Level 3 Communications (NYSE:LVLT, news, filings) said this morning that it has launched a new data center service in its Latin American markets. The managed hosting solution is offering usage-based, virtualized computing capacity to enterprise customers, but also guaranteeing resource availability and enabling burst consumption.
Obviously this builds on Global Crossing's services to the region, which were more advanced for them in Latin America than elsewhere in the world thanks to the data center assets acquired with Impsat a few years prior. What has changed, of course, is that after the merger with Level 3's assets the combined company has a global data center footprint. Thus, we can probably look forward to this service's geographic reach to arrive in the US and Europe before long, whereas those regions have been the focus of the integration over the last few quarters.
It has now been 9 months since the merger with Global Crossing closed, which means the uphill part of the integration race should be coming to a close. In the second half, the fruits of the integration's labors will start to show as quarterly adjusted EBITDA should rise to and above $400M by years' end. The effects of new cloud computing services like this one are probably further down the road of course, with organic growth being powered by demand for existing services.
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