CenturyLink, Inc. CTL has sealed a three-year extension of its Networx contract with the government's General Services Administration (GSA) and will now be able to supply services to federal government agencies through 2020.
Notably, CenturyLink's Networx Universal and Enterprise contracts were initially set to expire in spring 20Array7. However, the service provider's Networx Universal contract has now been extended through the end of Mar 2020 while its Networx Enterprise agreement has been extended till end-May 2020. Interestingly, both the extensions include a one-year base period with two one-year options.
Notably, GSA's Networx program comprises the largest telecom contract vehicles ever awarded by the federal government. The three-year extension should lend additional time and help ensure a smooth transition of services for federal agencies into the government's new Enterprise Infrastructure Services (EIS) contract vehicle, which is presently an active procurement.
Meanwhile, only recently, CenturyLink added a new Infrastructure-as-a-Service (IaaS) offering – CenturyLink Government Cloud – to its hybrid IT services portfolio. The cloud service is now available to federal government agencies via the Networx contract with plans in place to offer it on other GSA contracts.
Notably, CenturyLink sees it’s managed and cloud services as a key differentiator from other players in the market and has been trying all means to establish itself as a global leader in cloud infrastructure and hosted IT solutions arena designed for enterprise customers. The company’s strong network capabilities, integrated hosting and network solutions have further fueled growth in the cloud business.
Thus, by supplying cloud and managed hosting services over its carrier-grade network, CenturyLink aims to present government agencies with the safety and dependability they require to execute their undertakings.
Zacks Rank & Other Stocks to Consider
CenturyLink presently carries a Zacks Rank #2 (Buy). Other favorably ranked stocks in the sector include Sprint Corp. S, United States Cellular Corporation USM and Windstream Holdings, Inc. WIN. All the three stocks carry the same Zacks Rank as CenturyLink.
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