CenturyLink and WISeKey Ink Deal for Cybersecurity Analytics
CenturyLink Inc.CTL recently inked an agreement with leading cybersecurity analytics firm WISeKey to offer cybersecurity services for Internet of Things (IoT) providers. The companies hope to leverage each other's capabilities to provide seamless managed services for the IoT businesses.
Notably, even though its data center revenues are shrinking, managed and cloud services remains a key area of interest for CenturyLink. Some time ago, CenturyLink had announced that it was exploring several options to divest its data center operations. Persistent sub par performance in the data center services segment has resulted in investors calling for a sale of these assets. Recently, AT&T Inc. T decided to divest its data center business to International Business Machine Corporation (IBM). Windstream Holdings Inc. WIN too sold its data center business to TierPoint last year. Verizon Communications Inc. VZ is also reportedly looking to vend off some of its data centers.
Internet of Things - The Next Big Thing?
With evolving technology, the concept of IoT now looks even more viable. With higher broadband and data speeds, larger cloud service providers, and growing ecommerce prospects, the IoT framework is termed as the next step in the evolution of technology where household devices can seamlessly communicate their data with each other. Moreover, connected devices are particularly helpful for research and development purposes in the fields of science, technology and healthcare. This push to make everyday objects 'smart' may entail creation of new products and services. It is therefore no surprise that many businesses are pushing themselves in this race for innovation in the IoT space. CenturyLink is thus looking to tap these growing businesses by offering them managed secured services.
The Bottom Line
As the connected devices concept becomes a reality, and the number of such devices grow, so will the amount of data exchanged between the devices. However, such devices may face the risk of being hacked and misused in the absence of proper security of the data transmitted between the devices. Recognizing the need to provide security services for such data transmission purposes, we believe CenturyLink's tie-up with WISeKey will give the company a strong opportunity to generate healthy revenues, going forward.
CenturyLink presently carries a Zacks Rank #4 (Sell).