Equinix Inc. (EQIX - Free Report) and its Gold Managed Service Provider partner, Synoptek recently announced a joint effort known as Managed Performance Hub. It is the first ever performance hub that establishes a reliable, secure and private connection to the cloud, which enhances performance and delivers a more consistent network experience. It simplifies networking operations while reducing the cost of ownership.
The solution is built on Equinix’s International Business Exchange (IBX) data center that provides Equinix Internet Exchange and Cloud Exchange. The deal will enable Equinix to address the increasing demand for secure network and quality services from enterprises globally.
The Performance Hub permits the organization to connect its public or private cloud to theEquinix network. The increasing complexity in cloud infrastructure has led to growing demand for such solutions. These solutions increase the flexibility of the infrastructure and reduce costs for companies. It is expected that the lower-cost proposition will lead to quicker adoption of Performance Hub solutions, which bodes well for suppliers such as Equinix.
Going forward, through this solution, Equinix will enable customers to increase the efficiency of their IT infrastructure and remove complexities related to administration and management of their infrastructure, while significantly reducing costs. This attracts customers to use the Equinix platform.
The company remains positive on the 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 and gaining popularity among tech companies looking for data management.
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 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 (VZ - Free Report) , all of which operate data centers.
EQUINIX INC Price
Currently, Equinix has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
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