The global data center company,
), is making all possible moves to expand its foothold in
Singapore. The company rolled out its third International
Business Exchange (IBX) center and expanded its second data
center in that region.
The expansion plan is in line with Equinix's current strategy,
which will help strengthen its grip in the financial and cloud
service market in Singapore. The company also sensed the
increasing demand of its data center space in Singapore and other
The third data center, covering a gross floor area of 385,000
square feet, will become operational in the second half of 2014.
The cost involved is expected to range between $50 and $55
Sensing the data center opportunity in Singapore,
) recently housed a data center in the Equinix campus. Throough
this data center, Oracle will serve customer needs for Oracle
Fusion Applications, which include applications such as
Enterprise Resource Planning, Human Capital Management, Talent
Management, Sales and Marketing, and other such important aspects
of the business.
The demand for data centers in the Asia-Pacific region is
confirmed by a research report published by Gartner. As per the
report, the total public cloud services market size is expected
reach a level of $206.6 billion in 2016. Emerging markets like
India, Indonesia and China will witness high growth rates and
require more data center space.
Although deal wins are adding to the company's revenue, the
high debt level has resulted in higher interest costs. In spite
of all the positives, rising competition from the likes of
) remains a concern. European exposure and industry consolidation
are the other headwinds.
Equinix carries a Zacks Rank #2 (Buy). Investors can also
consider other stocks such as
), which also has a Zacks Rank #2 (Buy).
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