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
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Razorsight Expert's Advice on Real-Time Analytics

11|27|14   |   1:43   |   (0) comments


Razorsight's powerful cloud-based Predictive Analytics solutions are used by the world's leading communications and media brands to drive smarter decisions, enable faster actions and optimize outcomes. Get expert advice.
LRTV Interviews
From 4G to 5G: Alcatel-Lucent's Dave Geary

11|25|14   |   09:09   |   (1) comment


Dave Geary, President of Wireless at Alcatel-Lucent, talks about the evolution of the 4G market, small cells, partnerships, 5G and the IoT.
LRTV Huawei Video Resource Center
Building a Secure Telefonica Network With Huawei's High-End Firewall

11|24|14   |   4:37   |   (0) comments


Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
LRTV Huawei Video Resource Center
Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

11|24|14   |   2:50   |   (0) comments


Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
LRTV Huawei Video Resource Center
Saudi Airlines & Its ICT Transformation

11|24|14   |   2:07   |   (0) comments


In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
LRTV Huawei Video Resource Center
Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

11|24|14   |   2:40   |   (0) comments


Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
LRTV Huawei Video Resource Center
FanPlay & Huawei Build a Wireless Agile Smart Stadium

11|24|14   |   2:13   |   (0) comments


FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
LRTV Huawei Video Resource Center
Building an Agile Stadium

11|24|14   |   3:54   |   (0) comments


Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
LRTV Huawei Video Resource Center
Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

11|24|14   |   3:09   |   (0) comments


ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
LRTV Huawei Video Resource Center
Cefinity on Managed Security Services & Next-Generation Firewall

11|24|14   |   7:05   |   (0) comments


Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
LRTV Huawei Video Resource Center
Huawei's Agile Gateway in the Eyes of Cefinity

11|24|14   |   2:11   |   (0) comments


Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
LRTV Huawei Video Resource Center
CTO of Bus-Online Talks About Huawei's Agile Gateway

11|24|14   |   2:53   |   (0) comments


Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Net Neutrality Even Mark Cuban Could Love
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/26/2014
Eurobites: Net Neutrality Battle Looms
Paul Rainford, Assistant Editor, Europe, 11/27/2014
Why 5G Is a Different Beast
Robert Clark, 11/26/2014
New Juniper CEO Can Be Thankful for $14.5M
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/25/2014
Amazon Eyes Ad-Supported Video – NY Post
Mari Silbey, Independent Technology Editor, 11/25/2014
Like Us on Facebook
Twitter Feed