) London Slough International Business Exchange (IBX) data center
has been chosen by ParFX, a platform provider, for spot foreign
exchange trading. ParFX is a subsidiary of one of the largest
interdealer broker of financial and commodity
Equinix's global presence through its IBX data centers coupled
with its connections with numerous foreign exchange institutional
traders, trading platforms and Electronic Communication Network
primarily prompted ParFX to choose Equinix's data centre.
Moreover, by selecting Equinix's IBX data center, ParFX will
be able to expand its business by connecting to 800 financial
Separately, Kontiki, a cloud-based enterprise video platform
and content delivery network provider, has selected Equinix's LD5
(London-based) IBX data center to expand its European customer
base. For Equinix, these deal wins are expected to support its
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.
Moving on those lines, the company recently declared its plan
to build an IBX data center in Osaka, Japan, and Singapore. More
recently, the company is opening its fourth data centre in Tokyo
named TY4 for an estimated investment of $43 million.
Apart from its plans of expansion, 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 the
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 took a considerable time to close sales
after the customers agreed to license cabinet space at any of its
IBX centers. Though the company is regularly inking deals, its
sales have suffered due to the delay in making service renewal
While the various deals have boosted the company's revenues,
the company must work to reduce its debt level although it has
cleared a considerable amount of debt in the reported quarter.
Additionally, rising competition from rivals such as
) remains a concern. European exposure and industry consolidation
are the other headwinds.
Equinix carries a Zacks Rank #4 (Sell). Investors can also
consider stocks such as
Semiconductor Manufacturing International Corp.
), both carrying a Zacks Rank #1 (Strong Buy).
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