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Equinix to Offer Alibaba Cloud Services via IBX Data Centers
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Equinix Inc.(EQIX - Free Report) recently got a contract from the cloud computing arm of Alibaba Group (BABA - Free Report) , Alibaba Cloud, wherein it will offer the latter’s cloud services via its International Business Exchange (IBX) data centers. With this agreement, Alibaba becomes the latest member of Equinix’s Cloud Exchange, after Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) and Alphabet Inc. (GOOGL - Free Report) aka Google.
Per the agreement, Equinix will provide high-performance direct network access to Alibaba cloud via Equinix data centers in five markets worldwide, including Hong Kong, Silicon Valley, Sydney, and Washington, D.C.
With this collaboration, Equinix will assist Alibaba customers get the benefit of its cloud services, such as secure connection, outstanding scalability and infrastructure dependability.
Cloud Exchange provides seamless, on-demand and direct access to multiple clouds, across multiple global networks. These virtual circuit connections allow customers to use the cloud of their choice with dedicated, low-latency connections.
In addition, this partnership will enable Alibaba to expand the reach of its cloud platform and provide private connectivity to corporate customers, globally, in an uncongested and cost-effective manner. Moreover, Equinix helps to manage multiple connections through a single port, in turn, making it easier for customers to access the Alibaba Cloud Platform.
Alibaba needs to buck up as competition in the cloud computing market is intense, particularly with players like Amazon already ruling, and Microsoft and Alphabet determined to strengthen their positions in the fast growing segment.
We believe that the recent deal is beneficial for both the companies. By using Equinix’s Cloud Exchange, Alibaba will be able to expand its footprint in Asia, particularly China, and address rising demand for cloud services in the continent.
The increase in demand is also evident from the findings of the U.S. International Trade Administration, according to which Chinese cloud market is likely to touch $20 billion mark by 2020, witnessing a compounded annual growth rate of 40%.
Thus, an increase in public cloud services would automatically boost data center demand. This will ultimately benefit Equinix by bringing in more contracts, thereby bolstering the company’s revenues.
Shares of Equinix have been steadily treading higher on a year-to-date basis. The stock returned approximately 20.9% compared with the Zacks REIT-Equity Trust industry’s decline of 5.7%.
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By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for those who make the right trades early.
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Equinix to Offer Alibaba Cloud Services via IBX Data Centers
Equinix Inc.(EQIX - Free Report) recently got a contract from the cloud computing arm of Alibaba Group (BABA - Free Report) , Alibaba Cloud, wherein it will offer the latter’s cloud services via its International Business Exchange (IBX) data centers. With this agreement, Alibaba becomes the latest member of Equinix’s Cloud Exchange, after Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) and Alphabet Inc. (GOOGL - Free Report) aka Google.
Per the agreement, Equinix will provide high-performance direct network access to Alibaba cloud via Equinix data centers in five markets worldwide, including Hong Kong, Silicon Valley, Sydney, and Washington, D.C.
With this collaboration, Equinix will assist Alibaba customers get the benefit of its cloud services, such as secure connection, outstanding scalability and infrastructure dependability.
Cloud Exchange provides seamless, on-demand and direct access to multiple clouds, across multiple global networks. These virtual circuit connections allow customers to use the cloud of their choice with dedicated, low-latency connections.
In addition, this partnership will enable Alibaba to expand the reach of its cloud platform and provide private connectivity to corporate customers, globally, in an uncongested and cost-effective manner. Moreover, Equinix helps to manage multiple connections through a single port, in turn, making it easier for customers to access the Alibaba Cloud Platform.
Alibaba needs to buck up as competition in the cloud computing market is intense, particularly with players like Amazon already ruling, and Microsoft and Alphabet determined to strengthen their positions in the fast growing segment.
We believe that the recent deal is beneficial for both the companies. By using Equinix’s Cloud Exchange, Alibaba will be able to expand its footprint in Asia, particularly China, and address rising demand for cloud services in the continent.
The increase in demand is also evident from the findings of the U.S. International Trade Administration, according to which Chinese cloud market is likely to touch $20 billion mark by 2020, witnessing a compounded annual growth rate of 40%.
Thus, an increase in public cloud services would automatically boost data center demand. This will ultimately benefit Equinix by bringing in more contracts, thereby bolstering the company’s revenues.
Currently, Equinix carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Equinix have been steadily treading higher on a year-to-date basis. The stock returned approximately 20.9% compared with the Zacks REIT-Equity Trust industry’s decline of 5.7%.
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...
By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for those who make the right trades early.
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