CenturyLink Expanding Business, Buys Networking Assets
CenturyLink Inc. CTL has acquired certain core networking assets from a company formerly known as Active Broadband Networks Inc. CenturyLink has been focusing on shifting its network and shift network functions toward cloud for its business customers by providing software defined networking (SDN) and network functions virtualization (NFV) services. The acquisition is in sync with this strategy and is expected to enable the company to accelerate its top line.
In Oct 2015, CenturyLink committed to build a robust networking platform using SDN and NFV capabilities, through which it aimed to serve its enterprise customers better. The latest purchase will help it to integrate the SDN and NFV capabilities in its network, thereby enhancing end user experience and inducing growth in the business services segment.
Earlier Efforts on Expansion
Earlier in June, CenturyLink bought app management specialist, ElasticBox, in a move to enable its customers to manage applications across 12 different cloud providers including the likes of Amazon.com Inc.’s AMZN Amazon Web Services, International Business Machines Corporation’s IBM Softlayer service, Microsoft Corporation’s MSFT Azure and Alphabet Inc.’s Compute Engine. Through this takeover, CenturyLink will be able to provide a one-stop solution to all its business enterprise customers who use different cloud facilities for different processes by allowing the user to deploy multiple cloud endpoints.
The Bottom Line
While the takeover of the assets is expected to improve the scalability and flexibility of CenturyLink’s cloud services, we believe that the company’s continuous efforts on integrating its platform, backed by its robust network across the country, will allow it to establish its services in the market, thereby boosting its top line.
CenturyLink currently has a Zacks Rank #3 (Hold).
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