Back to top

Analyst Blog

Savvis Inc., a subsidiary of CenturyLink, Inc. (CTL - Analyst Report), has recently unveiled its latest technological addition, Symphony Cloud Storage. This new product is a cloud based platform that offers unlimited date storage solution and accessibility across the globe.

The cloud product has initially been launched in data centers in London, Singapore, Toronto, Washington, D.C and California. The service is currently available to selected Savvis clients, but will be commercially accessible by early 2013.

The global market for cloud computing is on the rise and steadily making a dominant position on the information technology front. According to market reports, the global market of cloud is moving at a cumulative growth rate of 30% and expected to hit $270 billion by 2020. As a result, most of the technological companies including telecommunications are considering it as a potential future opportunity.

For carriers like CenturyLink, entering cloud marklet does not only mean expanding its service portfolio but also extending its reach beyond its domestic markets. 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 has resulted in revenue accretion and also expanded CenturyLink’s services beyond conventional market of core local phone business.

CenturyLink currently has expanded its footprint in the hosting managed cloud services business to 50 data centers in North America, Europe and Asia. The company continues to expand data centers this year with an aim to generate higher revenue growth in managed hosting and cloud services.

However, stiff competition from other low cost telecom operators like LEAP Wireless International Inc. and increased operating expenses resulting from the acquisitions may impede the company’s growth trajectory.

CenturyLink retains a Zacks #2 Rank, implying a short-term (1-3 months) Buy rating. For the long term, we have a Neutral recommendation on the stock.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%