) has been winning several new deals in the recent past. The
latest addition to this is a deal from CME Group. As per the
agreement, Equinix will collaborate with the European CME Globex
hub to form a facility inside the former's London, Slough LD4/LD5
data center campus. This seems to be a new line of business for
Equinix, which will help the company gain more expertise in
dealing with business and commodity exchanges.
The placement of this exchange hub within Equinix's LD4/LD5
campus will provide CME Group with a significant advantage to
cater to its European customers.
Another important deal win in the recent past was the one with
Priceline. The latter has already started using the Equinix DC6
International Business Exchange data center, located in Va. This
helped Priceline to reduce its server count by 40.0%, reducing
its power consumption by 50%. Moreover, Equinix's solution is
aiding Priceline to improve response time. Priceline is one of
the largest travel booking sites in the U.S.
Moreover, to strengthen its reach and presence in the
Asia-Pacific region, the company opened a new data center in
Singapore. Equinix, in collaboration with Mapletree Industrial
Trust, a real estate company, inked an agreement to construct the
third international business exchange (IBX) 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.
The company has been instrumental in achieving strong business
momentum, which has helped Equinix improve its customer base and
the resultant "network effect" within its IBX centers. This has
helped the company to improve its internet network, which
constitutes around 90% of the global Internet routes.
In spite of soft business during the recent recessionary
phase, Equinix data centers have helped clients improve their IT
infrastructure, which have generated cost savings. Moreover, the
company's data center solutions have helped certain businesses
remove the complexities of administering and managing
infrastructure, which also significantly lowered their costs.
Equinix solutions also help customers reduce the IT cost of
critical transit, peering and traffic exchange operations by
eliminating the costs of private peering or local loops.
Although the solutions provided by Equinix are of great
importance to companies, but the business was affected to a
certain extent in the last couple of years, as companies have not
made fresh investments during the recessionary phase. Of late the
business has picked up.
Moreover, new marketing strategies are already in place for
improving its technological base to attract more customers.
However, a long sales cycle, high debt level and lower business
potential in Europe may rationalize its growth prospects.
Equinix carries a Zacks Rank #3 (Hold). Investors can also
consider other stocks such as
), all of which have a Zacks Rank #1 (Strong Buy).
EQUINIX INC (EQIX): Free Stock Analysis
PEGASYSTEMS INC (PEGA): Free Stock Analysis
PROGRESS SOFTWA (PRGS): Free Stock Analysis
RIMAGE CORP (RIMG): Free Stock Analysis
To read this article on Zacks.com click here.