Savvis – a subsidiary of CenturyLink Inc. (CTL - Free Report) which deals in cloud computing solutions – recently declared its plans to facilitate business applications, content management, e-commerce technologies and the powering of big data for enterprises and government departments.
Savvis mainly focuses on IT outsourcing, colocation, managed hosting and cloud along with vertical market expertise, infrastructure optimization and consulting services. The company’s portfolio comprises four popular technological platforms namely, big data, business applications, content management and e-commerce platforms.
Savvis has decided to incorporate IBM WebSphere Commerce to the e-commerce suite and Microsoft SharePoint and WordPress to the content management suite. It also intends to extend its hosted SAP HANA services through the business applications suite. Each of these platforms is equipped with consulting services, such as assessments and guidance on technology strategy and integration approaches.
Implementation of Savvis' e-commerce solution has helped KingsIsle Entertainment (a publisher and developer of online family entertainment such as Wizard 101) to enhance its service offerings.
The global market for cloud computing is on the rise and is steadily creating a dominant position in information technology. As a result, most of the technological companies including telecommunications are considering it as a future opportunity.
CenturyLink’s entry into the cloud market not only expands its service portfolio but also widens its reach beyond the local market. 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 resulted in revenue accretion and also expanded CenturyLink’s services beyond the conventional core local phone business.
CenturyLink currently has expanded its footprint in the hosting managed cloud services business to over 50 data centers in North America, Europe and Asia. The company continues to expand data centers this year with the aim to grow revenues in managed hosting and cloud services.
CenturyLink currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other stocks worth investing in this sector include Leap Wireless International Inc. , Frontier Communications Corporation (FTR - Free Report) and Verizon Communications Inc. (VZ - Free Report) . All three have Zacks Rank #2 (Buy).