February 18, 2009 -- Verizon Business announced a new portfolio of converged solutions that address the security and performance challenges faced by large corporations and will meet the increased demand for integrated capabilities spanning the entire IT “stack,” which is the computing structure that includes the network, data, application, and user layers. This new suite of integrated solutions will enable companies to build a secure, high-performance communications and IT infrastructure. It also addresses a critical issue that enterprise IT organizations often struggle with: how to work seamlessly between the IT groups responsible for different layers of the stack, in order to avoid data breaches and poor application performance affecting the daily operations of an organization.

• Current Perspective: Positive on Verizon Business’ new suite of converged solutions, including its Virtual Discovery and Classification (VDC) offer, as these services can help customers identify external threats and malicious activity affecting their companies. Verizon Business is among the few carriers to productize network traffic monitoring and analysis as a service for its clients.

• Vendor Importance: Moderate to Verizon Business, because the company looks to build upon its existing security service offerings with this addition of a traffic monitoring solution. The analysis also provides a great entry point to Verizon solutions, helping Verizon drive sales of its other security solutions.

• Market Impact: Moderate on the managed security market, as this offering adds an interesting new dimension to vulnerability assessments. This is an offering that will be difficult for non-carriers to match, and smaller telcos that transport lighter traffic loads than Verizon Business will have considerably less data to assess.

We are taking a positive stance on Verizon Business’ new suite of converged solutions, including its Virtual Discovery and Classification (VDC) offer, as these services can help customers better gauge external threats and malicious activity affecting their companies. Verizon Business is among the few carriers to productize this type of network monitoring and analysis as a service providing clients with valuable insights into traffic patterns so they can proactively identify potential security issues.

Verizon Business’s Virtual Discovery and Classification (VDC) service is available now in two flavors, giving prospects added options, whether they require a short-term analysis or a longer-term assessment of external threats. The solution complements Verizon Business’ other security services and it is a nice supplement to the client’s own internal resources. The Verizon VDC is designed to detect unusual, malicious, or unexpected client network traffic and connections, and it can also enlighten a customer on emerging Internet threat activity and configuration issues. While other carriers may routinely monitor network traffic for security threats, Verizon Business is among the first providers to productize this capability and offer it as a service to its clients. The service combines security intelligence with data captured through Verizon’s Internet backbone to identify threats proactively. Verizon Business is able to map this traffic with geocodes (highlighting where traffic is going to and from, including countries), which can provide valuable insights, such as showing traffic directed from partners that should no longer be active.

Verizon Business’ VDC one-off option typically captures and analyzes traffic over a two-week period, a timeframe that may still not be long enough to get a true picture of threats to a client’s business. While this might make a good spot check, clients will probably need to look at the longer-term option for a more accurate picture of threats. Furthermore, other providers offer rival solutions that correlate data from multiple sources to perform sophisticated threat analysis that is arguably just as accurate as the data in the Verizon Business assessments.

This is an interesting move for Verizon Business, and it will have a moderate impact on the managed security market, as this offering adds a new dimension to vulnerability assessments. This is an offering that can be difficult for non-carriers to match, and even smaller telcos will not have access to the volume of network traffic Verizon Business has. In particular, competitors AT&T and Orange Business Services will want to consider how they might compete against this with comparable vulnerability solutions of their own.

• Verizon Business’ Virtual Discovery and Classification (VDC) is available immediately in two flavors that meet the specific needs of prospects: either a short-term variation that provides a valuable spot check or a longer-term assessment of external threats to the customer’s infrastructure and data.

• Verizon Business’ solution is a nice complement to its other services as well as a client’s own internal resources. The VDC can discover unusual, malicious, or unexpected traffic patterns and connections that may be impacting business, as well as emerging Internet threat activity and configuration issues.

• While other carriers may routinely monitor network traffic for security threats, Verizon is among the first to productize this capability and offer it as a service to its clients. The service combines security intelligence with data captured through Verizon’s Internet backbone for accurate client assessments.

• Verizon Business’ VDC one-off option covers a two-week period analysis for a client, which may still not be long enough to get a true picture of threats. While good for a spot check, clients may need to look to the longer-term option that provides a more robust picture of network threats.

• While the Verizon Business approach to threat analysis is unique, other providers offer rival solutions that correlate data from multiple sources to perform sophisticated threat analysis that is arguably just as accurate as the data in the Verizon Business assessments.

• Verizon Business needs to promote its new solution as just one element in a multi-faceted strategy to safeguard network resources from previously unrecognized threats. The provider should emphasize that it has both the consultative and packaged managed security services clients need to be more proactive in defending their IT resources.

• Verizon Business should look at introducing an ongoing subscription-based alert service that builds on its client analysis. This could be targeted for specific threats or selected sites that a client wants protected.

• Clients especially concerned about external threats to their business data and applications will find Verizon Business’ new service intriguing. The ability to provide insights on traffic flows, geographies, and protocols may be invaluable to protecting corporate assets and ferreting out unauthorized activities.

• While the one-off program may offer shorter-term and cheaper solutions, clients should consider a longer-term scope of analysis that may more accurately reflect fluctuating and time-based activity that might not be captured over a shorter duration run of the service.