Global data center service provider
) recently announced that it has opened Solution Validation
Centers in eight leading markets around the world. This will
enable Equinix to meet the growing demand for data center
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This expansion will enable Equinix's customers to gauge the
performance of application based platforms from secure
International Business Exchange (IBX) data centers. This new
solution will enhance user satisfaction and help Equinix expand
its customer base and market share.
The Equinix Solution Validation Center bridges the gap between
network, data center and cloud infrastructure, which therefore
has the potential to improve its business volume and strengthen
its market position. Expansion into the eight strategic markets
of Amsterdam, London, Miami, New York and Singapore will reduce
the IT risks for its partners and provide a more comprehensive
The data center business is thriving across geographies and
Equinix is uniquely positioned to capitalize on this opportunity.
Consequently, it is planning to further expand its Solution
Validation Center to four additional locations in 2014.
Earlier, Equinix had opened its second IBX in Rio de Janeiro
based on the platform provided by ALOG Data Centers of Brazil
S.A. This Rio de Janeiro data center, popularly known as RJ2,
will provide better security and mitigate risk thereby
strengthening the company's overall market position.
Equinix's data center platform has been popular in the financial
services, networking and content management industries. Equinix
has taken advantage of the fact that many firms in these
industries are setting up their bases in South America.
Considering the growth prospects in the region, particularly in
Brazil, we believe that Equinix will be able to secure a solid
Equinix is also renewing its focus on the Asia-Pacific and Japan
(APJ) region. However, increasing competition from the likes of
), European exposure and industry consolidation remain headwinds.
Equinix carries a Zacks Rank #3 (Hold). Investors can instead
consider stocks like
), which has a Zacks Rank #1 (Strong Buy) and
Microchip Technology Inc.
) with a Zacks Rank #2 (Buy).