Verizon is readying managed security services that exploit technologies the carrier has been using to safeguard its own network operations.

Verizon has begun briefing its Enterprise Solutions Group customers on the services, which will be offered on a nationwide basis. Managed security will be run by 48 technicians working three shifts to provide 24/7 surveillance from the carrier's Global Security Operations Center near Dallas.

"What we're doing is looking at Verizon capabilities, specifically internal, where we have a significant investment," says Bill Hummel, product manager for managed security and storage services. "Why can't we offer this same internal Verizon expertise to our customers?"

Verizon joins an expanding list of RBOCs, interexchange carriers, managed security service providers (MSSP) and systems integrators offering outsourced security services. AT&T recently began offering enterprise services based on technologies and processes initially used internally. SBC recently added a managed intrusion-prevention service to its roster of security services.

MCI, which is being acquired by Verizon, bought MSSP NetSec earlier this year.

"It's certainly something that the business customer community expects of the RBOCs," says Dave Lemelin, senior analyst at In-Stat. "When you look at the IT professionals in enterprise businesses, two of the top three challenges they have today are how to handle storage and how to handle security. When you look at middle-sized businesses. . . they don't have the resources that the larger companies do."

According to The Yankee Group, businesses spent $150 million on network-based security services in 2003. By 2008, the firm forecasts that spending will swell to $570 million, a compound annual growth rate of 30.6%.

The Yankee Group estimates that the cost of deploying carrier-based services is 20% less than the cost of customer premises-based services.

Among the specifics

Verizon's managed security services will include:

•  Event management.
•  Firewalls.
•  VPNs.
•  Intrusion detection and mitigation.
•  Vulnerability management.
•  Compliance management, which will tailor services around regulations to which a company must adhere.
•  Anti-spam/anti-virus.
•  Identity management.
•  Security intelligence, such as data on threats and mitigation techniques.
•  Encryption.
•  Professional services.

Verizon says the managed security equipment and services it offers is expected to stay up 99.7% of the time. Pricing is customer-specific, but can run from $250 to $2,500 per month, depending on the type of firewall and level of service needed, the company says.

Customers will have a Web portal from which they can gain access to security reports, view activity and request changes.

Customer demand cited

Until now, Verizon offered security services from Integralis, a security systems integrator with U.S. operations in East Hartford, Conn. The carrier bundled "point" solutions from Integralis, such as a firewall, with Verizon network services and VPNs.

Now Verizon customers are pushing the carrier to provide them with the same comprehensive security products and procedures Verizon uses for its own network, which supports 210,000 desktops and eight major data centers.

"Customers have asked us, 'If you're doing it for yourself and keeping the threats out of your own company, can you help us by providing the cybersecurity along with the network?'" Hummel says. "We're taking a much larger role and a much bigger presence."

Verizon and Integralis say they will continue to partner. Integralis will continue to purchase, install and maintain security equipment, while Verizon personnel will monitor customer networks. Previously, Integralis personnel provided monitoring.

Hummel says Verizon will continue to partner with Integralis for optional security extensions should customers request them. Integralis says each company's security portfolios will "strategically complement each other."

Verizon also will bundle security services around customer premises products and services it offers from strategic partners Alcatel, Cisco, EDS, EMC, IBM, Lucent, NEC and Nortel.

In addition to the 48 technicians at its Global Security Operations Center, Verizon has 11 designers who consult with customers to tailor a security plan, Hummel says. Verizon plans to expand that staff, he says.

Hundreds of enterprise systems engineers also are being trained on all aspects of the operations center and the managed security offerings, Hummel says. The operations center has a primary backup facility and Verizon has several secondary centers, he says.

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