Verizon Communications Inc. (NYSE:VZ) Teams Up With Cisco Systems, Inc. (NASDAQ:CSCO) To Target Enterprises With Software-Defined Network Services
Verizon Communications Inc. (NYSE:VZ) continues to think of new ways to squeeze money from its existing customers as well as new ones. In addition to its Internet-based video streaming service Go90, the company is targeting enterprise customers with a managed network service built on the platform of Cisco Systems, Inc. (NASDAQ:CSCO).
It has come to the realization of many enterprises that software defined networks (SDN) can go a long way to improve network agility. Amid demand for SDN, Verizon has seen an opportunity to tap incremental revenue. The company has joined forces with Cisco and they will render managed network solutions called (Managed SD-WAN) to enterprise customers. Both Verizon and Cisco will be involved in the marking of the service, but each will have a unique role to play in the partnership to ensure success.
Each player’s role
Managed SD-WAN service will be built on Cisco’s platform called IWAN networking technology. Verizon will be responsible for routing traffic based on workloads, integrating layers and managing the policies. Additionally, Verizon will take care of network configuration and provide engineers to do the SD-WAN implementation for enterprise. On its part, Cisco is responsible for the infrastructure and application programming interface.
Among other things, Verizon and Cisco hopes to offer application optimization, faster provisioning, certified routing and more through SD-WAN.
Although SDN has many promises for enterprises, many enterprise customers have not embraced it and Verizon is hoping to get involved.
With SD-WAN, Verizon Communications Inc. (NYSE:VZ) becomes the first U.S. carrier to offer SDN services based on Cisco’s technology.
Verizon and Cisco’s SDN service will initially launch in the U.S. this month with rollouts in EMEA region expected to follow before the end of this year.
In search of new growth
By venturing into managed network service business, Verizon Communications Inc. (NYSE:VZ) is clearly looking for new growth. The company’s other new growth play is Go90, which is expected to launch this week and will offer free ad-supported video streaming services, even for those that are not currently on the Verizon network. Go90 will target users in the 18-34 age brackets.
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