Cloud Arms Race Continues With PAETEC Acquisition

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.

Written by Kevin Kutcher at 00:00
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