Equnix Wins LMAX Exchange Deal - Analyst Blog


Noticing the increasing demand for data centres, Equinix Inc. ( EQIX ) is making considerable efforts to open new data centres at regular intervals. Moreover, Equinix is continuously winning business deals and the latest one being a deal from LMAX Exchange.

LMAX Exchange is the first Financial Services Authority regulated forex exchange, which offers spot FX. The Equinix London data centre has selected as the main operational site for LMAX Exchange. The data center will enhance LMAX Exchange's access to sophisticated trading technology and would improve the delivery capabilities of the company.

LMAX is using the Equinix platform prudently, as they are confident of its technical capabilities. LMAX is using the efficient infrastructure of Equinix and puts LMAX Exchange at the client's fingertips.

Moreover, earlier in October, Equinix's Hong Kong data center was selected by Frankfurt-based hosting and co-location services provider RTS Realtime Systems Group. Leveraging Equinix's state-of-the-art IBX data centers, RTS has managed to enhance the speed, performance and reliability of its services by directly connecting to network service providers and financial trading companies operating within the center.

Again in Dec 2012, Equinix announced that CBOE Holdings, Inc. ( CBOE ) has moved its CBOE Command trading engine platform to the NY4 International Business Exchange (IBX) data center to New Jersey.

This will bring the fastest exchange platforms from Chicago to the New York area, thereby enhancing the efficiency and service delivery process of CBOE.

To enhance its customer base even more and to win more deals in some designated areas, Equinix had previously announced plans to expand further in the Middle East via its newly-acquired International Business Exchange (IBX) data center in Dubai. The data centre will host 650 cabinets within its 44,000 square feet area. The first phase, which is likely to be fully operational by Jan 1, 2013, will cost around $40.0 million.

The growing demand for big data exchanges call for greater usage of data centers. To meet this global need, Equinix is expanding its IBX data center footprint globally and becoming popular among tech majors looking for data management. The company's worldwide presence has resulted in high network density with a vertically focused approach, which will continue to support demand.

The company reported decent second quarter 2012 results with earnings per share exceeding the company's expectation. Moreover, revenue improved substantially on a year-over-year basis backed by improved colocation, interconnection and managed infrastructure services. Guidance for the third quarter and fiscal 2012 were encouraging.

However, high debt, competitive threats from the likes of AT&T Inc. ( T ) and Verizon Inc. ( VZ ), and European exposure keep us on the sidelines.

Equinix carries a Zacks #3 Rank, implying a short-term Hold rating.

CBOE HOLDINGS (CBOE): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CBOE , EQIX , T , VZ



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