) announced plans to take over a Platform-as-a-Service (PaaS)
provider - AppFog, Inc. - for an undisclosed figure. The acquired
company will be added to Savvis Inc. - the subsidiary of
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AppFog - which extends custom-made PaaS capabilities to software
developers and public cloud services through www.appfog.com -
will enhance the product portfolio of Savvis, which renders cloud
computing and managed hosting solutions for enterprises. AppFog
is being utilized by 100,000 developers and more joining
everyday, who roll out more than 150,000 applications.
With this acquisition, AppFog's public cloud PaaS will be
combined with savvisdirect online channel, enabling the company
to offer private, dedicated deployments to Savvis' enterprise
clients. Savvis Cloud suite will also benefit from several
programming languages and interoperability between the public and
private cloud environments of Portland, Ore.-based AppFog.
CenturyLink management views this acquisition as a growth driver
as AppFog's high-quality Platform-as-a-Service offerings along
with Savvis' industry-leading infrastructure base will likely
create a strong and reliable network of could computing services.
In mid 2011, CenturyLink acquired the information technology (IT)
services provider Savvis for $2.5 billion. Since then, the unit
has contributed immensely in uplifting the performance level of
Savvis is on track to enlarge its global foothold with the
expansion of 10 data centers within 2013. The subsidiary aims to
capture more businesses by increasing its data center wings in
strategically suitable and secure locations, boosting the
interconnectivity of the company's core operations.
We believe that the expansion of data centers, launch of new
cloud products and lucrative acquisitions will help CenturyLink
to generate higher revenues and earnings in the coming months.
These initiatives bequeathed several additional benefits like
greater scale of operations and increasing productivity, apart
from providing the company with a competitive edge over larger
telecom carriers like
Verizon Communications Inc.
CenturyLink, which has business tie-ups with
), has a Zacks Rank #3, implying a Hold rating.