Yesterday, CenturyLink, Inc. CTL announced the opening of a new CenturyLink Cloud data store in the Asia-Pacific region. Following the announcement, the company’s shares rallied nearly 2% yesterday.
Notably, this public cloud platform is available in nations like Germany, United Sates, United Kingdom and Canada. Also, in line with its expansion plans, CenturyLink has announced the opening of a data center in Singapore as well.
We believe that the new data center will allow the company to tap in on opportunities in the enterprise business and significantly promote its cloud products. Meanwhile, CenturyLink is keen on enhancing its infrastructure to meet the growing needs for cloud hosting and colocation services. Further, the company’s strong network capabilities, integrated hosting and network solutions will promote further growth in the cloud business.
With around 58 data centers spanning across North America, Europe and Asia, CenturyLink aims to capture more business by increasing its center count in strategically suitable and secure locations, in turn boosting interconnectivity within the company’s core operations.
Previously, CenturyLink had acquired public cloud service provider, Tier 3, in order to boost its cloud development and data hosting capabilities. CenturyLink believes Tier 3’s public multi-tenant cloud platform, coupled with its network and data center footprint and managed services team, will contribute strongly to growth going forward.
Currently, CenturyLink has a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks worth considering in this sector include Telenav, Inc. TNAV, Aruba Networks, Inc. ARUN and Harris Corp. HRS. All these stocks hold a Zacks Rank #2 (Buy).
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