Four private equity firms have formed a consortium to bid on CenturyLink Inc.’s cloud data center business, according to Reuters. The massive telco has been looking to sell the data centers for nearly a year, and a final ownership decision is expected before the end of 2016, ChannelE2E has previously reported.
Many telcos are now retreating to network connectivity services, where new technologies like software-defined networking (SDN) and network functions virtualization (NFV) could unlock new revenue opportunities.
Other cloud services providers are transforming toward the MSP model. Rackspace, which a PE firm also is acquiring, has been pushing hard toward managed services for AWS and Azure, for instance.