Light Reading
New unit, savvisdirect, will offer commodity cloud services, including on-demand apps for business market

CenturyLink Takes On Amazon in the Cloud

Carol Wilson
11/5/2012
50%
50%

Eighteen months after buying cloud services provider Savvis (Nasdaq: SVVS), CenturyLink Inc. (NYSE: CTL) is launching a new business unit that will directly challenge Amazon Web Services LLC in the commodity cloud business.

savvisdirect was launched last week, offering self-service pay-as-you-go options for software, infrastructure, platform or storage clouds, all available in under 10 minutes, according to the company. (See CenturyLink Clouds Up With Savvis Buy.)

Savvisdirect was built from the ground up during the past year. It's a combination of CenturyLink's fiber optic network resources and data center infrastructure front-ended with a user interface that draws on Savvis's IT and cloud expertise, says Andrew Higginbotham, president of savvisdirect. Its services will be “competitively priced” with existing commodity cloud offers.

"This is part of a plan of both management teams and a part of the acquisition strategy to go do this," Higginbotham says. The move reflects work within CenturyLink to be more focused on IT services and to realign its sales force to sell more than network services into the broader business community.

To compete with Amazon and others that have been in the commodity cloud business much longer, savvisdirect built its user interface to be simple, robust, offer more features and provide pricing transparency, says Martin Capurro, director of product management, development and marketing.

The service offers a catalog of standard IT apps -- Microsoft Exchange, Sharepoint and more -- on a one-click basis, along with compute, storage and other standard cloud services. It also has click-to-chat with both sales and support capabilities.

"We know what people have been looking for in terms of service and support and we are making it easy for them to get that," Capurro says.

Savvisdirect is expected to be the gateway service for a more extensive range of Savvis cloud offerings, but that's not its main function. "We mostly see this as a way to reach a broader market," Higginbotham says. "CenturyLink has 1.7 million SMBs on its network and we think we can reach many more of those."

Pricing is one area where savvisdirect will look to compete, on both transparency and overall cost. Higginbotham says his firm's analysis of the market has found that many cloud service providers offer initial services that look inexpensive but layer on charges for add-ons such as email that can create "sticker shock" for small businesses that were looking to save money from using cloud services.

"We are very transparent in our pricing and, in our analysis. We are right out there competing with all of the market," he adds. "We think we have a unique value -- sales, scale and reputation."

— Carol Wilson, Chief Editor, Events, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Bayou Mtn
50%
50%
Bayou Mtn,
User Rank: Light Beer
12/5/2012 | 5:18:02 PM
re: CenturyLink Takes On Amazon in the Cloud


A sizeable chunk of the SMBs are in the medical industry.  Does the new offer include options for HIPAA compliance?

joanengebretson
50%
50%
joanengebretson,
User Rank: Light Beer
12/5/2012 | 5:17:59 PM
re: CenturyLink Takes On Amazon in the Cloud


Interesting post Carol. There seems to be a growing recognition of the importance of the network to cloud offerings. Amazon realized that & is partnering with various network operators around the world -- including Exponential-E in the U.K. -- to add value to their cloud offerings.


Perhaps CenturyLink/ Savvis will be able to leverage the fact that the combined company can offer both cloud services and network connectivity.

Flash Poll
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Light Reedy
Numbers Are In: LR's 2014 Salary Survey

7|24|14   |   1:25   |   (5) comments


Our fourth annual Salary Survey paints a picture of who's hiring, firing, earning, and yearning for a change in the telecom industry.
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
LRTV Huawei Video Resource Center
Orange Tunisia Discusses Multi-Band Antenna With EasyRET Solution

7|4|14   |   2:45   |   (0) comments


As new site acquisition becomes more difficult, Orange Tunisia has requested multi-band antenna to support UMTS and LTE innovation. Some things considered include reducing the cost of antenna maintenance and having high reliability antenna and EasyRET solution.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Packet Design asks network professionals how they handle the cloud, SDN, and network management.
Today's Cartoon
Hot Topics
The Municipal Menace?
Jason Meyers, Senior Editor, Utility Communications/IoT, 7/22/2014
Cisco Puts a Fog Over IoT
Sarah Reedy, Senior Editor, 7/23/2014
Apple Earnings: Strong iPhone Sales, iPad Sales Slump, $7.8B Profit
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/22/2014
GM: 10 Car Models on Road With AT&T's LTE
Dan Jones, Mobile Editor, 7/18/2014
Like Us on Facebook
Twitter Feed