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Centurylink Engineering

To build world-class connectivity, cloud, and security platforms that enable businesses to thrive in the 4th Industrial Revolution.

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Align the strategy

Centurylink Engineering SWOT Analysis

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To build world-class connectivity, cloud, and security platforms that enable businesses to thrive in the 4th Industrial Revolution.

Strengths

  • INFRASTRUCTURE: Extensive fiber network with 450,000+ route miles globally
  • SECURITY: Advanced cybersecurity capabilities & edge computing solutions
  • EXPERIENCE: 30+ years of enterprise IT & network transformation expertise
  • PLATFORM: Unified digital experience platform for customer self-service
  • PARTNERSHIPS: Strategic alliance ecosystem with major cloud providers

Weaknesses

  • LEGACY: High dependence on declining copper-based network services
  • TRANSFORMATION: Slow pace of transition from legacy to next-gen services
  • DEBT: High debt load of $19.7B limiting investment capacity
  • TALENT: Challenge in attracting and retaining top engineering talent
  • COMPLEXITY: Technical debt in systems architecture limiting agility

Opportunities

  • EDGE: Growing demand for edge computing solutions ($15B+ market by 2025)
  • SECURITY: Expanding cybersecurity services market ($366B globally by 2028)
  • CLOUD: Hybrid cloud connectivity needs driving enterprise demand
  • 5G: Enterprise 5G private network deployments (26% CAGR through 2028)
  • AI: AI-driven network optimization and predictive maintenance solutions

Threats

  • COMPETITION: Aggressive pricing from cable MSOs in enterprise space
  • INNOVATION: Hyperscalers offering direct enterprise connectivity solutions
  • WIRELESS: 5G fixed wireless threatening traditional fiber connectivity
  • REGULATION: Changing regulatory landscape impacting network operations
  • TALENT: Industry-wide competition for limited software engineering talent

Key Priorities

  • MODERNIZE: Accelerate network modernization from copper to fiber
  • AUTOMATION: Implement AI-driven operations to reduce costs & improve QoS
  • INNOVATION: Develop edge computing & security solutions for enterprises
  • TALENT: Attract & retain top engineering talent with cutting-edge projects
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Align the plan

Centurylink Engineering OKR Plan

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To build world-class connectivity, cloud, and security platforms that enable businesses to thrive in the 4th Industrial Revolution.

MODERNIZE

Accelerate network transformation to next-gen platforms

  • MIGRATION: Transition 250,000 copper-based enterprise connections to fiber/ethernet by Q4 2025
  • LEGACY: Decommission 38 legacy platforms, reducing technical debt and maintenance costs by $48M annually
  • AUTOMATION: Implement network automation reducing provisioning time from 14 days to <3 days for 80% of orders
  • ARCHITECTURE: Complete API-first architecture transformation for 85% of customer-facing services
INNOVATE

Develop industry-leading edge & security solutions

  • EDGE: Launch 5 new edge computing solutions generating $15M in new revenue by EOY 2025
  • SECURITY: Integrate AI-driven threat detection into all managed security offerings, improving detection by 75%
  • PLATFORM: Deploy unified digital experience platform for 95% of enterprise customers, raising NPS by 12 points
  • PARTNERSHIPS: Establish 3 new strategic technology alliances to enhance edge computing capabilities
AUTOMATE

Deploy AI to transform operations & customer experience

  • EFFICIENCY: Reduce network incidents by 35% through AI-powered predictive maintenance across 75% of network
  • EXPERIENCE: Implement AI customer service tools reducing resolution time by 40% for 60% of support requests
  • OPERATIONS: Automate 60% of network management tasks, reducing operating expenses by $32M annually
  • QUALITY: Improve service stability with AI-enhanced monitoring, reducing critical outages by 28%
TALENT

Build world-class engineering organization

  • SKILLS: Upskill 2,000 engineers in cloud-native technologies, AI/ML, and DevSecOps practices
  • ACQUISITION: Hire 250 specialized engineers in AI/ML, cloud architecture, and security engineering
  • RETENTION: Improve engineering talent retention by 18% through technical career path enhancements
  • CULTURE: Increase engineering engagement scores by 15 points through technical excellence initiatives
METRICS
  • REVENUE GROWTH: Enterprise Network Service Revenue Growth +1.5%
  • DIGITAL ADOPTION: 85% of customer transactions through digital channels
  • EFFICIENCY: 35% reduction in operational expenses through automation
VALUES
  • Fairness
  • Integrity
  • Honesty
  • Perseverance
  • Commitment to Excellence
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Align the learnings

Centurylink Engineering Retrospective

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To build world-class connectivity, cloud, and security platforms that enable businesses to thrive in the 4th Industrial Revolution.

What Went Well

  • FIBER: Enterprise fiber revenue grew 2.1% YoY despite overall decline
  • COST: Successful reduction of operating expenses by 6.3% YoY in Q1 2023
  • SECURITY: Managed security services revenue increased by 15% YoY
  • CLOUD: Strategic partnerships with major cloud providers expanded by 22%
  • EFFICIENCY: Network operations automation improved MTTR by 18% YoY

Not So Well

  • REVENUE: Total revenue declined 6.7% YoY to $3.7B in Q1 2023
  • LEGACY: Copper-based services declined faster than fiber growth at 9.8%
  • CHURN: Enterprise customer churn increased to 1.4% from 1.2% YoY
  • CAPEX: Capital expenditure delayed on key fiber expansion projects
  • EXECUTION: Digital transformation initiatives behind schedule by 2+ qtrs

Learnings

  • ACCELERATION: Need to accelerate fiber migration to offset copper decline
  • FOCUS: Concentrating on high-margin enterprise segments yields better ROI
  • INTEGRATION: Tech stack consolidation critical for operational efficiency
  • ADOPTION: Enterprise adoption of next-gen services requires more support
  • AGILITY: DevOps practices improve service delivery speed by avg of 35%

Action Items

  • AUTOMATE: Implement AI-driven ops for 35% reduction in manual processes
  • MODERNIZE: Accelerate legacy system decommissioning, target 25+ by EOY
  • TALENT: Launch engineering excellence program to upskill 1,000+ engineers
  • ARCHITECTURE: Finalize API-first architecture roadmap by end of Q2 2023
  • SECURITY: Integrate advanced threat detection into all network services
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Drive AI transformation

Centurylink Engineering AI Strategy SWOT Analysis

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To build world-class connectivity, cloud, and security platforms that enable businesses to thrive in the 4th Industrial Revolution.

Strengths

  • DATA: Vast network data from global infrastructure for AI training
  • ANALYTICS: Established analytics capabilities for network optimization
  • PARTNERSHIPS: Strategic relationships with major AI technology providers
  • INFRASTRUCTURE: Edge computing platform suitable for AI deployments
  • EXPERIENCE: Expertise in managing complex technology implementations

Weaknesses

  • FRAGMENTATION: Siloed data across legacy systems limiting AI potential
  • TALENT: Limited AI/ML specialized engineering talent within organization
  • INVESTMENT: Constrained R&D budget for AI initiatives due to debt load
  • LEGACY: Technical debt hampering rapid AI deployment & integration
  • GOVERNANCE: Immature AI governance & ethics framework for deployment

Opportunities

  • OPERATIONS: AI-driven predictive maintenance saving 30%+ in opex
  • SECURITY: AI-powered threat detection improving response times by 80%
  • CUSTOMER: Intelligent automation reducing service delivery time by 60%
  • NETWORK: AI traffic optimization increasing bandwidth efficiency by 25%
  • PRODUCTS: AI-enhanced edge computing solutions for enterprise customers

Threats

  • COMPETITION: Hyperscalers' advanced AI capabilities outpacing telcos
  • TALENT: Industry-wide shortage of AI/ML engineering specialists
  • REGULATION: Emerging AI regulations potentially limiting applications
  • PRIVACY: Data privacy concerns affecting AI deployment potential
  • COMMODITIZATION: Risk of core connectivity becoming an AI commodity

Key Priorities

  • AUTOMATE: Deploy AI for network operations to reduce costs by 25%+
  • ENHANCE: Integrate AI into security solutions for competitive advantage
  • DEVELOP: Build AI talent pipeline through hiring and upskilling
  • MONETIZE: Create AI-powered edge solutions for enterprise customers