Trends Report

Verizon Business Lacks CSD Maturity But Shows Future Potential

SWOT Analysis: Verizon Business, Q2 2008

May 12th, 2008
With contributors:
Thomas Mendel, Ph.D. , Janine Liu

Summary

The story we hear from Verizon Business is one of learning and growth: The provider is adding multiprotocol label switching (MPLS) client sites at a rate of 20% per year, and last summer it launched an internal program to expand its IT certifications and capabilities. Nevertheless, we should be clear: Verizon Business has a long way to go to become a leader in Converged Service Delivery (CSD). From a business perspective, its global footprint is almost nonexistent, despite a strong and growing global network infrastructure. And the provider's messaging still maintains a strong telecom bias that privileges the network over IT offerings. Further, Verizon Business has not yet built marketplace awareness of its place — either aspiring or actual — as a global CSD provider. Given these weaknesses, combined with several competitors that are bigger, better established, and equally focused on the future, Verizon Business should not expect impressive business success in the near-term. Nonetheless, other CSD ascendants should keep their eye on Verizon Business; it may turn into a credible threat if it plays its cards right.

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