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CenturyLink Updates Edge Computing Platform for App Developers

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CenturyLink, Inc. recently unveiled the revamped version of its Edge Computing platform — Content Delivery Network (“CDN”) — to create a more reliable, dynamic and customized web experience for application developers. This strategic move is likely to strengthen the company’s position as a leading provider in the content delivery market by reinforcing its commitment toward edge computing services.

The company’s CDN service provides state-of-the-art technology to ensure fast and reliable web content, using the largest distributed platform in the world. It provides continuous monitoring of Internet inconsistencies and reduces latency and data backhaul, ensuring timely and consistent content delivery, performance and quality of service.

The avant-garde content delivery model leverages a secure and private mesh delivery system to offer a fully transparent, customizable and controllable edge platform. It is equipped with open and flexible module architecture. This makes it easier for the application developers to work on the software according to their preferences, creating an agile and personalized edge environment to foster dynamic innovation needs.

Notably, the CDN edge platform provides multiple benefits for enhancing application performance using highly configurable content acceleration and flexible security, with a choice of open source security options, conducive environment for dev/ops, near real-time analytics and access to a proliferating global network.

A couple of months back, CenturyLink had acquired Paris-based Streamroot — a leading provider of video delivery technologies for media groups and enterprise customers — to combine its peer-to-peer networking solutions with CDN. Streamroot was acquired to address subscribers’ burgeoning demand for over-the-top digital platforms and manage peak traffic loads. The acquisition enabled CenturyLink to enrich its video content offerings in bandwidth-constrained areas by utilizing edge computing and data-driven approach of Streamroot, thereby accelerating its transformation for improved viewing experience.

In order to strengthen its position in the market, CenturyLink is gradually shifting focus from integration to transformation efforts. The communications company intends to transform its business operations through product evolution and digitizing of customer interactions, which augurs well for its top-line growth.

Currently, the company is focused on bringing improved operational efficiencies through various methods, including network simplification and rationalization, which would aid in improving its end-to-end provisioning time and drive standardization.

CenturyLink’s strong network capabilities, integrated hosting and network solutions are likely to promote growth in the cloud business. Notably, the company views its managed and cloud services as a key differentiator from other players in the market, which should boost its revenue growth.

Meanwhile, CenturyLink has enhanced broadband speed and invests continuously in network development. The company is also investing in fiber-to-the-tower expansion and has expanded its fiber-based backhaul services. It expects its Managed Office and Managed Enterprise solutions to consistently gain traction and drive higher revenues on the back of increasing demands from small and large business customers.

CenturyLink has a long-term earnings growth expectation of 7.4%. In the past three months, the stock has rallied 32.5% compared with the industry’s 6.3% growth.



Zacks Rank & Stocks to Consider

CenturyLink has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry are Qualcomm Incorporated (QCOM - Free Report) , Ubiquiti Inc. (UI - Free Report) and Gogo Inc. (GOGO - Free Report) . While Qualcomm and Ubiquiti sport a Zacks Rank #1 (Strong Buy), Gogo carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Qualcomm exceeded the Zacks Consensus Estimate in each of the trailing four quarters, the average positive earnings surprise being 8.7%.

Ubiquiti surpassed the consensus estimates thrice in the preceding four quarters, the average positive earnings surprise being 16.1%.

Gogo outpaced the consensus mark in each of the trailing four quarters, the average positive earnings surprise being 39.1%.

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