14-10-2015, 22:39 #1
[EN] Analyst: US Telcos Should Consider Selling Hosting Units
Verizon's NAP of the Americas in downtown Miami
by Chris Burt on October 14, 2015
Investment banking firm Cowen and Company initiated coverage of CenturyLink with a call for the telco to sell its cloud-based web hosting business. The analysis is part of a broad examination of CenturyLink’s revenue streams and is representative of the telecom cloud provider segment more generally, according to Cowen analyst Gregory Williams.
“The investor community has pressured the company to sell the hosting business,” wrote Williams. “However, management remains adamant that the colocation/hosting business is a key differentiator and integral growth driver of the story.”
In giving CenturyLink a neutral rating and a target price of $28 per share, Williams notes that the company’s S&P-best 8.4 percent dividend is balanced by a need to stabilize revenue with diverse performance across different business divisions. CenturyLink shares were up slightly in Wednesday afternoon trading at just above $26.
“Since acquiring Savvis … the hosting product segment could be seen as a disappointment as the segment experienced elevated (customer) churn, a $1.1 billion asset write-down in 2013 and grew just 4.5% in 2014,” Williams said.
He also noted that telecom companies have generally struggled in the cloud computing field, and that the two larger US telecoms Verizon and AT&T could also sell their “colo/hosting business assets.” Verizon jumped into the cloud business with the 2011 acquisition of Terremark for $1.4 billion.
Williams also points out that Congress could renew a tax law which would allow CenturyLink and similar companies to deduct capital equipment purchase costs immediately instead of gradually, which would reduce their tax burden.
While time will tell whether CenturyLink management are correct about the importance of its cloud-based hosting services, or the investor community is right and they should leave hosting to the more IT and networking-focussed companies which seem to be having more success, CenturyLink appears to be fully committed to the hosting business.
Savvis was merged into CentruryLink in a $2.5 billion deal completed in 2011, before the Savvis brand was retired early in 2014. Since then CenturyLink has grown its hosting and cloud services portfolio with several product launches and acquisitions, including the April purchase of NoSQL DBaaS company Orchestrate. CenturyLink was even rumored to be a possible buyer for Rackspace last year.
This first ran at http://www.thewhir.com/web-hosting-n...-units-analyst
14-10-2015, 22:55 #2
Cowen looks at telecom struggles with cloud hosting
- In Cowen's new look at telecoms, it took up the issue of how telecom service providers face their struggles with cloud computing.
- Many providers have struggled as newcomers to the business, analyst Gregory Williams wrote. Investors have pressured CenturyLink to sell its hosting business -- it bought data-center operator Savvis for $2.5B -- but "management remains adamant that the colocation/hosting business is a key differentiator and integral growth driver of the story."
- Wireless leaders have the same issues, he says. "It would not be surprising for Verizon and/or AT&T to sell some or all of its nonstrategic (and underperforming) colo/hosting business assets ... At a recent sell-side event, Verizon management acknowledged that its Terremark assets served a specific niche effectively (enterprise/gov't security and manageability) but cannot compare to more comprehensive cloud assets in the marketplace."
- Verizon bought Terremark for $1.4B four years ago.
14-10-2015, 22:59 #3
CenturyLink, AT&T, Verizon still find cloud hosting a challenging business
October 14, 2015 | By Sue Marek
CenturyLink, Verizon and AT&T are still struggling to make their cloud hosting businesses a key part of their growth, but an analyst with Cowen & Company said that CenturyLink management is adamant about keeping its colocation and hosting business even though investors have pressured the company to sell it. However, he added that AT&T and Verizon might be less inclined to hold onto their cloud assets.
According to Investor's Business Daily, Cowen & Company analyst Gregory Williams wrote in a research note that the CenturyLink management still believes that its colocation and hosting business is a key differentiator and growth driver for the company.
However, he said he would not be surprised if Verizon or AT&T did sell some or all of their colocation/hosting business assets. Williams noted that at a recent investor event Verizon management said that the company's hosting business, which it acquired when it purchased Terremark, only serves specific niches like the enterprise and government security areas.
Williams emphasized that these companies are fairly new to the cloud hosting area. CenturyLink, of course, purchased much of its hosting assets from data-center company Savvis, which it acquired in 2011 for $2.5 billion. The deal was championed because the Savvis assets when combined with the cloud and data center assets CenturyLink purchased from Qwest gave it a global reach and greater colocation and managed services capabilities. With the Savvis acquisition, CenturyLink has 48 data centers in North America and Europe plus more than 207,000 route miles of fiber.
Earlier this year CenturyLink extended the reach of its cloud service by making its hybrid IT solutions available to HP customers through a partnership with the company. The telco has also inked a similar deal with Dell.
Meanwhile, Verizon acquired Terremark in 2011 for $1.4 billion giving it access to data centers around the globe. The company has said that its cloud and hosting services nicely complement its machine-to-machine business that it is also building.
- See this Investor's Business Daily article
17-10-2015, 21:09 #4
How Cloud Services Are Changing The Telecom Game
by Gina Narcisi on October 16, 2015
The cloud is the hottest thing to happen to the telecommunications industry since IP-based communications began replacing plain old telephone service. The cloud has introduced a new way to deliver service, and carriers are providing connectivity -- the way to get to the cloud.
Executives from Verizon Enterprise Solutions, Comcast Business and IBM talked up the cloud during the Infrastructure Services Roundtable at the XChange 2015 conference hosted by The Channel Company, the publisher of CRN. Here is their take on the state of cloud services today, the opportunities service providers are seeing in the cloud, and how partners will be critical to boosting cloud adoption.
Craig Schlagbaum, Comcast Business vice president of indirect channels, called recent cloud sales success in the channel "meteoric." Solution providers are partnering with carriers and cloud providers in record numbers because of the recurring revenue model, he said.
"We are seeing all-time records being hit with sales through the channel, and it's because adoption of cloud is driving partners to become more involved in this space," Schlagbaum said.
Without connectivity, there is no cloud, Comcast's Schlagbaum said. It's also an important reason why carriers should be involved in the cloud.
"In our view, there's two things left in life. There's the applications and the cloud infrastructure that drives them, and then there is the data networks and connectivity and the networks that carry the bits -- those two things. We're on the network side that carries the bits. The applications are driving that piece, but it's changing the fundamentals of the channel in general," he said.
As the cloud shakes up the way telecom companies deliver services, it's also changing the way partners provide value to their end customers around carrier services. Comcast's Schlagbaum was bullish on the idea that the channel's value will be in providing consulting and migration services around cloud.
"It's a very lucrative business model, the model of agency. I see that as being much more mainstream over time. For those service providers who [follow] that model … it's not about control of the bill," he said.
The cloud is encouraging solution providers to think about the bigger IT picture, said Adam Famularo, global channel vice president at Verizon.
"Traditional resellers that may have not sold any networking in the past are now looking at it in a different light since it's a fundamental piece that attaches their own private IP network to the cloud," Famularo said. "Partners can deliver a more complete customer solution from the application, right through to the network and the cloud."
Helping enable partners to sell cloud-based services starts with encouraging the traditional technology reseller partners to "think a little bit differently," Verizon's Famularo said, in order to include both cloud and networking in their overall portfolios.
"Every single one of our customers is driving the partners to think about how cloud is being orchestrated as part of their IT stack. That drives [partners] to actually look deeper into full solutions, from the network to the software to the applications, straight through to the cloud service that it runs on. That's a change in the game," he said.
According to IBM Vice President of Worldwide Channels Dave Carlquist, the adoption rate of cloud is still partially "gated" because of customer demand patterns and preferences, as well as the readiness of the channel, he said.
"The cloud services opportunity is like a wave that we've seen on the horizon -- you know it's coming in your direction, not quite sure of the scale but it's getting bigger as it comes closer," Carlquist said.
Providing selling model options, as well as a breadth of capabilities to partners, will be critical in "enabling them to adapt to this wave that's crashing onto the shore," he said.
One way to boost cloud adoption is to get more partners on board with selling cloud services because customers trust their technology partners, IBM's Carlquist said.
"One of the benefits I see on the cloud is the ability to deploy technology faster and to develop applications faster, and to mash up and bring together Capability A with Capability B. That comes from just ingenuity, innovation, and skills -- and the channel is core to that," he said.
Última edição por 5ms; 17-10-2015 às 21:18.
19-10-2015, 15:05 #5
Windstream Sells Data Center Biz to TierPoint
The hybrid ILEC/CLEC has entered into an agreement to sell its Hosted Solutions division to TierPoint for $575M in cash.
October 19th, 2015 by Rob Powell
Rumors that Windstream was looking to sell off its data center and cloud arm proved to be correct this morning. The hybrid ILEC/CLEC has entered into an agreement to sell its Hosted Solutions division to TierPoint for $575M in cash.
The two companies also established a reciprocal strategic partnership under which they can each resell the other's products and services through referrals. In other words, Windstream will still be selling data center and cloud to enterprise customers, just through Tierpoint rather than directly and to a wider geographical footprint. Meanwhile, Windstream will be able to spend its capital on its core telecommunications businesses.
Prior to today's deal, Tierpoint operated 14 facilities in 9 states, offering a mix of colocation and cloud/managed services. The acquisition of Windstream's Hosted Solutions division looks like a pretty good fit to that business, bringing with it a presence in the southeastern and midwestern USA. They have been quite acquisitive over the last few years, buying both Xand and CxP, and I wonder if they have yet more acquisitions in mind.
Windstream bought Hosted Solutions in 2010 for $310M after acquiring various fiber and CLEC assets, integrating 5 new facilities into its existing data center footprint and positioning the company for the cloud era. However, the situation has evolved rapidly since, and this year has been one of changes for Windstream. Back in the Spring, they spun off CS&L with much of their network assets and now they've sold off their data centers as well.
That leaves them infrastructure-light as compared to the past, focusing on higher levels of networks and data services. Unless of course the next step is to sell the rest of the company. That doesn't seem to be on the table yet, but you never know.
06-11-2015, 23:03 #6
10-11-2015, 14:40 #7
The Shifting Sands of Infrastructure Ownership
The bulk of the intercity and metro fiber is increasingly in the hands of either private equity-backed operators, public nextgen operators like Level 3 and Zayo, or cable MSOs. The data centers are increasingly owned by either the likes of Google, Amazon, and Apple or the colo specialists like Equinix, Digital Realty, CoreSite, Tierpoint, etc. And Frontier has been sweeping up unwanted rural bits and pieces.
November 10th, 2015 by Rob Powell
When history looks back on the last 20 years of telecom with dispassionate eyes, I think perhaps the trend that will be most visible is the vast shift in who owns (or wants to own) the physical infrastructure on which communications happen. Look at how different things seem to be evolving.
All of the four top US incumbent providers want to own less stuff than they ever have. They sold their towers already of course. Now they are all looking to unload their data centers. Windstream already has a deal in process, AT&T and Verizon have both been repeatedly said to be looking to sell those assets, and now CenturyLink is doing the same thing. Windstream spun off all its fiber assets into a REIT. And now Verizon is even looking to sell off its global enterprise business and the network it runs on. Other than FIOS, which stalled, and wireless backhaul expansion in-territory, none are spending all that much on building new fiber either.
So the towers are in the hands of tower specialists like Crown Castle and American Tower. The bulk of the intercity and metro fiber is increasingly in the hands of either private equity-backed operators, public nextgen operators like Level 3 and Zayo, or cable MSOs. The data centers are increasingly owned by either the likes of Google, Amazon, and Apple or the colo specialists like Equinix, Digital Realty, CoreSite, Tierpoint, etc. And Frontier has been sweeping up unwanted rural bits and pieces.
Remember when Ma Bell owned it all? From the intercity backbones to the only data centers and interconnection points that mattered all the way down to the rented rotary phone in the hall? There was a time when they didn't want to give up control of *any* of that infrastructure.
Now what is it the incumbent providers all want to actually own? Spectrum, regional but non-rural incumbent fiber and copper where competition is limited if present, and a national backbone to keep things hooked up and the traffic flowing. That and the customer relationship, especially in the case of wireless consumers, who they will fight to the death for of course. Everything else is or probably soon will be in other people's hands.
So with all the consolidation, Ma Bell may be closer to being reassembled than ever but she doesn't quite look the same.
It's a good thing for the industry when ownership lies in the hands of people who like the business of both owning it and investing in more of it even in a competitive market. But the scope of the shift is just staggering when you think about it. The descendents of Ma Bell have either distilled dominance down to just a few key things to own, or else they're selling away precisely what made incumbency worth having. Depends on your point of view I guess.
11-11-2015, 15:00 #8
- Data de Ingresso
- Oct 2010
- Rio de Janeiro
É... Eu achava que essas corporate purchases iriam engolir o mercado e reduzir os players. Mas aparentemente eles não conseguem gerenciar isso...