Global data center service provider Equinix Inc. (EQIX) recently announced that it has opened Solution Validation Centers in eight leading markets around the world. This will enable Equinix to meet the growing demand for data center services globally.
This expansion will enable Equinix’s customers to gauge the performance of application based platforms from secure International Business Exchange (IBX) data centers. This new solution will enhance user satisfaction and help Equinix expand its customer base and market share.
The Equinix Solution Validation Center bridges the gap between network, data center and cloud infrastructure, which therefore has the potential to improve its business volume and strengthen its market position. Expansion into the eight strategic markets of Amsterdam, London, Miami, New York and Singapore will reduce the IT risks for its partners and provide a more comprehensive business environment.
The data center business is thriving across geographies and Equinix is uniquely positioned to capitalize on this opportunity. Consequently, it is planning to further expand its Solution Validation Center to four additional locations in 2014.
Earlier, Equinix had opened its second IBX in Rio de Janeiro based on the platform provided by ALOG Data Centers of Brazil S.A. This Rio de Janeiro data center, popularly known as RJ2, will provide better security and mitigate risk thereby strengthening the company’s overall market position.
Equinix’s data center platform has been popular in the financial services, networking and content management industries. Equinix has taken advantage of the fact that many firms in these industries are setting up their bases in South America. Considering the growth prospects in the region, particularly in Brazil, we believe that Equinix will be able to secure a solid revenue stream.
Equinix is also renewing its focus on the Asia-Pacific and Japan (APJ) region. However, increasing competition from the likes of AT&T Inc. (T), European exposure and industry consolidation remain headwinds.
Equinix carries a Zacks Rank #3 (Hold). Investors can instead consider stocks like SanDisk Corp. (SNDK), which has a Zacks Rank #1 (Strong Buy) and Microchip Technology Inc. (MCHP) with a Zacks Rank #2 (Buy).
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