Verizon sells its cloud and managed hosting services to IBM

IBM sees the deal as a way to expand its cloud position

Verizon shut down its public cloud service in early 2016, and is now unloading its virtual private cloud and managed hosting offerings to IBM.

The deal, announced Tuesday, allows IBM to improve its position in cloud computing, a spokesman said by email.

Meanwhile, the deal allows Verizon to get out of the cloud infrastructure market dominated by Amazon, Google, and Microsoft, allowing it to focus on its managed network, security, and communications services.

The companies did not disclose the terms of the sale. The transaction is expected to close later this year.

"This is the latest in a series of IBM initiatives enhancing its leadership position in such areas as cloud computing, cognitive technologies, internet of things, security, mobility, and analytics," IBM's spokesman added. "And the agreement aligns to and supports IBM's hybrid cloud and IT-as-a-Service strategy."

The deal gives IBM an increased presence across several industries, including the U.S. federal government, healthcare, retail, and utilities, he added.

As part of the sale, Verizon and IBM agreed to work together on strategic initiatives involving networking and cloud services, George Fischer, senior vice president and group president of Verizon Enterprise Solutions, said in a blog post.

The deal is a "great opportunity" for Verizon Enterprise Solutions and its customers, he added.

"It is the latest development in an ongoing IT strategy aimed at allowing us to focus on helping our customers securely and reliably connect to their cloud resources and utilize cloud-enabled applications," he added.

The deal supports Verizon's goal to become "one of the world's leading managed services providers enabled by an ecosystem of best-in-class technology solutions from Verizon and a network of other leading providers," Fischer said.

Affected customers shouldn't expect any immediate impact on their services, he added.

Separately, data center provider Equinix announced Monday it had closed a US$3.6 billion deal to buy 29 Verizon data centers, representing more than half of the data centers operated by the telecom carrier.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?