Kevin Kelly, managing partner at Benchmark, discusses markets and his options trade for Equinix (EQIX) with Julie Hyman on Bloomberg TV. He believes the ongoing adoption of hybrid-cloud network architectures and shift to digital services will continue to drive market expansion and higher revenue for Equinix. It has brought on Amazon.com, Microsoft, Google, SoftLayer and other infrastructure providers, as well as Software-as-a-Service companies. Additional growth drivers include Equinix’s April 2017 acquisition of 29 Verizon data center colocation facilities and the expansion of private connectivity to Microsoft Azure ExpressRoute.
‘Enterprises’ is its fastest-growing customer segment for Equinix as customers shift to hybrid cloud. The company has used its deep links to cloud and network customers to help maintain the hybrid cloud adoption, especially by enterprises, amid the shift to hybrid cloud architectures and digital services. Cloud service providers are becoming an increasingly important client base prompting Equinix to focus on these customers. Equinix is targeting the top cloud-service providers to expand its directly-connected network, in a bid to attract more enterprise customers to use the company’s exchanges.
Data center REIT Equinix is a giant behind the scenes of our digitally connected world according to a profile by Nareit. In that profile an EQIX executive states, “The only reason you can download a Netflix video in less than 10 seconds in any city in the world is because Netflix has thousands of servers (renting space) in data centers, many of them Equinix centers.” Not only is Equinix the world’s largest data center company, it has the world’s largest ‘Internet Exchange’ footprint with over 9,800 customers.
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