Author

Albert McKeon

Freelance Writer

Albert McKeon covers technology, health, business, politics and entertainment. He previously worked as a newspaper reporter for 16 years on the staffs of The Telegraph (N.H.) and Boston Herald, winning the New England Press Association’s Journalist of the Year award and other honors. He now writes as a freelancer for several magazines and news outlets, and creates content for organizations such as Massachusetts General Hospital and Boston College.

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