CenturyLink Technology Solutions: A stronger position in the UK market?

In July 2011, CenturyLink acquired managed hosting and co-location provider, Savvis, for $2.5bn. At the time of the acquisition, Savvis was turning over c$1bn. Much of its business was focused in the US, but around 10% of revenue was derived from the UK. With two subsequent cloud acquisitions under its belt (Tier 3 and AppFog in the US), CenturyLink has ventured beyond its telco heritage. However, at the moment CenturyLink in the UK is still only the legacy Savvis business. But if CenturyLink can successfully enable the UK sales team to sell Tier 3/AppFog cloud services, we think what was a solid hosting business could become a more competitive and differentiated player in the local UK market.

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