Equinix & VMware Partner to Offer Hybrid Cloud Facility

Equinix, Inc.EQIX recently announced a partnership with VMware to offer private and secure connection to VMware Cloud, using Amazon Web Services (AWS), throughout Equinix's International Business Exchange (IBX) data centers, globally.

This hybrid cloud infrastructure will enable enterprises to integrate applications and transfer workloads between on-campus vSphere-based platforms to VMware Cloud using AWS environments through Equinix Cloud Exchange more quickly and reliably.

VMware Cloud on AWS brings together VMware's enterprise-class Software-Defined Data Center (SDDC) software and cloud services to AWS cloud to provide enterprises mobility of their IT infrastructure between private and public cloud resources and services.

Specifically, VMware Cloud on AWS will combine VMware's enterprise-class Software-Defined Data Center (SDDC) software and cloud services with AWS cloud. Further, through the AWS Direct Connect edge node that will be deployed at the company's data centers, will bypass the public Internet and ensure private connectivity. This will provide speed and security, as well as offer dedicated access throughout cloud services and business applications.

Notably, Equinix is one of the largest interconnection partners of AWS, offering AWS Direct Connect deployments at 24 locations. In fact, other Equinix customers without network infrastructure in AWS Direct Connect metros can use ECX Fabric to plug their network reach to AWS Direct Connect regions.

The combined solution will offer AWS services that will likely optimize network performance, reduce cost and increase mobility of the cloud resources. Additionally, it cuts down the requirement to build new infrastructures and transforms a firm's ability to use on-premise infrastructure from any location in the world.

Per Equinix management, "VMware is the market leader in server virtualization, and we are excited to collaborate with them and enable AWS hybrid cloud deployments for enterprises using VMware infrastructure. By offering private and secure connectivity to VMware Cloud on AWS via AWS Direct Connect in Equinix IBX data centers, we enable VMware customers to accelerate their journey to hybrid cloud by seamlessly connecting their VMware workloads between on-premises and the AWS public cloud."

This partnership will likely boost Equinix's position as AWS's interconnection partner. Also, by using ECX Fabric, the company is widening the reach of its audience who may gain from this alliance. Hence, the above-mentioned move is a strategic fit for the company.

The company carries a Zacks Rank #3 (Hold).

Key Picks

Better-ranked stocks from the REIT space include VICI Properties VICI , Park Hotels and Resorts, Inc. PK and PS Business Parks, Inc. PSB . All three stocks carry a Zacks Rank of 2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

VICI Properties' Zacks Consensus Estimate for 2018 funds from operations (FFO) per share has been revised upward by a cent over the past 30 days. Its shares have gained 7.2% in the past six months.

Park Hotels and Resorts' FFO per share estimates for 2018 witnessed 1.3% upward revision in 30 days' time. Its shares have appreciated 29.8% over the past six months.

PS Business Parks' FFO per share estimates for the current year moved up marginally in the past 30 days to $6.39. The stock has rallied 16.6% in six months' time.

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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 Nasdaq, Inc.

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

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