Back to top

Analyst Blog

Telecommunication and technology solutions provider Windstream Holdings, Inc. (WIN - Analyst Report) has announced the availability of its enterprise-class Unified Communications as a Service (UCaaS) across the U.S. UCaaS represents a fully managed cloud-based solution, which caters to the enterprise market. The product can be availed at a flat monthly rate.

The main advantage of UCaaS is that it offers a single interface solution for accessing a variety of Unified Communications options. Further, UCaaS product suite hosts in Windstream’s secure data centers and utilizes Windstream’s Multiprotocol Label Switching (MPLS) networking with Quality of Service (QoS).

According to the press release, the hosted IP telephony (Internet Protocol telephony) and unified communications and collaboration (UCC) is projected to reach $13.23 billion in market capitalization in North America by 2020, representing a CAGR of 28.4%. As a result, we believe, the expansion of Windstream’s UCaaS solution (which forms a part of UCC) nationwide will enable the company to tap significant business opportunity from the proliferation in the UCC market.

Apart from the latest UCaaS expansion, Windstream has adopted a number of steps to expand its business horizon. The company has been adding a number of data centers, employing efficient sales people to boost the sales figure and render greater customer satisfaction, and investing in business channels. Windstream had opened three data centers in 2013 and recently opened another one in Charlotte, NC. The company plans to expand the new center by more than 20,500 square feet in a phased manner.

These units are being constructed to cope with the growing demand for data center and cloud-based services from customers all over the nation. The facilities will also lend support to Windstream Hosted Solutions to handle its massive network of cloud computing solutions, data storage and managed service that will aid the company in extending services to business customers more efficiently at a lower cost. We believe these actions will in turn, lead to improved revenues and profitability.

Windstream currently has a Zacks Rank #4 (Sell).

Other Stocks

Better ranked stocks in this sector include Inteliquent, Inc. (IQNT - Snapshot Report), West Corporation (WSTC - Snapshot Report) and CenturyLink, Inc. (CTL - Analyst Report). While Inteliquent and West Corp. sport a Zacks Rank #1 (Strong Buy), CenturyLink carrries a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.