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Comcast Business offers direct connection to IBM Cloud network

Matt Hamblen | April 17, 2017
Comcast joins Verizon, AT&T and others as it seeks more large enterprise customers


Credit: kynny/Thinkstock

Comcast Business announced Thursday it now offers direct, dedicated network links to the IBM Cloud global network.

The move positions Comcast Business, a unit of Comcast, to compete against AT&T, Verizon, Bell Canada and telecom service providers already offering IBM Cloud Direct Link services.

Comcast Business already claims to be the nation's biggest cable provider to small and mid-sized businesses. The IBM partnership could be a way for Comcast Business to grow, especially among larger businesses and enterprises.

Enterprises will have "more choices for connectivity so they can store data, optimize their workloads and execute mission-critical applications in the cloud, whether it be on-premise, off-premise or a combination of the two," said Jeff Lewis, vice president of data services at Comcast Business, in a statement. Customers can select speeds up to 10 gigabits/second.

Other than the price of connectivity and the ability to potentially offer lower prices than AT&T and Verizon, analysts said they aren't sure what Comcast is providing enterprise customers that is distinct. Neither Comcast nor IBM announced pricing.

"Business services is the only area of substantial growth at Comcast right now," said Bill Menezes, an analyst at Gartner. "It makes sense for Comcast to align with as many major partners as possible so their customers see Comcast as a significant, broad player who can meet their requirements across major regions and services. Cloud is a major demand item for the enterprise right now and Comcast doesn't want to miss out on business by having too few customer options.''

The same can be said for IBM as well. "IBM is trying to connect with all the major carriers and network connectors to ensure that they are not shut out of the enterprise cloud business," said Jack Gold, an analyst at J. Gold Associates. "IBM sees this partnership as potential leverage, particularly against the likes of Microsoft Azure, Google Cloud and AWS, which have a larger share of the enterprise cloud market than IBM does."

Gold said IBM also wants to appeal to mid-sized companies that are less likely to have their own dedicated networks and more likely to outsource that capability to carriers and cable providers. "This is a potentially easier path for such businesses when they go to the cloud," he said.

IBM is saying to their customers that "we are making the connection part of cloud really easy for you," Gold added.

Some enterprise customers can be expected to buy the Direct Link service from Comcast Business, Gold said. "Enterprises definitely need help with cloud implementations and anything that can make it easier for them is a good thing," he said.

 

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