Telecommunication service provider,
) announced its latest contract win from the U.S. Marine Corps
Combat Development Command in Quantico, Virginia and the Marine
Corps Barracks in Washington, D.C. The new deal, worth $8.5
million and for a period of two years, entails CenturyLink to
provide voice, data network and telecommunications infrastructure
CenturyLink has been successful in winning new contracts from
various organizations including Federal Communications Commission
(FCC). Previously, the company received contracts under the
Networx Enterprise deal worth $9.6 million from General Services
Administration (GSA). This involved the deployment of Wide Area
Network (WAN) services to the FCC, inclusive of private-line
services and Network-Based Internet Protocol Virtual Private
Moreover, it also received $20 million from the U.S. General
Services Administration (GSA) to offer Voice over Internet
Protocol (VoIP) services to GSA over a period of five years
beginning 2012. We believe the company's business growth will
likely enable it to increase its market penetration and also fend
off competition from the likes of
Frontier Communications Corporation
Telephone & Data Systems Inc.
Further, CenturyLink is concentrating on expanding the
business base of its subsidiary Savvis, which has contributed
immensely in uplifting its performance level through cloud
computing and managed hosting solutions for enterprises. This has
helped the company in spreading its wings in the enterprise
market and enabled it to gain prominence for providing key
enterprise solutions various business entities.
In this regard, CenturyLink acquired Platform-as-a-Service
(PaaS) provider - AppFog. This acquired unit - which extends
custom-made PaaS capabilities to software developers and public
cloud services through www.appfog.com - will augment the product
portfolio of Savvis. We view 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 secure and reliable network for developing applications
in the cloud.
Additionally, demand for managed hosting solutions from
customers remains strong as they look to reduce expenses and
enhance efficiency by using these products. CenturyLink also
extended its partnership with VMware Inc. to introduce the vCloud
Hybrid service in its North American Savvis Data Center.
CenturyLink currently has a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Better-ranked stocks in this sector include
), which has a Zacks Rank #2 (Buy).
CENTURYLINK INC (CTL): Free Stock Analysis
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