TDS Telecom (TDS - Free Report) recently launched its new personal cloud service – younited by F-Secure. The new product is designed to work on mobile devices and is accessible anywhere.
While the new launch will result in enhanced market share for the company, we believe it will help the company expand cloud service in the retail segment, beyond the conventional enterprise market.
According to the press release, an unlimited number of devices can be backed up using younited with ready access to the younited website or the younited app for mobile devices, which is available for both the iOS and Android operating systems. Apart from simple backup service, younited also allows customers to organize files and create collections for sharing, using secure email and text links or by linking to a Chromecast TV dongle. Customers also have the option to unshare previously shared files for additional control over their digital footprint.
The service shall cost $5.95 per month. Alternately, it can also be purchased as part of a money-saving Plus Pack. In addition, TDS customers using its previous Backup Online product will automatically be upgraded to younited.
Apart from organic expansion through the launch of innovative products every year in the market, the company’s cloud business remains bolstered by numerous acquisitions. By acquiring Vital Support Systems, LLC for $45 million in 2012, TDS boosted technical capabilities by supporting data center infrastructure, hosting and cloud-based offerings provided through Host and Management Service (HMS) services. Vital Support’s strong foothold in IT services and its expertise in selling recurring services that feature the ReliaCloud offering was an added advantage. With a strong sales pipeline, mostly in application management services, Vital Support is expected to generate significant revenues for TDS, going forward.
TDS has a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in this sector include Telefonica S.A. (TEF - Free Report) and Telkom SA SOC Limited with a Zacks Rank #1 (Strong Buy), and Chunghwa Telecom Co., Ltd. (CHT - Free Report) with a Zacks Rank #2 (Buy).