Equinix Reveals Second Data Center - Analyst Blog
March 15 2013 - 1:50PM
Zacks
In an effort to meet the rising need for data centers,
Equinix Inc. (EQIX) opened the second
International Business Exchange (IBX) data center in downtown
Seattle. This new SE3 data center has been strategically placed
near Equinix’s SE2 data center, enabling existing customers to
expand their operations at the same location.
The improvement in demand is also evident from the findings of
independent research firms such as Gartner. According to this
technology research firm, the total public cloud services market
size is expected to increase from $91.4 billion in 2011 to $206.6
billion in 2016.
The emerging markets including India, Indonesia and China will
see high growth rates. The increase in public cloud services would
automatically increase data center demand.
Another data center industry tracker - “lifelinedatacenter.com”
explains that in 2013, data center companies will face new
technological challenges such as a growing demand for hybrid
technology (a collaboration of private and public clouds),
IT-as-a-service, wherein service providers will maintain
cloud infrastructure within the data center, and remote
employee access technology.The data centers may have to also
work on improving the infrastructure.
Expansion in important markets and consolidation of facilities
in existing ones has been a part of Equinix’s core strategy. The
company is continuously striving to boost its revenue base as well
as profitability by improving its technology to attract more
clients. Moreover, its recurring revenue model has provided the
much-needed support to its revenue stream over the years.
Although Equinix is using new marketing strategies and improving
its technological base to attract more customers, a long sales
cycle, high debt level and lower business potential in Europe may
rationalize its growth prospects.
Equinix carries a Zacks Rank #2 (Buy). Investors can also
consider other stocks such as Acme Packet Inc.
(APKT) and Arris Group Inc. (ARRS), which have a
Zacks Rank #1 (Strong Buy) or CA Technologies
(CA), which has a Zacks Rank #2 (Buy).
ACME PACKET INC (APKT): Free Stock Analysis Report
ARRIS GROUP INC (ARRS): Free Stock Analysis Report
CA INC (CA): Free Stock Analysis Report
EQUINIX INC (EQIX): Free Stock Analysis Report
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