) has successfully secured a deal from an over-the counter (OTC)
electronic trade processing service provider MarkitSERV, under
which the latter deployed its Credit Center in Equinix
International Business Exchange (IBX) data centers in New York
The Equinix data center enables direct access between
MarkitSERV as well as the ecosystem of major players and new
entrants in the OTC market. Earlier, Equinix was instrumental in
solving the problems of different stock exchanges and financial
Two weeks ago, Equinix had signed another deal with the
Canadian National Stock Exchange (CNSX) - under which CNSX placed
its Point Of Presence (PoP) center in Equinix's TR1 International
Business Exchange (IBX) data center in Toronto.
Placing a PoP has helped CNSX to improve the efficiency of its
trading platform. It has also helped in auctioning the securities
of other Canadian stock exchanges conducted through this
The data center business is thriving across geographies and
Equinix is trying to capture a large part of this market.
Consequently, it is now exploring opportunities in both developed
and emerging economies. Earlier this year, Equinix opened new
data centers in Seattle and Singapore.
While its plans of expansion remain in place, the
consolidation of existing facilities forms part of Equinix's core
strategy. The company has also been striving to boost its revenue
base and profitability, by improving its technology to attract
more clients. Moreover, the recurring revenue model has provided
much-needed support to Equinix, augmenting its revenue stream
over the years.
Moreover, Equinix has been able to reduce its turnaround time.
Earlier, the company was not very quick to close sales after
customers agreed to license cabinet space at any of its IBX
centers. Though the company had been regular in inking deals, its
sales suffered due to the delay in making service renewal
While the various deals have boosted the company's revenues,
its high debt level has resulted in higher interest costs.
Additionally, rising competition from rivals such as
) remains a concern.
Equinix currently carries a Zacks Rank #3 (Hold). Other stocks
worth a look include
), both of which have a Zacks Rank #2 (Buy).
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