Level 3 taps Cisco’s NSO for NaaS solution

Level 3 Communications has deployed Cisco’s Network Services Orchestrator (NSO) within its on-demand Network-as-a-Service (NaaS) solutions.

With Cisco’s NSO built in, Level 3 is promising to allow for integrating new third-party cloud services and applications more easily and less expensively, while reducing the amount of time needed to provision new services.

Cisco said its NSO has allowed Level 3 to develop a programmable wide area network (WAN) that can automate data services and multiple devices, and orchestrate activation, testing and ongoing service-level assurance.

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Level 3’s Cisco collaboration means it can now offer hybrid cloud connectivity, dynamic capacity allowing bandwidth to scale up to 300 percent, optimized data backup/recovery, and real-time information on network performance and utilization.

“Network resources on-demand represents a huge opportunity for service providers like Level 3 to remain innovative for their customers and competitive in the market,” said Yvette Kanouff, senior vice president and general manager of service provider business at Cisco, in a statement. “This transition to network automation using NSO, is a significant step for offering new opportunities and entering new markets.”

Level 3’s efforts to beef up adaptive network service capabilities come after a somewhat disappointing second quarter that saw higher churn among the low end of its customer base.

Despite the increased customer disconnects, BTIG analyst Walter Piecyk believes Level 3 is a compelling stock and this week opened coverage of the company with a “Buy” rating.

BTIG is forecasting 1.5 percent sequential growth for Level 3’s CNS (core network services) enterprise business. In addition, the analyst firm predicts Level 3’s wholesale CNS business will continue to decline throughout 2016 and into 2017.

That said, BTIG still expects EBITDA margins will continue to expand in 2016 and 2017 as Level 3 realizes synergies from its TW Telecom and Global Crossing acquisitions.

For more:
- read this press release

Related articles:
BTIG opens Level 3 with ‘Buy’ rating, cites free cash flow and recurring revenue
Level 3's Storey: We'll do more to make smaller customers more profitable

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