Like several other companies,
) is also taking support from
), which is using the Equinix Platform to improve the efficiency
of its operation and meet the growing demands of the online
Priceline has started using Equinix's DC6 International
Business Exchange data center, which is located in Ashburn,
Virginia. This has been beneficial to Priceline, as it has
reduced its server count by 40.0%, thereby reducing power
consumption by 50%. Equinix's solution is aiding Priceline to
improve response time.
According to a joint study by Gartner and Frost &
Sullivan, the Asia-Pacific will see maximum growth in the data
center business. Gartner also expects China to become the second
largest global data center market by 2015.
Through constant deal wins, the company has been able to add
to its critical mass of customers and has expanded its network
within IBX centers. Direct interconnection with its aggregation
of networks, which serves more than 90% of the world's Internet
routes, enables customers to increase the efficiency of their IT
infrastructure, remove complexities of administering and managing
their infrastructure, while significantly reducing costs.
Although geographical expansion and deal wins are helping
Equinix expand its business, its longer sales cycle means that
revenues are not recognized immediately, so there may not be any
rapid improvement in its results.
The current macroeconomic condition is further extending the
sales cycle, as customers are unable to accurately forecast their
future business plans and are therefore delaying their purchase
Although, the company is making considerable efforts to pick
up additional market share, we prefer to remain on the sidelines
for this Zacks Rank #3 (Hold) stock. Investors could, however,
consider other stocks such as
Arris Group Inc.
, all carrying a Zacks Rank #2 (Buy).
ARRIS GROUP INC (ARRS): Free Stock Analysis
CISCO SYSTEMS (CSCO): Free Stock Analysis
EQUINIX INC (EQIX): Free Stock Analysis
PRICELINE.COM (PCLN): Free Stock Analysis
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