One of the leading integrated telecommunications' service
) has extended its partnership with
) to include the latter's vCloud Hybrid Service. CenturyLink is
incorporating this new vCloud Hybrid services into its North
American Savvis data centers.
The global market for cloud computing is on the rise and
steadily creating a dominant position in information technology.
According to market reports, the global market of cloud is moving
at a cumulative growth rate of 30% and is expected to hit $270
billion by 2020. As a result, most of the technological companies
including telecommunications are considering it as a future
CenturyLink's entry into the cloud market not only expands its
service portfolio but also widens its reach beyond the local
market. We believe that CenturyLink is gaining significant
momentum in the enterprise market with the introduction of
Savvis' product lines. The acquisition of Savvis in 2011 resulted
in revenue accretion and also expanded CenturyLink's services
beyond the conventional market of core local phone business.
CenturyLink currently has expanded its footprint in the
hosting managed cloud services business to over 50 data centers
in North America, Europe and Asia. The company continues to
expand data centers this year with the aim to grow revenues in
managed hosting and cloud services.
However, stiff competition from other telecom operators like
LEAP Wireless International Inc.
Frontier Communications Corporation
)as well as increased operating expenses resulting from
acquisitions may impede the company's growth trajectory.
CenturyLink has a Zacks Rank #3, implying a Hold rating.
CENTURYLINK INC (CTL): Free Stock Analysis
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