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Why Verizon Communications Inc. Killed Two Public Cloud Services

Verizon recently announced that it will shutter two of its public cloud services, Verizon Public Cloud and Reserved Public Cloud services, on April 12. However, the company will keep its on-site Verizon Private Cloud (VPC) and Verizon Cloud Storage services active. Let's take a closer look at Verizon's frequently overlooked cloud business, and why it's retreating from the crowded public cloud market .

Verizon's Go90 video service. Source: Verizon.

Verizon isn't giving up on the cloud... yet

Verizon might have retreated from the public cloud, but it isn't giving up on the cloud market yet. A Verizon spokesman recently told The Register that the company "remains committed to delivering a range of cloud services for enterprise and government customers and is making significant investments in its cloud platform in 2016."

This probably means that Verizon will focus on private and hybrid cloud installations instead of the public cloud market. Verizon already started integrating its private clouds with AWS in 2014. Last November, it introduced a new service, Intelligent Cloud Control, which enables its enterprise wireline customers to directly connect to AWS, Azure, and other cloud platforms. In early February, reports claimed that Verizon and Google could form a strategic partnership to jointly develop hybrid cloud solutions.

Those partnerships are clever, because they enable Verizon to stay invested in the cloud without the costly burden of running its own public cloud services. In my opinion, Verizon's exit from the public cloud market is a smart move which will help streamline its overall business.

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The article Why Verizon Communications Inc. Killed Two Public Cloud Services originally appeared on Fool.com.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun owns shares of Amazon.com and Verizon Communications. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Amazon.com. The Motley Fool recommends Gartner and Verizon Communications. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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