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Verizon Terremark confronts AWS IaaS with new cloud instances

Verizon Terremark customers welcome new support within the company's Enterprise Cloud IaaS for AWS-like cloud instances.

Customers foresee cost savings as Verizon Terremark makes over its Enterprise Cloud Infrastructure as a Service offering with new support for pay-by-the-hour cloud instances.

The updates to the VMware-based Enterprise Cloud, or E-Cloud, Infrastructure as a Service (IaaS) offering allow organizations that have a contract with Verizon Terremark to provision customized cloud instances and spin them up and down as needed.

I personally think the 'T-shirt sizing' approach to IaaS isn't ideal.

Carl Brooks,
analyst, 451 Research

Previously, customers would provision a resource pool of compute, network and storage, and pay for it monthly, whether it was fully consumed or not.

"Before, I could adjust resources up and down every month," said Sebastian Bricchi, software engineering manager for Juegos Online, a game publishing company based in Buenos Aires, Argentina. "Now I can bring things up and down and pay only for what I use."

Bricchi expects the new cloud instances to offer cost savings as well as new flexibility, although he wasn't sure yet just how much he would save. The company currently has roughly 200 server instances hosted on E-Cloud.

Pricing for the new service will only be disclosed to current and prospective customers, a Verizon spokesperson said, which makes it difficult to tell just how competitive Verizon Terremark will be on that front with market leader Amazon Web Services (AWS).

But the new E-Cloud instances are more customizable than AWS IaaS -- users can select between 500 MB and 16 GB of memory, and between 1 and 8 virtual CPUs (or vPUs in Verizon Terremark parlance), rather than the pre-canned small, medium and large instances offered by AWS.

"I personally think the 'T-shirt sizing' approach to IaaS isn't ideal," said Carl Brooks, analyst with Boston-based 451 Research. "This is one area you can clearly see where VMware is ahead of open source and startup cloud platforms, and one reason enterprises pay the vTax."

Along with support for cloud instances, this update brings new security features to E-Cloud, including role-based access control and support for certificate-based multifactor authentication. Previously, E-Cloud had supported phone-based multifactor authentication, but was not able to accept things such as RSA tokens for additional security.

"One of Terremark's great strengths has been the way it's been able to commoditize and automate very complicated audit requirements for a large number of customers," Brooks said. "What this boils down to is that they're taking that fancy automated compliance regime and pushing it out to cover all their customers."

AWS also offers role-based access control as part of its Identity and Access Management service, as well as multifactor authentication.

As part of the same announcement, Verizon Terremark said it will open new data centers to support E-Cloud in London and Dallas.

Beth Pariseau is a senior news writer for and Write to her at or follow @PariseauTT on Twitter.

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