Industry Analyst Jeff Kagan on CenturyLink Transforming from Telco to IT Provider of IP and Cloud Services

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Technology Industry Analyst Jeff Kagan comments on a LightReading article about CenturyLink

Jeff KAGAN, Industry Analyst

CenturyLink is in the process of transforming itself from a telephone company to an IT based company, says Technology Industry Analyst Jeff Kagan

CenturyLink is rebuilding itself. They are transitioning from a telephone company of yesterday, to a full service IT provider of IP services for tomorrow, says LightReading, Mar. 4.

Industry analyst Jeff Kagan offers comment.

Aamir Hussain is CenturyLink’s new CTO. Since joining the company four months ago he has been evaluating the organization and is planning to transform from a telco of yesterday to an agile IT leader of tomorrow offering cloud-based IP services.

“It looks like Aamir Hussain has been given the responsibility to transform CenturyLink and bring it into the marketplace as a new competitor in the IT space with IP services," says Telecom Analyst Kagan.

“This is a tall order, but it is just what CenturyLink and every other telephone company needs to do in order to continue to grow going forward. Telephone is yesterday. An IT company with IP services is tomorrow," says Wireless Analyst Kagan.

“This is what AT&T and Verizon have already done over the last decade. They show strong growth and powerful results so I think this is the right path for CenturyLink to take. In fact I wonder what took them so long to begin?” asks Tech Analyst Kagan.

Hussain told LightReading they need to transform from a telephone company to an IT-based services company. He says when looking at the business, he sees them doing a great job in the cloud area, and on the network side, however he didn’t see a way for them to take what they build on the network and put it up on the cloud.

So that’s why CenturyLink is now taking a horizontal functional structure going forward.

“CenturyLink has done a good job to date transforming itself into the cloud space. They have acquired Savvis, Tier 3, AppFog, DataGardens and Cognilytics. They are acquiring much of the manpower and infrastructure they need. However now they must continue to integrate the cloud with offering assorted IP services in the larger IT space.” Says Kagan.

“This is a major transformation that CenturyLink is now in the early stages of. Transforming from a plain old telephone company offering plain old telephone services or POTS, to a full service provider of cloud based services and IP services. This is a major hill to climb both in terms of the technology itself, but also the workers.” Says Kagan.

“Do CenturyLink workers have what it takes to understand and embrace this new IT future, or will they get in the way and slow down the process? I am sure like in other telephone companies the answer is some will do very well in the new company and some will struggle. However CenturyLink needs to go through this process which will take years. This is the same process every other telephone company competitor has gone through already.” Says Kagan.

“Just look at companies like AT&T and Verizon as two examples of large telephone companies who have successfully transformed themselves over the last decade. They have already successfully changed into the kind of company CenturyLink sees as their goal. So it can be done.” Says Kagan.

About Jeff Kagan

Jeff Kagan is an industry analyst, consultant, columnist, author, keynote speaker and futurist.

To schedule a paid briefing of your company, products and services to Jeff Kagan, please contact him by email or phone.

Kagan shares his opinion and views on companies, technologies and competition. He has done this over the last 25 years. He offers comment to reporters on the stories they are working on. He writes weekly columns. He writes daily press releases. He give speeches at industry meetings and conferences.

Kagan’s goal is to help you better understand our changing industry. To see where we have come from, where we are today, where we will be tomorrow and why.

As a consultant he shares his opinions with clients on the changing industry, trends and competition.

He follows wireless, telecom, Internet, cable television, IPTV, Mobile Pay, Cloud, Internet of Things or IoT, M2M and more.

Kagan has been called Technology Analyst, Tech Analyst, Wireless Analyst, Cloud Analyst, Smartphone Analyst, Telecom Analyst, Telecom Industry Analyst and Principal Analyst.

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His speeches are on topics including The Future of Wireless and Telecom, State of the Industry, challenges and opportunities, changing technology, competition, services, winners and losers, why and what we can expect going forward.

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