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Verizon Boosts Virtual Network Services With Cisco's Solution

In a concerted effort to enhance network virtualization capabilities, Verizon Communications Inc. VZ has expanded its Virtual Network Services (“VNS”) portfolio with the addition of a new hybrid platform from Cisco Systems, Inc. CSCO. The purpose-built 5000 Series Enterprise Network Compute System (“ENCS”) from Cisco is likely to redefine the networking ecosystem for enterprise customers and strengthen Verizon’s position in this niche market.

Expediating the digital transformation of customers, Verizon’s VNS portfolio helps replace traditional network devices, such as routers, firewalls and switches, with state-of-the-art virtual network functions (“VNFs”). It combines network services and functions into a single, executable package to deliver integrated hardware and software functions, which can be easily scaled up or down to adapt to the evolving business demands. Moreover, VNFs reduce the need for manual intervention, improve flexibility and agility to prioritize actions and promptly respond to any situation from a remote central location. In addition, the VNS portfolio helps reduce network latency and improves overall application performance by eliminating the need for a dedicated Internet access device and other hardware to run the network.

With the introduction of Cisco’s ENCS platform, Verizon has further enriched its VNS portfolio, offering enterprise customers a more responsive, scalable and flexible network. Combining the best attributes of a traditional router and server with a smaller infrastructure footprint, it offers low cost of ownership with software-defined flexibility and performance. An easily deployable end-to-end solution makes this hybrid platform a perfect choice for enterprise customers to stay resilient and competitive in a dynamic world. Furthermore, the ability to remotely control the networking functions amid the coronavirus pandemic makes it a lucrative option for enterprise customers.

Moving forward, Verizon expects considerable business growth in both Wireless and Wireline businesses in 2020. The company expects healthy improvement in margins on the back of continued strong FiOS network and strategic services in the Wireline business. The company’s efforts to augment profitable growth include improving operating and capital efficiency. In the enterprise and wholesale businesses, Verizon is changing its revenue mix toward newer growth services like cloud, security and professional services. Also, Verizon is looking forward to capitalizing on the countless innovative technology solutions being developed in the Internet of Things and the telematics ecosystem across multiple industries. The company’s focus on online content delivery, mobile video and online advertising should stoke growth.

Notably, the stock has lost 0.7% over the past year against the industry’s growth of 0.5%. It remains to be seen whether such collaborations with Cisco can reap returns for the company in the near future.



Nevertheless, we remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the industry are T-Mobile US, Inc. TMUS and Telenav, Inc. TNAV, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

T-Mobile has a long-term earnings growth expectation of 18.9%. It delivered a positive earnings surprise of 19.4%, on average, in the trailing four quarters.

Telenav delivered a positive earnings surprise of 108.3%, on average, in the trailing four quarters.

5 Stocks to Soar Past the Pandemic

In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.

See the 5 high-tech stocks now>>


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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
 
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
 
Telenav, Inc. (TNAV) : Free Stock Analysis Report
 
TMobile US, Inc. (TMUS) : Free Stock Analysis Report
 
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