CenturyLink 2014 Annual Report Download - page 4

2 • CenturyLink 2014 Summary Annual Report and 2015 Annual Meeting Documents
CenturyLink is providing services and technologies that are
major catalysts in this innovation-driven, fast-moving world.
We hold a unique position in our industry with the people,
technologies, assets and financial strength to help enable
this new world of information and communications. As a
result, we are transforming our company into an integrated
provider of advanced IP-enabled network, cloud/hosting
and IT services.
Our transformation is directly aligned with the
tremendous shift underway in the business market
for advanced IT solutions. Solutions that integrate
centralized computing, mobile access and high-speed
networking are changing how businesses operate.
Companies are increasingly looking to receive these
solutions on demand, which lowers costs, increases
flexibility and eliminates traditional barriers. We are able
to differentiate our services and meet these demands
by combining our network, cloud/hosting and IT service
capabilities to help businesses fully realize these benefits.
In 2014, we added key network and IT solutions to enable
the transition to these new ways of doing business. We
launched more than 20 products and services – including
CenturyLink Private Cloud, Managed Office and Managed
Enterprise – and expanded our Multiprotocol Label Switching
(MPLS), Ethernet, Wavelength and Voice over Internet
Protocol (VoIP) service offerings. Compelling customer
benefits, including simplified operations and lower costs,
drove growing interest and demand from businesses of
all sizes. We also acquired Cognilytics and DataGardens
to gain capabilities in advanced predictive analytics and
Big Data solutions as well as Disaster Recovery as a Service –
high-priority areas for our customers.
In 2014, we invested $3 billion in our business, primarily to
strengthen our network, cloud and hosting capabilities and
support continued growth in advanced IT solutions. At year-
end 2014, our gigabit service was available in 16 cities. We
added more than four terabytes to our IP backbone capacity
in 2014, bringing our total capacity at year-end to 20 terabytes
per second. We deployed fiber to 2,745 cell sites, bringing
the total number of cell towers we serve with fiber-based
solutions to more than 21,000 at year-end. We also opened
new data centers in Minneapolis and Toronto, and launched
managed services in Shanghai.
In addition, we changed how we deliver and market services
to drive increased revenues and provide a better customer
experience. We worked with an increasing number of
partners to expand our distribution reach and accelerate
demand for our services.
We opened our Cloud Development Center in Seattle to
foster collaboration among employees, customers, partners
and industry influencers, and we released new resources for
the open-source community on CenturyLink Cloud – including
Panamax, a Docker management platform – to simplify
application development and deployment.
At the end of 2014, we restructured our organization –
combining our network and hosting sales and marketing
teams, clearly defining our product development and
To Our Shareholders (cont.)
$7,042
$15,351
$18,376
$18,095
$18,031
Operating Revenues
in millions
10 11 12 13 14
$2,045
$4,201
$6,065
$5,559
$5,188
Net Cash Provided
by Operating Activities
in millions
10 11 12 13 14