Zayo Acquires QOS Networks in Managed SD-WAN Play

Zayo Group Holdings is buying managed network service provider QOS Networks in a move that bolsters its SD-WAN and edge capabilities.

The move couples Zayo’s fiber network and QOS’ managed SD-WAN capabilities. This provides edge networking services with “global reach, real-time control and visibility and consistent security.”

Zayo’s Brian Lillie

“This acquisition represents our commitment to, and investment in, our edge-to-core, edge-to-cloud and edge-to-edge network services portfolio. We are extremely well-positioned to be a leading provider of networking for the evolving edge at all layers – fiber, optical and packet – and for all players – enterprises, hyperscalers and carriers,” said Brian Lillie, chief product and technology officer at Zayo. “This requires secure, software-defined intelligent network control, management and monitoring capabilities that our customers need in a highly dispersed, multicloud world.”

Colorado-based Zayo isn’t saying how much it’s paying for QOS Networks. California-based QOS will operate as a division of Zayo and retain its brand.

Frank Cittadino

“Joining forces with Zayo will bring our leading SD-WAN solutions into their already robust portfolio of communications infrastructure solutions,” said Frank Cittadino, CEO of QOS Networks. “Combining our end-to-end enterprise SD-WAN solutions and white-glove services with Zayo’s best-in-class fiber and network expertise will allow us to unlock unique value for our customers in the software-defined layer. On behalf of everyone at QOS Networks we are excited for our next chapter with Zayo and we look forward to driving new solutions for our customers.”

Background

Cittadino and Brian Perrott founded QOS Networks in 2012. The company has gone on to deploy more than 45,000 edge devices globally. Its solutions feature SD-WAN offerings from VMware (VeloCloud), Versa and Palo Alto (CloudGenix). Its notable customers include the state of California, which agreed to a five-year contract with QOS for SD-WAN and managed services for the California Department of Technology.

QOS has also landed on the MSP 501 list multiple times, as well as the Inc. 5000.

Zayo first launched an SD-WAN offering in 2018, harnessing Versa’s solution.

Partner Perspective

Jay Morris, chief aggregation officer at advisory firm MOReCOMM Voice and Data Solutions, said the acquisition shows “more of the future unfolding.”

“Combining software and network companies to create additional value and differentiation through multi-network, product and supplier integration. Not unlike other forms of network aggregation that benefit the enterprise market,” Morris told Channel Futures. “The closer we get to a single pane of glass the better.”

Robert DeVita is the founder and CEO of the partner firm Mejeticks. He expressed  surprise and intrigue at how Zayo is developing its managed SD-WAN services through an acquisition.

“It helps to round out Zayo’s SD-WAN offering and gives them more alternatives go to market with multiple underlying providers. It is a little shocking that they bought a managed service provider instead of just partnering with the underlying providers themselves, but that could be a speed-to-market play,” DeVita said.

Devita also noted that Zayo’s Michael Strople expressed that not every enterprise needed SD-WAN in the past.

“WAN is suitable for many,” Stople told Sdxcentral in 2018.

We last chatted with Frank Cittadino in November 2020, when he discussed the future of branch-based SD-WAN and the edge.

Zayo last week announced Lynn Tinney as its new senior vice president of channels and partnerships.