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Verizon Communications Inc. (VZ) unveiled on Wednesday a service that allows large companies to outsource their technology infrastructure to the telecommunications provider.

The New York company is tapping into the “cloud computing” trend, where corporate IT services are managed over the Web. Large companies looking to cut costs can hand over their IT equipment, which include storage, server and network gear, for Verizon to manage through its own network and data centers.

“Clearly, there’s a huge savings opportunity for companies to deploy cloud services,” said Michael Marcellin, who is vice president of Verizon’s global product marketing.

Rather than buy their own data centers and servers, companies can utilize Verizon’s infrastructure. Customers only have to pay for what they use, which is a more efficient model than buying banks of data center and servers to serve current needs and have enough capacity for future growth.

“It really changes how enterprises and government agencies purchase resources and manage them,” Marcellin said. “You can scale up for a busy season, or scale down for dead times.”

Customers pay a subscription fee of $250 a month, and then get billed on daily usage. Because of the variability of the pricing, Marcellin wasn’t more specific with costs. He added, however, that companies can expect to save between 30% and 60% in IT costs through Verizon’s offering.

Verizon, however, enters a crowded field. International Business Machines Corp. (IBM) and Hewlett-Packard Co. (HPQ) – often partners with the telco – offer traditional data center and computing services. Cisco Systems Inc. (CSCO) recently unveiled a virtualized data center for businesses. The increased competition has each company securing their grip on their customers. AT&T Inc. (T), meanwhile, has a cloud storage service, and plans to offer its own computing service as well.

In addition, large companies that have… Read more

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