Equinix Inc. (EQIX - Analyst Report) recently announced that Aquis Exchange Ltd. selected its London data center (LD4) to set up its European stock exchange. Financial details of the deal has been kept confidential.
The LD4 data center is situated within Equinix’ London Slough campus, which is capable of providing wide access to 30 European market regions, along with 80 exchanges as well as trading platforms. Apart from this, Aquis Exchange will be able to access the Equinix Marketplace. Equinix marketplace allows customers to segregate the potential customers and partners from a total client base of around 4000.
Equinix has been winning deals at regular intervals. Apart from deal wins, the collaborations have also ensured better service and delivery for the customers, which in turn have reduced its turnaround time.
Previously, Equinix delayed the completion of sales after customers agreed to license cabinet space at one of its IBX centers. Although the company is winning deals regularly, the sales cycle has been postponed due to a delayed service renewal decision.
The company has already achieved some business momentum and has developed a huge network of customers within the IBX centers. Direct interconnection with its aggregation of networks, connecting majority of the world’s Internet routes, which ultimately helps the customers to increase the efficiency of their IT infrastructure, remove some complexities of administering and managing their infrastructure, while significantly reducing costs.
This apart, using the Equinix Business Exchange significantly reduce the cost of critical transit, peering and traffic exchange operations by eliminating the costs of private peering or local loops.
Apart from the delay in order renewals, the company is also facing competitive threats from AT&T Inc. (T - Analyst Report) which raise our concern.
Equinix carries a Zacks Rank #3 (Hold). Investors can also consider other stocks in the technology sector such as SanDisk Corp. , carrying a Zacks Rank #1 (Strong Buy), and Western Digital Corp. (WDC - Analyst Report) , carrying a Zacks Rank #2 (Buy).