CenturyLink® Assures Investors That SD-WAN Business is Growing

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CenturyLink® is seeing growth in their SD-WAN solutions given to business subscribers, although it is only a small part of their revenue stream. The company pointed out that while Multiprotocol Label Switching remains a major source of revenue, the two platforms are progressively linked with regards to adoption of technology.

“We are seeing success in SD-WAN,” said the Chief Technology Officer of CenturyLink®, Aamir Hussain. “Most of our customers buy from us as a hybrid WAN service. They will buy MPLS and then buy SD-WAN as a backup.”

As per CenturyLink’s revenue report for the 1st quarter of 2018, SD-WAN business has surged by 45 percent compared to the same period last year. This year over year growth has put a shade on the 3 percent rise in revenue from CenturyLink’s MPLS business. Yet again, the Chief Financial Officer of the fastest internet provider, Sunit Patel, has said that revenues from SD-WAN business have accounted for less than a percent of total 1st quarter revenue stream. The MPLS business, on the other hand, has made up 14 percent of overall revenue for the same period this year.

“We absolutely see SD-WAN as a great product for us, in combination with our other products,” said the CEO of CenturyLink®, Jeffrey Storey. “Our customers have networking challenges. SD-WAN is a good solution for some of those. MPLS is a good solution for others. Private line, dedicated services, waves, dark fiber, they have different needs for different networking challenges.”

The new CenturyLink® CEO has told investors that the recent acquisition of Level 3 Communications has positioned the Telco giant to make good use of the acquired networking assets to strengthen their SD-WAN business. Last year, Level 3 Communications had launched a managed SD-WAN solution.

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“Now, we still have to have the physical infrastructure to get there,” Storey said. “That’s one of the strengths of the CenturyLink® network is that we can layer SD-WAN on top of the physical infrastructure directly to those customers. But we view it as an opportunity for us to gain more market share, both inside our footprint with existing customers and outside our footprint with new customers and existing customers.”

CenturyLink® offers SD-WAN solutions to business subscribers using the networking technology from the vendor, Versa Networks. The Telco launched an integrated Wi-Fi solution, which combines their network capabilities with the cloud-controlled Wi-Fi technologies of Cisco® Meraki, for small to medium-scale businesses.

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