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Ericsson (ERIC) to Deploy Verizon's (VZ) Managed SD-WAN
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U.S. telecom behemoth Verizon Communications Inc. (VZ - Free Report) has inked a managed services deal with Ericsson (ERIC - Free Report) wherein the latter will be deploying Verizon's Managed Software Defined Wide Area Network (SD WAN) for its corporate IT, including virtualized security services and Managed Enterprise Radio Access Network (E-RAN) solutions. This should help Ericsson in the transformation of its corporate IT environment toward a virtual services implementation.
As per the deal, Ericsson will utilize virtualized network functions (VNFs) as a utility in a pay-as-you-go model. This model will be based on usage and will expand the global reach of the company’s corporate IT infrastructure using Verizon's Global IP network for public and private networking solutions.
The use of Verizon’s software defined services will help Ericsson in the automation of operations, maintenance of application performance and enabling on-demand implementation of WAN policies. From an SD-WAN perspective, Ericsson’s technology helps Verizon in the proper management and organization of hybrid client networks in real time.
Verizon's Managed SD-WAN and Managed E-RAN solutions are part of the its network-as-a-service (NaaS) offerings. The services offered are an outcome of Ericsson's Dynamic Orchestration, Closed loop service assurance and Automated Validation and Onboarding Platform.
What's a Software-Defined Wide Area Network (SD-WAN)?
The software-defined wide area network (SD-WAN) is a specific application of software-defined networking (SDN) technology applied to WAN connections, which are used to connect enterprise networks – including branch offices and data centers – over large geographic distances.
SD-WAN has the advantage of removing potentially expensive routing hardware by provisioning connectivity and services via the cloud. The main goal of SD-WAN technology is to deliver a business-class, secure, and simple cloud-enabled WAN connection with as much open and software-based technology as possible.
A key application of an SD-WAN is to allow companies to build higher-performance WANs using lower-cost internet access, enabling businesses to partially or wholly replace more expensive private WAN connection technologies such as MPLS (Multiprotocol Label Switching).
Bottom Line
Ericsson is a long-standing and major vendor partner for Verizon Communications. Apart from focusing on 5G wireless network field trials and Internet of Things (IoT) associations, the two companies are working together to uplift Verizon’s Network and Technology division.
Meanwhile, where the SD-WAN industry is expected to witness a rapid growth of around 200% in the next 12 months, we believe the idea of highlighting Ericsson as one of its SD-WAN customers marks a strategic move on Verizon’s part in increasing its enterprise customer base.
To deliver SD-WAN, Verizon also uses software from Viptela and Cisco Systems Inc. (CSCO - Free Report) . Verizon Communications claims to have over 90 active SD-WAN implementations and 16 full-scale deployments. It also has 30 participants taking part in a universal CPE program trial.
Two other major wireless carriers, Sprint Corp. (S - Free Report) and AT&T Inc. (T - Free Report) also launched their software-defined wide area network (SD-WAN) services.
Price Performance
Over the past three months, share price of Verizon declined 7.26% compared with the Zacks categorized Wireless National industry’s fall of 5.22%.
Meanwhile, share price of Ericsson moved up 14.18% outshining the Zacks categorized Wireless Equipment industry’s 8.64% growth in the same time frame.
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Ericsson (ERIC) to Deploy Verizon's (VZ) Managed SD-WAN
U.S. telecom behemoth Verizon Communications Inc. (VZ - Free Report) has inked a managed services deal with Ericsson (ERIC - Free Report) wherein the latter will be deploying Verizon's Managed Software Defined Wide Area Network (SD WAN) for its corporate IT, including virtualized security services and Managed Enterprise Radio Access Network (E-RAN) solutions. This should help Ericsson in the transformation of its corporate IT environment toward a virtual services implementation.
As per the deal, Ericsson will utilize virtualized network functions (VNFs) as a utility in a pay-as-you-go model. This model will be based on usage and will expand the global reach of the company’s corporate IT infrastructure using Verizon's Global IP network for public and private networking solutions.
The use of Verizon’s software defined services will help Ericsson in the automation of operations, maintenance of application performance and enabling on-demand implementation of WAN policies. From an SD-WAN perspective, Ericsson’s technology helps Verizon in the proper management and organization of hybrid client networks in real time.
Verizon's Managed SD-WAN and Managed E-RAN solutions are part of the its network-as-a-service (NaaS) offerings. The services offered are an outcome of Ericsson's Dynamic Orchestration, Closed loop service assurance and Automated Validation and Onboarding Platform.
Currently, Ericsson carries a Zacks Rank #5 (Strong Sell) while Verizon Communications is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
What's a Software-Defined Wide Area Network (SD-WAN)?
The software-defined wide area network (SD-WAN) is a specific application of software-defined networking (SDN) technology applied to WAN connections, which are used to connect enterprise networks – including branch offices and data centers – over large geographic distances.
SD-WAN has the advantage of removing potentially expensive routing hardware by provisioning connectivity and services via the cloud. The main goal of SD-WAN technology is to deliver a business-class, secure, and simple cloud-enabled WAN connection with as much open and software-based technology as possible.
A key application of an SD-WAN is to allow companies to build higher-performance WANs using lower-cost internet access, enabling businesses to partially or wholly replace more expensive private WAN connection technologies such as MPLS (Multiprotocol Label Switching).
Bottom Line
Ericsson is a long-standing and major vendor partner for Verizon Communications. Apart from focusing on 5G wireless network field trials and Internet of Things (IoT) associations, the two companies are working together to uplift Verizon’s Network and Technology division.
Meanwhile, where the SD-WAN industry is expected to witness a rapid growth of around 200% in the next 12 months, we believe the idea of highlighting Ericsson as one of its SD-WAN customers marks a strategic move on Verizon’s part in increasing its enterprise customer base.
To deliver SD-WAN, Verizon also uses software from Viptela and Cisco Systems Inc. (CSCO - Free Report) . Verizon Communications claims to have over 90 active SD-WAN implementations and 16 full-scale deployments. It also has 30 participants taking part in a universal CPE program trial.
Two other major wireless carriers, Sprint Corp. (S - Free Report) and AT&T Inc. (T - Free Report) also launched their software-defined wide area network (SD-WAN) services.
Price Performance
Over the past three months, share price of Verizon declined 7.26% compared with the Zacks categorized Wireless National industry’s fall of 5.22%.
Meanwhile, share price of Ericsson moved up 14.18% outshining the Zacks categorized Wireless Equipment industry’s 8.64% growth in the same time frame.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>