NEW RESEARCH: Vodafone powers up its cloud and hosting business

With FY14 revenue of £43.6bn, Vodafone is one of the largest mobile network providers in the world. However, it is a business under pressure. Revenue fell 3.5% last year and profit (EBITDA) was down 7.4% to £12.8bn. In Europe (its key markets), service revenue was down 9.1%, while EBITDA dropped 18.3%. Down at the UK level, times are also tough, with service revenue declining 4.4% and EBITDA sinking 9.8%. The performance reflects just how difficult the consumer mobile markets have become as a result of pricing pressure and increased competition; and these trends mean Vodafone has had to re-evaluate its strategy.

The company has therefore committed to refocusing around growth areas through a significant investment programme to improve network infrastructure and build out new capabilities. One strategic growth area is hosting services. The acquisition of Cable & Wireless (CWW) gave it a c£200m hosting business, and brought ‘Big Red’ into the IT services market for the first time. So what are its next steps and is it becoming a force to be reckoned with?

In this CompanyViews note, Kate Hanaghan, Research Director for InfrastructureViews, takes a look at what Vodafone has done with the CWW hosting business and what plans are afoot for future growth. See Vodafone powers up its cloud and hosting business.

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Posted by HotViews Editor at '22:21' - Tagged: cloud   hosting   research   telecoms