The battle is on and the preferred weapon of choice in today's
marketplace is enterprise and cloud services
capabilities. Windstream's recent acquisition of PAETEC is but one
of many examples of the cloud arms race.
Prior to its acquisition, PAETEC was heavily involved in this race
as well, having scooped up several business focused CLECs,
including Cavalier Telecom and Xeta.
Perhaps Windstream CEO Jeff Gardner said it best regarding the
reasoning behind the PAETEC move, one of many enterprise
acquisitions they have made in the past couple years. Gardner
reports that 70% of Windstream's revenue will now come from
business and broadband services - quite a remarkable feat for this
historically rural ILEC.
That revenue diversification strategy can't be under stated. The
current regulatory environment for ILECs dictates that they build
capability that will generate non-regulated revenue - and a lot of
it. Business services are one of the more promising growth
strategies - especially for telcos who lack a mobile play.
CHR Solutions recognizes that most of our clients lack the scale
and market power to pull off acquisition strategies for cloud
capabilities like what Windstream, TDS, and CenturyLink are
currently doing. But that lack of scale should not prevent
participation in the fast growing cloud and managed
services business lines. We have the tools and product
portfolio to enable similar strategies for our clients. Contact us
to learn how.