Blog Post

Verizon furnishes cloud for Aussie telecom

Global Gossip, an Australian telecom that specializes in Internet access, chose Verizon’s Computing-as-a-Service as the engine for its cloud offering going forward.

Verizon (s VZ) CaaS, sold by Verizon Global Wholesale, lets its cloud customers ramp up capacity on demand, but is just one of many flavors of Verizon cloud.

Over the past year alone, the telco giant company spent more than $2 billion on cloud-related technologies, starting with its $1.4 billion purchase of Terremark — a provider of managed and cloud services — in January, and continuing most recently with its acquisition of Cloudswitch last month. Privately held Cloudswitch specialized in technology to ease customers’ move from on-premises technology into the cloud.

Given all this activity, it’s interesting that Global Gossip went with Verizon CaaS vs. a Verizon Terremark option.

The reason for all this M&A activity by the big telcos? Verizon– like its competitors–has big, fat pipes to fill–especially as voice call volume falls off. It wants to fill them with on-demand cloud services.

Late last week, Kerry Bailey, group president of Verizon’s Terremark Worldwide unit, told reporters in Amsterdam that the company estimates cloud services will represent a $150 billion market opportunity by 2010.

As GigaOm Pro analyst Paul Miller wrote earlier this month, there’s a race to the cloud among all these players:

Around the world, big telecommunications providers such as AT&T(s T), BT (s BT), Telstra and Verizon have been hard at work, diversifying and seeking new business opportunities as revenue from domestic and international voice traffic continues to decline. While existing expertise and infrastructure made networking and data hosting a logical new endeavor, recent moves such as the Terremark and CloudSwitch acquisitions tap into a growing enterprise requirement for easy and controlled paths out of the legacy data center and into the cloud.

In April, Centurylink (s CTL), having already bought Qwest, announced plans to snap up Savvis, a Terremark competitor, for $3.2 billion and Time Warner Cable (s TWC) bought NaviSite.

Image courtesy of Flickr user karindalziel