Equinix Opens New Data Center - Analyst Blog
04 April 2013 - 3:36AM
Zacks
Recently, Equinix Inc. (EQIX) and Mapletree
Industrial Trust, a real estate company, inked an agreement to
construct the third international business exchange (IBX) for the
former in Singapore.
The new data center will enable the extension of the Equinix
platform, which will help cater to the growing need for premium
interconnection and data center connection in that region.
This new IBX will be located close to the existing SG1 data
center and will be connected through a fiber optic network. The
connectivity and nearby location will assist SG1 in accessing the
new IBX and thus, will help the business requirements of the
existing customers of SG1. The company plans to unveil the new data
center in the second half of 2014.
The emerging markets including India, Indonesia and China are
expected to witness high spending growth rates during 2014. The
company is attempting to capitalize on this opportunity through its
public cloud services.
Although data center demand is increasing across major
geographic regions, industry tracker “lifelinedatacenter.com”
believes that in 2013, data center companies may have to
incorporate new technologies such as 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
improve infrastructure as well.
Technological enhancement is necessary for the existence and
growth of the data centers. However, the company must work to
reduce its debt level to improve its bottom-line. Further,
competitive threats from the likes of AT&T
Inc. (T) raise our apprehension. European exposure and
industry consolidation ( relating to reduction in demand) are other
headwinds.
Equinix carries a Zacks Rank #3 (Hold). But investors can
consider other stocks such as Arris Group Inc.
(ARRS) and Acme Packet Inc. (APKT). While Arris
has a Zacks Rank #2 (Buy), APKT carries a Zacks Rank #2 (Buy).
(APKT): Get Free Report
ARRIS GROUP INC (ARRS): Free Stock Analysis Report
EQUINIX INC (EQIX): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
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