Amdocs Limited DOX announced that it has implemented Open Network Automation Platform (ONAP) on the Microsoft Azure cloud platform. Microsoft Azure is an open, enterprise-grade cloud computing service created by Microsoft Corporation MSFT.
Amdocs is currently working with Microsoft to make the ONAP code available to the open source community in May 2018. This will enable network operators to offer network services running on Azure as the primary cloud or as complementary capacity for their private cloud to deploy virtual network functions that are managed by ONAP. Operators are also likely to gain the time-to-market and cost benefits of public clouds by using this platform on Microsoft Azure.
The latest move will aid in the evolution of ONAP to manage a multi-cloud environment where network capacity can be consumed in a dynamic way across a combination of private and public clouds. This reflects Amdocs and Microsoft’s commitment to continue innovating and promoting open source networking solutions to accelerate the adoption of network function virtualization.
Amdocs continues to boost shareholders’ value by continuously repurchasing shares and paying regular dividends. It has successfully combined its core billing and rating technology with customer relationship management software, to emerge as a leader in the market of business support systems.
Amdocs continues to expand its global client base by signing long-term contracts and collaborating with major telecommunication industry players worldwide. It recently completed the acquisition of Vubiquity, a leading provider of premium digital content services and technology solutions, to expand its footprint in the Media and Entertainment Business. The company has also inked a strategic agreement with Amazon Web Services to offer AmdocsONE on the cloud.
With strategic acquisitions, Amdocs has evolved as a unique vendor providing both end-to-end business support solutions and operating support solutions to the carrier marketplace. The company’s earnings before interest, taxes, depreciation, and amortization have witnessed a compound annual growth rate of 4.6% from 2013 to 2017.
Share Price Movement
Following the announcement, Amdocs’ shares inched up 1.4% to close at $66.60 yesterday. The momentum is expected to continue.
However, over the last three months, the stock has returned 1.6%, underperforming the industry’s growth of 6.9%.
Zacks Rank and Key Picks
Amdocs carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the industry are CoStar Group, Inc. CSGP and DXC Technology Company DXC, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CoStar Group has an expected long-term earnings growth rate of 16.8%. It trumped earnings estimates in three of the trailing four quarters, the average being 18.3%.
DXC Technology has an expected long-term earnings growth rate of 10.5%. It surpassed earnings estimates in each of the trailing four quarters, with an average of 23.9%.
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