U.S. Service Providers Spin off Assets as the Core Business Shifts

Brian Washburn
Brian Washburn

Summary Bullets:

• AT&T, Verizon, Windstream and MegaPath all share asset divestments in their recent history, shedding non-core assets through outright sales or moving them to OpEx.

• Over the long term, market forces can conceivably push asset buyers and asset sellers to evolve in different directions.

Earlier in February, Verizon reached agreements for two major sales: a roughly $10.5 billion divestment of incumbent local GTE telephone properties, and a $5 billion long-term lease/manage/purchase arrangement for its 11,300 wireless towers (see “Frontier Lands the Rest of Former GTE Telephone as Verizon Cuts Deals to Raise $15 Billion,” Feb. 9, 2015). The wireless tower long-term lease details resemble a similar arrangement AT&T reached with Crown Castle in October 2013. Continue reading “U.S. Service Providers Spin off Assets as the Core Business Shifts”

Security: Thinking Big

A. Braunberg
A. Braunberg

Summary Bullets:

  • Dell clearly believes that security is an important strategic capability.
  • There is no standard model for how large technology companies become leading security vendors.

Dell’s acquisition this week of SonicWALL got me thinking again about market consolidation and the geography of the security industry.  What does it say (if anything) about the current state of the security industry that Dell feels the need to be a serious security player?  That question leads to other important questions.  How important is it for large IT technology vendors to have security expertise?  Moreover, if they have that expertise, where should it live organizationally? Continue reading “Security: Thinking Big”