Savvis Inc., a subsidiary of CenturyLink, Inc. (CTL - Free Report) , recently unveiled the Savvis Enterprise Cloud Ecosystem program. The technology will add flexibility to Savvis' enterprise cloud computing environment through partnerships with innovative cloud technology providers.
The Cloud Ecosystem will enable enterprise customers to provide facilities like cloud orchestration and brokerage services like cloud integration, sourcing and procurement, vendor management, cloud governance and control services. The technology is expected to add value to the existing cloud (private, hybrid or public) computing setup of any business.
The growing dependence on information technology and increasing complexities have led enterprises customers to seek simplified technology solutions that cater to their day to day business needs. The cloud ecosystem has been designed to address customers’ need for cloud governance and its lifecycle management.
With the acquisition of Savvis, CenturyLink forayed into the cloud computing business, which is growing by leaps and bounds. The acquisition strengthened CenturyLink’s footprint in the hosting managed cloud services business with data centers in North America, Europe and Asia.
The company continues to expand data centers this year with a view to generate higher revenue growth in managed hosting and cloud services. These acquisitions bequeathed several additional benefits along with greater scale and operational efficiencies, providing the company with a competitive edge over market giants like AT&T, Inc. (T - Free Report) and Verizon Communications Inc. (VZ - Free Report) .
We maintain our long-term Neutral recommendation on CenturyLink Inc. The stock also has a Zacks #3 Rank, implying a short-term Hold rating.