
"On the data center sales we are coming to an end of the process. And we will probably come to a definitive answer in the third quarter as to whether we're going to move forward or we're not. And so I'll hold comment for the third quarter for that."
Potential Verizon Cloud Data Center Sale: Why?
Like many telcos, Verizon once hoped to compete against Amazon Web Services in the public cloud market. But more recently the company has focused on three core priorities:- Sustaining quality and performance leadership across all Verizon networks;
- building new ecosystems around our broadband, video, and Internet of Things global platforms; and
- monetizing investments in networks and platform through applications and content.
Telcos and Cloud Data Centers: The Big Struggle
Still, he didn't get into the cloud services -- an area where most telcos and many technology giants found it too difficult to compete head-on against AWS and Microsoft Azure. In addition to a potential change of course for Verizon, the market pivots so far have included:- AT&T exited the managed hosting market, essentially punting the business to IBM SoftLayer’s management.
- CenturyLink has been trying to sell nearly 60 data centers, though the company says it will continue to offer cloud services even if it doesn’t own the physical buildings that host the services.
- Hardware giant Hewlett Packard Enterprise killed its own public cloud to offer managed services for third-party clouds.
- Early cloud pioneer Rackspace has hedged its bets, introducing managed services for third-party clouds.
- Windstream Holdings sold its data center business for $575 million to TierPoint in 2015.