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Digital Realty Ups Game With New Hybrid IT Solution Offering

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Digital Realty Trust (DLR - Free Report) announced that it launched a next-generation hybrid IT solutions, Data Hub, featuring AWS Outposts.  The solution eliminates data gravity barriers for enterprises and facilitates the fast deployment of critical Amazon Web Services (AWS) infrastructure at centers of data exchange across the globe on PlatformDIGITAL.

Notably, Digital Realty is an AWS Direct Connect Service Delivery Partner and has used regular customer-deployment scenarios for AWS Outposts to develop the pre-configured Data Hub solution.

Further, the hybrid IT solution offers important critical infrastructure, facilitating enterprises to combine public and private data sources, scale their digital business, and be in compliance with data rules and control.

Since AWS Outposts is suitable for workloads that need low latency connectivity to on-premise systems, local data storage or data processing; its deployment on PlatformDIGITAL will enable customers to place hybrid IT workloads at data exchange hubs across the globe and improve performance on a single platform.

Per management, "We are excited about this collaboration because digital transformation is forcing enterprise IT to re-architect towards a decentralized infrastructure delivery model".

Notably, by developing and deploying such IT solutions, the company is enhancing PlatformDIGITAL offerings and strengthening its data-center platform.

Markedly, 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. 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, Equinix, Inc. (EQIX - Free Report) , CyrusOne Inc. (CONE - Free Report) and CoreSite Realty Corporation (COR - Free Report) will likely keep witnessing significant demand.

Shares of this Zacks Ranks #3 (Hold) company have rallied 16.5% as against the industry’s decline of 7.5% over the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 


However, Digital Realty faces stiff competition in its industry. The company competes with several data-center developers, owners and operators, many of whom enjoy the ownership of similar assets in locations same as the company. This is likely to result in aggressive pricing pressure in the data-center market.

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