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Zayo’s acquisition of QOS may sign extra M&A to come back

Zayo Group’s SD-WAN providers are getting a lift as a result of acquisition of QOS Networks this week – and there are hints circulating that there may very well be extra M&A to come back.

However for now, Zayo believes it is discovered an excellent match with QOS Networks. The fiber and IP community supplier at the moment companions with SD-WAN suppliers equivalent to Versa, however Brian Lillie, chief product and know-how officer for Zayo, says the corporate’s enterprise prospects have been asking for extra managed SD-WAN providers.

“There was a rising need by enterprises that have been in 100 to 150 buildings that we had fiber related to, that mentioned, ‘We actually like SD-WAN as a solution to join our workplaces,’ ” says Lillie. As well as, enterprises have been seeking to SD-WAN to attach staff working from residence attributable to pandemic restrictions. “More and more, [customers] have been asking us, ‘May you handle a number of, as much as 100s of websites on our behalf?’

“It grew to become clear to us that we want this over-the-top, white-glove, managed service providing that enterprises can depend on each in companies related by Zayo and related by our companions.”

Zayo manages over 13 million miles of metro and long-haul fiber, primarily in North America and Europe, and Lillie says the corporate noticed a chance to shift to offering enterprise prospects with each the underlay connectivity and over-the-top managed SD-WAN service by becoming a member of forces with QOS.

QOS Networks additionally companions with Versa, in addition to VMware’s VeloCloud and Palo Alto’s CloudGenix and Prisma SD-WAN providers, which is able to diversify Zayo’s managed SD-WAN choices for enterprise prospects, explains Lillie. QOS Networks has deployed over 45,000 SD-WAN edge units and can proceed to function underneath the QOS model as a division of Zayo; the monetary phrases of the QOS acquisition haven’t been disclosed.

Including AI to SD-WAN

Frank Cittadino, CEO of QOS Networks, says QOS additionally brings its AIOps service to the desk to offer SD-WAN prospects with the flexibility to higher analyze information from their SD-WANs. AIOps – a know-how platform the place synthetic intelligence assists IT groups in automating community operations, bettering cloud utility efficiency and supporting sooner safety menace detection and response – is one space that SD-WAN suppliers and managed service suppliers have lately been using to distinguish their SD-WAN platforms.

Masergy, Palo Alto and Juniper are among the many SD-WAN suppliers which have added AIOps to their SD-WAN providers as a solution to separate from the herd.

“As we combine with [our customer’s] methods, it is a seamless manner for enterprises to have selection of CloudGenix, Versa or VeloCloud. They’ll purchase the SD-WAN they need and combine it to the methods that they already function, making the trail of least resistance actually quick,” says Cittadino.

The team-up with QOS will present prospects with extra choices for managed and co-managed SD-WAN providers, provides Lillie. As well as, the 2 corporations say this partnership will strengthen their relationships with cloud hyperscalers, multi-tenant information facilities and carriers which might be investing within the edge, core and fiber-to-the-tower (FTTT), respectively.

Extra M&A on the horizon

Lots of the main networking and safety corporations have already scooped up SD-WAN gamers prior to now few years – Juniper acquired 128 Applied sciences, Cisco introduced on Viptela and Palo Alto acquired CloudGenix – so it is doable Zayo could deliver in additional SD-WAN, SASE or edge networking distributors into the fold, along with QOS Networks.

Zayo grew to become a privately held firm in March of 2020 when EQT Infrastructure acquired it for $14.3 billion. In August of 2020, EQT expanded its footprint within the cloud, information heart and edge community service market with the acquisition of EdgeConneX.

Zayo could even have its sights set on buying managed service supplier Windstream, which managed to keep away from chapter within the fall of 2020.

“A bunch of buyers, together with Zayo and its dad or mum corporations, DigitalBridge and EQT, are reportedly seeking to buy broadband community proprietor Uniti Group and its Windstream enterprise,” reported Gentle Studying’s Mike Dano final October. “An early proposal valued Uniti at $3.5 billion, however the firm is perhaps in search of double that, the Wall Road Journal mentioned.”

— Kelsey Kusterer Ziser, Senior Editor, Gentle Studying


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