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Equinix Launches VMware's SD-WAN Edge as VFN on Its Platform

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Equinix, Inc. (EQIX - Free Report) deepened its relationship with VMware to offer the latter’s SD-WAN Edge as a virtual network function (“VNF”) on the company’s Network Edge. Moreover, VMware is expanding its footprint in Equinix’s International Business Exchange data centers across the Americas, Europe, the Asia Pacific and the Middle East.

The launch of SD-WAN Edge on Equinix’s Network Edge will enable firms to accelerate digital transformations, while the wider presence of VMware will provide better connectivity for customers globally.

Particularly, Network Edge was designed to cater to the digital transformation needs of companies. It facilitates a quick and flexible way for customers to choose and deploy virtual network services at the digital edge without the need for physical data center deployment or any hardware requirements. Hence, though the virtual deployment of a digital-ready infrastructure, enterprises can effectively reduce capital expenses, and expand their IT and network services globally.

Moreover, by launching SD-WAN Edge on Network Edge, Equinix is delivering a new solution to offer new world-class capabilities to customers, allowing them to work remotely and reduce disruption.

The VMware SD-WAN by VeloCloud solution delivers high-performance, reliable branch access to cloud services, private data centers and SaaS-based enterprise applications. Offered on Network Edge, global companies can bring their own VMware SD-WAN license and deploy the solution in minutes, optimizing network connectivity between site and applications, while eliminating the complexities of managing hardware and connecting to multi-cloud environments.

Specifically, the VMware SD-WAN by VeloCloud solution is a virtual SD-WAN edge service that will help enterprises to choose and manage their direct peering relationships with the cloud service providers through Equinix Cloud Exchange Fabric or Equinix Marketplace. Given the robust prospects for the SD-WAN market, this collaboration is a strategic fit.

Notably, data-center REITs are experiencing a market boom, with growth in cloud computing, IoT and big data, and an increasing number of companies opting for third-party IT infrastructure. The growth rates for the AI, autonomous vehicle and virtual/augmented reality markets are estimated to remain robust over the next five to six years.

Moreover, data centers are poised to benefit from the rising reliance on technology in the wake of the coronavirus pandemic. Thus, data-center REITs like Digital Realty Trust (DLR - Free Report) , CyrusOne Inc. (CONE - Free Report) and CoreSite Realty Corporation (COR - Free Report) will keep witnessing significant demand.

Amid these tailwinds, shares of Equinix have rallied 28.2% as against the real estate market’s decline of 15.1% over the past year.


The company carries a Zacks Rank of 3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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