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Equinix | Well Positioned to Benefit From the Huge Shift to Cloud Computing | SKYY

Company Description

Equinix, Inc. is an American multinational corporation headquartered in California, that specializes in the confluence of internet connection, cloud technology and data centers. The company leads in global colocation data center market share, with 200 data centers in 24 countries on five continents. as of 2018, it had approximately 7,200 employees globally. The company converted to a REIT in January 2015[1]. 

Colocation facilities provide space, power, cooling, and physical security for the server, storage, and networking equipment of other firms and also connect them to a variety of telecommunications and network service providers with a minimum of cost and complexity.  It is essentially the backbone of global cloud operations today.  

Data Centers

With 87% of the world’s internet traffic flowing through Equinix’s 200+ data centers, the company dominates the plumbing of the internet economy, with its main focus to protect and connect the digital economy through these numerous data centers.  

Equinix International Business Exchange™ (IBX®) data centers provide access to vital ecosystems where major networks, enterprises, and business partners interconnect to each other and to more than 1,800+ available networks[2]. 

Early in 2015, the firm opened five new data centers on four continents, increasing the company's data center footprint to more than 10 million square feet.  The largest acquisition in company history was announced at the end of May 2015, when Equinix agreed to purchase the British company Telecity Group in a transaction valued at approximately $3.8 billion[3]. The addition of these data centers more than doubled Equinix's capacity in Europe, making the company the region's largest retail colocation provider. The deal also added network and cloud density.

Equinix Cloud

Equinix Cloud Exchange Fabric™ (ECX Fabric) - brings together cloud service providers and users, enabling them to establish affordable, private, high-performance connections within Platform Equinix. ECX Fabric enables networks to streamline their access to the world's largest cloud providers such as Amazon Web Services, Microsoft Azure, Oracle Cloud Infrastructure and Google Cloud on Platform Equinix® via global, software-defined interconnection[4].

In today's digital economy, customers require on-demand, private connectivity to their cloud providers. Among more than 1,400 customers currently using ECX Fabric, leading Network Service Providers (NSPs) such as Spectrum Enterprise, Telstra, Frontier Communications and Axtel are rapidly adopting ECX Fabric in order to meet these evolving digital demands[5].

With NSPs currently utilizing 35% of the more than 14,800 active virtual connections to date, ECX Fabric has the potential to become the de facto global standard for how the world's leading networks connect to the cloud[6].Interconnection is critical for superior cloud performance. As the innovator of the Interconnected Cloud, Equinix enables cloud service providers to interconnect locally to customers, partners and employees while expanding globally to deliver differentiated services to enterprises anywhere. That’s why 500+ cloud companies around the world have made Equinix their home – for the following Cloud platforms/services:

  • Cloud Infrastructure (IaaS and PaaS)
  • Software Services (SaaS and ISVs)
  • Managed Cloud and IT Services

Summary

The growth in Cloud Technology, particularly such cloud-dependent trends such as big data, mobile and the Internet of Things, dramatically increases the value of Equinix’s core interconnection offering. Equinix in effect is the crucial middle man connecting companies that build private clouds on the Equinix platform to the underlying networks and public cloud providers they depend on.  

Equinix has a diverse range of customers – including all the FAANGS, plus the likes of Burger King and other multinationals that use a pay-as-you-go cloud computing requirement. In July 2018 it expanded its relationship with Amazon to cover much of Latin America.

Equinix is incredibly well positioned to benefit from the huge paradigm shift to cloud computing.

Find out more about the HAN-GINS Cloud Technology UCITS ETF (SKYY) here

As of 31st July 2019, the HAN-GINS Cloud Technology UCITS ETF (SKYY) held 4.09% of its weight in Equinix. 

Read out SKYY Whitepaper "Ahead in the Clouds" here

Article Date: 3rd April 2019. 

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