Synchronoss Technologies scored a long-term contract extension with Verizon that will see the cloud storage platform provider continue to support Verizon’s consumer-focused cloud storage service until at least 2030. The deal is also an important financial marker for the vendor.

Jeff Miller, president and CEO of Synchronoss, explained to SDxCentral in an interview that the deal is a “foundational contract extension” in his firm’s now 10-year relationship with Verizon.

The Verizon Cloud storage service actually runs on Verizon’s private cloud infrastructure, a deal Synchronoss struck nearly a year ago. That deal has Synchronoss continuing to host components supporting access control, authentication and customer lifecycle management.

The Synchronoss service

The white-label service is preloaded onto Verizon devices and allows for users to manage the storage of their on-device information “in a very encrypted manner,” Miller said. The service also supports Verizon’s rapidly growing fixed-wireless access (FWA) service.

“That was something that we did on a customized basis, leveraging a reasonable amount of that work to expand that offering to more customers,” Miller said.

Beyond the extension, Synchronoss notes that the agreement also includes research and development investments for both its platform and the Verizon service. This includes the use of artificial intelligence (AI) and machine learning (ML).

“We've effectively applied machine learning and artificial intelligence to allow that consumer to not only gain access to information, but to categorize it in a very simple way using the metadata on photos or videos. And also utilizing artificial intelligence and generative AI to take what you might have as a photo and you can apply a pencil sketch filter to it or the watercolor filter or a starry night filter to effectively create new art with other photos and videos that you previously created,” Miller said.

Operator independence

Miller also noted that the company has worked on containerizing its platform to allow for easier porting between cloud storage providers. This allows the vendor to offer the platform to other operators and also to run in other cloud environments. This includes domestic work with AT&T using Amazon Web Services (AWS) and work with United Kingdom-based BT.

“We've tried to make our application independent of hosting environments, so we have recently certified, tested and deployed for an Italian operator utilizing Google Cloud, and our environment now is being migrated into that environment,” Miller said. “We pride ourselves on creating a bit of a containerized solution that has the flexibility to work within the environments or the preferences of our service provider client.”

Synchronoss’s platform currently supports more than 10 million consumers worldwide. Miller explained that research from BT showed that customers using the platform are five times more likely to remain with the carrier compared with those who don’t use the white-label service.

“That speaks volumes to the value of having that relationship and to try and own that customer a little more completely,” Miller said.

Verizon deal provides Synchronoss with financial stability

The Verizon extension adds seven years to the previous extension signed in 2020. That deal was originally a five-year extension, with Miller stating the new deal provides the company and its backers with long-term visibility and security. This is especially important as Verizon makes up a large portion of Synchronoss’s business.

The firm has been battling financial headwinds as flat revenues from its cloud-based operations have been dragged down by falling growth in its rich communication service (RCS) messaging and other digital operations. Synchronoss is also in the midst of a potential acquisition by its largest shareholder B. Riley Financial for $1.15 per share. Synchronoss’s stock price has been trading between $0.90 and $1.00 per share since that proposal was announced.

Miller noted that this extension is important to show the operational stability of the vendor.

“Anyone who would look at us to make an investment would want to know where we stand with our largest customers and how those relationships exist,” Miller said. “This provides any potential buyer great confidence and clarification as to what the future of our business is going to look like. This represents a very substantial part of our business and we think this is pivotal to provide comfort and confidence to our existing shareholders that the future's bright, and for any prospective buyer to put them in a position to know that the value the company has just gone up.”

CORRECTION: This story has been corrected to show that the B. Riley Financial offer to acquire Synchronoss' outstanding shares is for $1.15 per share.