- The CEO change to Kate Johnson will help Lumen create a unified vision, the specialist said, assisting the company’s focus on key business areas after stretching itself too thin under previous leadership.
- Lumen is still working through numerous acquisitions it has made over the years in terms of unifying business processes and systems. Recent divestments will allow the company to target its efforts and strengthen its balance sheet.
“I think another investment that would really position Lumen for more success in the future is concentrating their efforts and their investment on the integration of, and the removal of, many of the applications and systems that Lumen has acquired through their multiple acquisitions.” Former team leader at CenturyLink Communications LLC (Lumen Technologies Group)
- Although Lumen is selling its EMEA business, there are few competitors who can service US enterprise customers with European businesses. The company should retain a significant portion of these customers via its partnership with Colt.
- Enterprise contracts are generally for three-year time frames, with break-even points at c30 months – Lumen can be aggressive with renewal pricing. It is likely that enterprises will delay major decisions in coming months over recession fears.
- We also heard that one of Lumen’s higher growth businesses is its internet access business, which is “also very competitive”. The expert believes Lumen should shift internet customers over to fibre. They are also of the view that Lumen should look at its IP-VPN business, as “that technology in general, in the industry, has been declining for approximately four years”.
- Additionally, Lumen has made significant investments in edge compute, and that there is “potential to be a leader here”. Edge compute is Lumen’s “only area that I would say is in growth mode”.
Click here to access all the insights in Third Bridge Forum’s Lumen Technologies – Q1 2023 Update & Competitive Dynamics Interview.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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