What Does Verizon Expect from the CloudSwitch Acquisition?

What Does Verizon Expect from the CloudSwitch Acquisition?

Verizon is betting big on cloud computing. After this year’s $1.4 billion acquisition of data center operator Terremark, Verizon has once again loosened its purse strings to buy cloud computing startup CloudSwitch. The latter develops software that eases the transition of company applications from in-house servers to the cloud. So, what does Verizon expect from this acquisition?

For one, Verizon expects to use CloudSwitch’s capabilities to offer its customers seamless migration to the cloud. CloudSwitch integrates with cloud providers’ public application program interfaces (APIs) to make moving an application or workload to the cloud as simple as a drag-and-drop action in a Web browser. “With CloudSwitch, applications remain tightly integrated with enterprise data center tools and policies, and can be moved easily between different cloud environments and back into the data center based on the requirements of the business,” Verizon said.

In this way, CloudSwitch acts like a “cloud broker”. According to Ellen Rubin, former marketing head at Netezza and co-founder of CloudSwitch, without such brokering capabilities, enterprises would have to configure all of those parameters manually – a costly, complex and time-intensive process. CloudSwitch’s location in Boston also played a part in the acquisition, considering it gives Verizon to the considerable talent pool in the region.

While CloudSwitch had relationships with both Amazon and Terremark, this acquisition may actually help the latter differentiate against its larger rival. As David Skok, general partner with CloudSwitch investor Matrix Partners put it, “The game being played in the cloud is being dictated by what Amazon is doing, but we’re still amazingly early in the game, even though the hype would have you believe that everyone’s doing it. There’s an enormous opportunity to create an enterprise version of what Amazon is doing.”

Terremark’s, and by extension Verizon’s interest in enterprise cloud software is not unexpected. While Terremark built its business around enterprise clients and some of the world’s largest organizations, they have been slow to move to the cloud, unlike smaller businesses that have flocked to Amazon’s cloud service. With this acquisition, Terremark can expand its portfolio beyond traditional data center services, like collocation, and into cloud computing.

CloudSwitch was not the only company on Verizon’s radar, revealed Rubin. “What we had was really best in breed, and they (Verizon) are strong believers that to be a successful cloud provider, you need to have software development capabilities,” she explained as to why CloudSwitch was chosen.

Founded in 2008, till date CloudSwitch has raised about $15 million from Matrix Partners, Atlas Venture and Commonwealth Capital Partners.

By Sourya Biswas

Sorry, comments are closed for this post.

The Open Performance Grid: Utopia Comes To Tech

The Open Performance Grid: Utopia Comes To Tech

The Open Performance Grid “For what greater wealth can there be than cheerfulness, peace of mind, and freedom from anxiety?” So wrote the English author and philosopher Sir Thomas More in his novel, Utopia, almost 500 years ago. More’s utopian dreams continue to thrive in one guise or another to the present day; in the…

Global Cloud Development An Open Question

Global Cloud Development An Open Question

Global Cloud Development Statistics and projections from Cisco’s Global Cloud Index show that the world’s data centers are already processing 4.7 zettabytes (4.7 million petabytes) per year. Cisco research says this amount will continue to grow by 23% annually for the next few years. (Inforgraphic Source: https://visual.ly/how-much-petabyte) If we project these numbers over the next 25…

Digital Transformation: Miracle and Wonder

Digital Transformation: Miracle and Wonder

Digital Transformation These are the days of miracle and wonder. I’ve been leading a small, global research team at the Tau Institute for the past few years to examine the dynamics of IT adoption in more than 100 countries throughout the world. We’ve developed several indices that show how well these nations are doing on a relative basis. We ranked the nations…

The iCloud Scandal – Who Is To Blame? –  ‘Cloud’ Security vs. ‘Internet’ Security

The iCloud Scandal – Who Is To Blame? – ‘Cloud’ Security vs. ‘Internet’ Security

How the iCloud Scandal Has Helped to Define the Difference Between ‘Cloud’ Security and ‘Internet’ Security Busting the myth that bad cloud security was to blame for Apple’s recent celebrity data disaster Overview: We discuss the ‘celebrity hacking’ iCloud saga and debate whether or not the breach was likely down to Cloud encryption issues or…

Cloud Email Marketing Services vs. Transactional Email Services

Cloud Email Marketing Services vs. Transactional Email Services

Cloud Based Email Marketing Services Every business can benefit from successful implementation of email marketing strategies, but the variety of SaaS on the market can be a little overwhelming at times. Whether you’re interested in learning more about email marketing or hoping to clear up any confusion surrounding transactional email, a little research into these…

Cloud Security: The Top 8 Risks According To ENISA

Cloud Security: The Top 8 Risks According To ENISA

Cloud Security Risks Does security in the cloud ever bother you? It would be weird if it didn’t. Cloud computing has a lot of benefits, but also a lot of risks if done in the wrong way. So what are the most important risks? The European Network Information Security Agency did extensive research on that,…

Shadow IT To Remain A Focus For Both Cloud Vendors And CIOs

Shadow IT To Remain A Focus For Both Cloud Vendors And CIOs

Shadow IT To Remain A Focus Shadow IT, a phenomenon defined as building internal IT systems without the official organizational approval has been a growing concern for CIOs over the last few years. In 2015, it climbed to the top of the list of the emerging IT threats, with as much as 83% CIOs reporting…

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Sponsor