We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Equinix (EQIX) Expands in Asia-Pacific with 4th IBX in Sydney
Read MoreHide Full Article
Equinix Inc. (EQIX - Free Report) recently inaugurated the fourth International Business Exchange (IBX) data center, SY4, in Sydney, Australia. This is in line with the company’s 2016 Expansion Plan announced in Mar 2016, under which it planned to open four data centers in Tokyo, Dallas, Sao Paulo and Sydney by the end of the year.
This is also the company’s fifth data center in Australia, of which four are in Sydney and one is in Melbourne. With an area of over 135,000 square feet, this facility can accommodate about 3,000 cabinets, including 1,500 cabinets in the first phase of operation. At present, the facility offers data center and interconnection services to more than 20 customers.
Including SY4, Equinix now operates 29 data centers in the Asia-Pacific region. Worldwide, the company’s total number of IBX data centers has reached 146 across 40 countries.
We believe that the recently opened data center will expand the company’s footprint across the Asia Pacific and address rising demand for cloud services in the region. The increase in demand is also evident from the findings of an independent research firm, Gartner Inc. (IT - Free Report) .
Gartner predicts that public cloud services in the mature Asia Pacific market will witness year-over-year growth of 12.8% and reach to $8.11 billion in 2016 from the 2015 level of $7.19 billion. It projects the spending in the market to increase to $12.4 billion by 2019.
An increase in public cloud services would automatically boost data center demand. In the Gartner report, the mature Asia Pacific market covers Australia, New Zealand, Singapore and South Korea.
Expansions in important markets and consolidation of facilities in the existing ones have been part of Equinix’s core strategy. Citing predictions made by IDC, Equinix revealed that cloud computing will continue to grow at a solid pace across the European continent.
As per IDC, the public cloud market in the EMEA region is likely to expand 26% over the next four years. It also foresees the private cloud market to witness 18% growth during the same time frame.
In light of these predictions, the company’s aggressive expansion plan announced in Mar 2016, which includes increasing the total number of data centers to 150, appears to be a step in the right direction. The 2016 Expansion Plan calls for an investment of invest more than $4.5 billion in new data centers, expansion of colocation space and acquisitions.
The company strives to boost its revenue base and profitability through technological upgrades to attract more clients. Moreover, its recurring revenue model has provided much needed support to its revenue stream over the years. The company’s cloud and IT service businesses are its fastest growing segments and account for approximately one-fourth of the top line.
Equinix remains positive on growing demand for data centers attributed to the Big Data exchanges. To meet this demand, the global interconnection and data center company is expanding its IBX data centers globally and gaining popularity among tech companies looking for data management. Thus, the company expects its total addressable market for retail data centers to increase at a CAGR of 8% from 2013 to 2017 and reach $24.0 billion. Based on this projection, Equinix projects a revenue growth rate of 10% through 2017.
However, Equinix has to compete with established communications carriers such as AT&T (T - Free Report) , Level 3 Communications and Verizon Communications, all of which operate data centers.
Moreover, the telecommunication industry is currently undergoing consolidation. As customers combine businesses, they may require less colocation space with fewer networks available to choose from. In addition, increased utilization of existing colocation space could reduce the attractive expansion opportunities available to this Zacks Rank #3 (Hold) company.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Equinix (EQIX) Expands in Asia-Pacific with 4th IBX in Sydney
Equinix Inc. (EQIX - Free Report) recently inaugurated the fourth International Business Exchange (IBX) data center, SY4, in Sydney, Australia. This is in line with the company’s 2016 Expansion Plan announced in Mar 2016, under which it planned to open four data centers in Tokyo, Dallas, Sao Paulo and Sydney by the end of the year.
This is also the company’s fifth data center in Australia, of which four are in Sydney and one is in Melbourne. With an area of over 135,000 square feet, this facility can accommodate about 3,000 cabinets, including 1,500 cabinets in the first phase of operation. At present, the facility offers data center and interconnection services to more than 20 customers.
Including SY4, Equinix now operates 29 data centers in the Asia-Pacific region. Worldwide, the company’s total number of IBX data centers has reached 146 across 40 countries.
EQUINIX INC Price
EQUINIX INC Price | EQUINIX INC Quote
We believe that the recently opened data center will expand the company’s footprint across the Asia Pacific and address rising demand for cloud services in the region. The increase in demand is also evident from the findings of an independent research firm, Gartner Inc. (IT - Free Report) .
Gartner predicts that public cloud services in the mature Asia Pacific market will witness year-over-year growth of 12.8% and reach to $8.11 billion in 2016 from the 2015 level of $7.19 billion. It projects the spending in the market to increase to $12.4 billion by 2019.
An increase in public cloud services would automatically boost data center demand. In the Gartner report, the mature Asia Pacific market covers Australia, New Zealand, Singapore and South Korea.
Expansions in important markets and consolidation of facilities in the existing ones have been part of Equinix’s core strategy. Citing predictions made by IDC, Equinix revealed that cloud computing will continue to grow at a solid pace across the European continent.
As per IDC, the public cloud market in the EMEA region is likely to expand 26% over the next four years. It also foresees the private cloud market to witness 18% growth during the same time frame.
In light of these predictions, the company’s aggressive expansion plan announced in Mar 2016, which includes increasing the total number of data centers to 150, appears to be a step in the right direction. The 2016 Expansion Plan calls for an investment of invest more than $4.5 billion in new data centers, expansion of colocation space and acquisitions.
The company strives to boost its revenue base and profitability through technological upgrades to attract more clients. Moreover, its recurring revenue model has provided much needed support to its revenue stream over the years. The company’s cloud and IT service businesses are its fastest growing segments and account for approximately one-fourth of the top line.
Equinix remains positive on growing demand for data centers attributed to the Big Data exchanges. To meet this demand, the global interconnection and data center company is expanding its IBX data centers globally and gaining popularity among tech companies looking for data management. Thus, the company expects its total addressable market for retail data centers to increase at a CAGR of 8% from 2013 to 2017 and reach $24.0 billion. Based on this projection, Equinix projects a revenue growth rate of 10% through 2017.
However, Equinix has to compete with established communications carriers such as AT&T (T - Free Report) , Level 3 Communications and Verizon Communications, all of which operate data centers.
Moreover, the telecommunication industry is currently undergoing consolidation. As customers combine businesses, they may require less colocation space with fewer networks available to choose from. In addition, increased utilization of existing colocation space could reduce the attractive expansion opportunities available to this Zacks Rank #3 (Hold) company.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>