Leading data center solutions provider Equinix Inc. (EQIX) recently announced that its German data center has been selected by Frankfurt-based hosting and co-location services provider RTS Realtime Systems Group. Financial terms of the deal were not disclosed.
Founded in 1992, RTS creates, designs and hosts multi-asset electronic trading software. Its customer groups include exchanges, investment banks, clearing firms, brokers, introducing brokers, proprietary trading firms, hedge funds, commodity trading houses and supply chain management firms.
RTS offers low latency (the time that elapses between a stimulus and the response to it) access to a number of equities, options and futures markets across the world via its global datacenters in the U.S., Europe and Asia.
The latest RTS data center will be placed at Equinix’s FR2 International Business Exchange (IBX) in Frankfurt. It will offer local users quicker access to Eurex and Xetra exchange and trading systems.
RTS shares a long-standing relationship with Equinix. In 2005, RTS linked its data center operations to Equinix’s Chicago IBX. In 2008, the company expanded operations through Equinix’s Chicago-3 IBX data center in Elk Grove Village, Illinois and the New York-4 IBX in Secaucus, New Jersey.
Leveraging Equinix’s state-of-the-art IBX data centers, RTS has managed to enhance the speed, performance and reliability of its services by directly connecting to network service providers and financial trading companies operating within the center.
The growing need for big data exchanges calls for greater usage of data centers. To meet this global need, Equinix is expanding its IBX data center footprint globally and increasingly becoming popular among major players in the tech industry that are looking for data management. The company’s worldwide presence has resulted in high network density with a vertically focused approach, which will continue to support demand.
The company has delivered strong second quarter results and provided a decent guidance for the fiscal year. We believe further growth in the client base and strategic acquisitions will enhance the company’s revenue potential and expand its geographic reach.
We are also optimistic about the company’s recurring revenue model and current expansion plans. Despite all the positives, competitive threats from the likes of AT&T Inc. (T) and Verizon Inc. (VZ) keep us cautious. European exposure and industry consolidation are also causes for concern.
Equinix has a Zacks #3 Rank, implying a short-term Hold rating.
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