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CenturyLink Buys Tier 3 To Accelerate Cloud Roadmap
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samicksha
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samicksha,
User Rank: Strategist
11/21/2013 | 2:49:31 AM
Re: $200 million more
I guess its one time investment which is required here further you just capital to mainatain, but look at financial gain and power saved , if as CSP i am serving 04 different oragnizations than their power consumption, device management, manpower consumption gets drastically down making me as CSP earn capital and save for my cutomers. Sound like win-win situation.
Li Tan
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Li Tan,
User Rank: Ninja
11/21/2013 | 12:29:43 AM
Re: $200 million more
That's exactly the point - the cloud service is cheap for end user but to run a cloud business, you need heavy initial investment. Cloud computing is a nascent area with high added-value. It's hard to find really good talent and qualified resource to run the business as a cloud service provider. I do wish CenturyLink really get what they paid for.:-)
cbabcock
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cbabcock,
User Rank: Strategist
11/20/2013 | 5:37:46 PM
$200 million more
Six-year old Tier 3, with 60 employees, cost CenturyLink $200 million, according to Bloomberg (http://www.bloomberg.com/news/2013-11-19/centurylink-said-to-buy-cloud-provider-tier-3-for-200-million.html) That's after it paid $2.5 billion for Savvis in 2011. Getting into the cloud services market is not cheap.


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