Equinix

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Equinix, Inc.
Public
Traded as NASDAQEQIX
NASDAQ-100 Component
Industry Internet
Founded 1998
Headquarters Redwood City, California, United States
Key people

Jay Adelson, Founder
Al Avery, Founder

Stephen M. Smith
President and CEO
Keith Taylor
Chief Financial Officer
Charles Meyers
Chief Operating Officer
Karl Strohmeyer
President, Americas
Eric Schwartz
President, Equinix Europe
Samuel Lee
President, Equinix Asia Pacific
Products Data centers
Revenue US$2.44 billion (2014)
Number of employees
4,100 (June 2015)
Slogan We Protect, Connect and Power the Digital Economy
Website http://equinix.com
Footnotes / references
[1]

Equinix, Inc. is an American public corporation that provides carrier-neutral data centers and internet exchanges to enable interconnection. The company offers colocation, interconnection solutions and related services to enterprises, content companies, systems integrators and 1,000+ network service providers worldwide. Equinix data centers are also home to more than 500 cloud service providers, and the company operates the Equinix Cloud Exchange, a service enabled by a proprietary software that allows customers to connect to multiple clouds simultaneously.[2]

Equinix operates 100+ data centers (which it calls "International Business Exchanges" – IBXs) across 33 major metropolitan areas in 15 countries on five continents. The company touts its broad geographic reach as a key differentiator, saying it allows its customers to place equipment in close proximity to employees, customers, partners and population centers. The company's Performance Hub offering enables customers to place corporate IT resources near large user populations in data centers connected to many networks and clouds.[3]

The company has its headquarters in Redwood City, California, United States.[1] Equinix reported 2014 revenues of $2.44 billion[4] and is the leading global colocation data center by market share.[5] According to the company website, Equinix’s vision is to “protect, connect and power the digital economy.”[6]

Equinix has been focused on delivering advanced interconnection capabilities from its inception, first between the networks that formed the early Internet, and more recently between the numerous and expanding business ecosystems that must instantly connect for companies to deliver services and compete in the digital economy. Its tagline, “Where Opportunity Connects,”[7] is intended to convey the organization's commitment to enable its customers to benefit from the business opportunities that interconnection makes possible.

History[edit]

Equinix was founded in 1998 by Al Avery and Jay Adelson, two facilities managers at Digital Equipment Corporation. The founders believed that existing data centers would not be sufficient to support the rapid growth of the internet and saw the opportunity to deploy data centers on a much larger scale to support this growth.[8] In an interview,[9] Adelson recalled that the early Internet was “run by cowboys. … It just wasn’t hardened, it wasn’t commercialized. And for those of us that cared, we knew that a company like Equinix would need to exist. Somebody would have to be the steward of all this infrastructure.” Equinix opened to offer networks a neutral place to connect to exchange data traffic and expand their reach, and the company name reflected its early commitment to equal access to interconnection. The word “Equinix,” according to Adelson, is a mash-up of the company’s core attributes: “Equality, Neutrality and Internet Exchange.”[10]

The company quickly began to experience rapid growth and its initial public offering in 2000 raised over $270 million of capital. During the internet/telecom boom, various companies invested in data centers to accommodate the hyper-growth of the internet. When the bubble burst, however, there was an oversupply of data centers and the industry underwent significant consolidation. Equinix managed to survive the internet/telecom bubble and took advantage of the oversupply by purchasing several distressed data centers. In the years that followed, the company experienced significant growth and, between 2003 and 2004, Equinix was the best performing stock on the NASDAQ Stock Exchange.

In 2007, the company announced a $2 billion international expansion plan.[citation needed] That year, the company acquired European data center operator IXEurope, which solidified its position as the leading data center operator in the world. Between 2008 and 2010, Equinix continued its international expansion plan by building or acquiring several new data centers in Europe and Asia-Pacific. In 2010, Equinix acquired Switch and Data Facilities Company, Inc., a U.S. internet exchange and co-location services provider, in a transaction valued at $683.4 million.[citation needed] This acquisition enabled the company to expand its colocation services to new metropolitan markets and ensured that the company maintained its stranglehold on the internet exchange market. Equinix extended its operations in 2012, when it announced partnerships to enter the Dubai, UAE and JAKARTA, Indonesia markets.[11] In 2014, Equinix completed its acquisition of the Brazilian company ALOG Data Centers, which marked its first expansion into the South American market.[12] Early in 2015, Equinix opened five new data centers on four continents, which[13] increased the company’s global data center footprint to more than 10 million square feet[14] and were billed by the company as a significant expansion of its interconnection capacity.[15] Also in 2015, Equinix converted to a real estate investment trust (REIT) in a move to gain tax advantages and enhance shareholder value by offering a regular dividend.[16] In addition, Equinix acquired the professional services company Nimbo in 2015[17] as part of a broader effort to develop its professional services business to assist customers in planning and executing their data center migrations and advancing their network and hybrid cloud strategies.

Equinix announced at the end of May 2015 that it would acquire British company TelecityGroup in a deal worth £2.35 billion.[18]

Data centers[edit]

International Business Exchanges[edit]

Chairman Peter Van Camp describes Equinix International Business Exchanges (IBXs) as “international airports where passengers from many different airlines make connections to get to their final destinations”.[8] Equinix CEO Steve M. Smith said the interconnection available within his company’s broad data center footprint enables organizations to distribute IT closer to employees, customers and markets without having to build and manage the needed connectivity themselves. “We spend a lot of capital to build these facilities and companies take advantage of it.”[19] Equinix IBXs peer IP traffic to over 90% of the world's Internet routes.[20]

Their Internet Exchanges (IX) route internet traffic between over 1,000 telecommunications networks worldwide.[21]

The company established its leading market share by building on the so-called “network effect.”[22] During its early years, many of the world’s largest telecom networks were attracted to Equinix’s network neutrality, which allows any network to connect to any other inside Equinix, as long as both are customers. As top networks were drawn to Equinix, other networks were compelled to become Equinix customers in order to easily and efficiently access the industry leaders.

This density of networks also attracted other businesses that required network services, including major enterprises, Web commerce companies and cloud computing companies. Equinix’s colocation services enable these organizations to outsource their IT infrastructure, so they can focus on their primary business. These companies also colocate their IT infrastructure inside Equinix to be close to their business partners’ systems and exchange data more quickly, and because of the access to the variety of cloud and communications services also inside Equinix.

A primary focus of the company in recent years has been the cloud computing space. In a 2010 interview, Smith said the company’s top priority is to be “the home to as much cloud infrastructure as we possibly can.”[23] The Equinix Cloud Exchange is the focal point of company efforts to draw a heavy concentration of cloud providers inside its IBX data centers, where these providers can act as magnets to the businesses and other entities seeking services in the burgeoning cloud computing market.

Cloud adoption has been consistently hindered by worries about data security.[24] Equinix has worked to address those concerns by creating the Cloud Exchange, which allows organizations to directly connect[25] to cloud providers inside its data centers, rather than through connections established on the public Internet. Equinix describes the Cloud Exchange as a way to make the cloud “elastic,”[26] citing the exchange’s ability to interconnect businesses to multiple cloud providers on-demand and simultaneously, which the company claims enables new efficiency and reduces complexity.

Some analysts warn that long term consolidation in the telecommunications industry will decrease demand for data center space and hurt the growth prospects of companies such as Equinix.[27] But the company argues that accelerated cloud proliferation and adoption, along with the emergence of cloud-dependent trends and technologies such as big data, mobile and the Internet of Things, are dramatically increasing the value of its core interconnection offering.

Equinix predicts that in the interconnected era, companies won’t be able to meet end user’s expectations for service and application performance without instant, simultaneous and secure interconnection to many partners and customers across a broad geographic spread. And the company says it is best suited to deliver that interconnection after investing more than $7.5 billion to expand its data center footprint globally with the intention of linking more organizations to partners and customers they otherwise could not have reached to exploit growth opportunities that otherwise would not have existed.[28]

Data center (IBX) locations[edit]

Europe, Middle East & Africa[edit]

Europe[edit]
Middle East[edit]

Americas[edit]

Equinix data center CH3 in Chicago (2008)
Equinix data center CH3 in Chicago (2008)

Asia Pacific[edit]

Customers[edit]

As of December 2014, Equinix serves more than 4,750 customers worldwide. More than 1,000 different carriers and ISPs now participate in Equinix IBX centers, including:

See also[edit]

References[edit]

  1. ^ a b c d e Cromwell Schubarth (2012-10-29), "Data centers eye the cloud as Hurricane Sandy bears down", San Jose Business Journal, retrieved 2012-10-31 
  2. ^ http://bits.blogs.nytimes.com/2014/04/30/cloud-complexity-simplified/
  3. ^ http://www.datacenterknowledge.com/archives/2014/04/17/performance-hub-equinix-targets-enterprise/
  4. ^ http://www.prnewswire.com/news-releases/equinix-reports-fourth-quarter-and-year-end-2014-results-300038767.html
  5. ^ http://www.datacenterknowledge.com/archives/2014/12/03/colocation-data-center-market-thrives-with-help-from-cloud/
  6. ^ http://www.equinix.com/company/about-equinix/vision-and-history/
  7. ^ https://trademarks.justia.com/865/07/where-opportunity-86507765.html
  8. ^ a b “Interview with Peter Van Camp.” The Wall Street Transcript. (2/13/2006)
  9. ^ http://www.datacenterknowledge.com/archives/2013/02/26/video-jay-adelson-on-the-early-days-of-equinix/
  10. ^ https://blog.equinix.com/2013/09/equinix-co-founder-jay-adelson-explains-how-equinix-got-its-name/
  11. ^ http://www.datacenterdynamics.com/design-strategy/equinix-partners-with-indonesian-firm-for-jakarta-data-center/70057.fullarticle
  12. ^ http://finance.yahoo.com/news/equinix-completes-acquisition-alog-integrates-203800617.html
  13. ^ http://www.equinix.com/ibx-openings/
  14. ^ http://www.datacenterknowledge.com/archives/2015/03/04/equinix-data-center-footprint-to-grow-in-five-global-markets/
  15. ^ http://www.equinix.com/company/news-and-events/press-releases/equinix-accelerates-interconnected-era-with-global-launch-of-five-new-data-centers/
  16. ^ http://www.fool.com/investing/general/2015/04/29/equinix-inc-celebrates-first-quarter-as-reit-with.aspx
  17. ^ http://www.zdnet.com/article/equinix-acquires-nimbo-to-bolster-professional-services/
  18. ^ http://www.reuters.com/article/2015/05/29/us-telecity-m-a-equinix-idUSKBN0OE0GS20150529, Equinix to buy TelecityGroup for $3.6 billion, Interxion deal ended, Reuters, 29 May 2015
  19. ^ http://www.thestreet.com/video/13069399/equinix-ceo-sees-further-consolidation-in-the-telecommunications-space.html
  20. ^ Equinix company website: http://www.equinix.com/industries/interconnection-network/
  21. ^ [1] Equinix Internet Exchange Data Sheet Retrieved 2 July 2015
  22. ^ http://www.datacenterknowledge.com/archives/2011/10/24/equinix-marketplace-seeks-to-connect-customers/
  23. ^ Equinix#cite note-stevesmithclouds-7
  24. ^ http://www.globalservices.bt.com/us/en/news/business_trust_in_data_security_in_cloud_at_all_time_low
  25. ^ http://www.datacenterknowledge.com/archives/2014/11/05/equinix-google-team-up-in-pursuit-of-enterprise-cloud-dollars/
  26. ^ http://www.nytimes.com/glogin?URI=http%3A%2F%2Fbits.blogs.nytimes.com%2F2014%2F04%2F30%2Fcloud-complexity-simplified%2F%3F_php%3Dtrue%26_type%3Dblogs%26_r%3D1
  27. ^ http://www.zacks.com/stock/news/172401/is-equinix-eqix-likely-to-disappoint-q1-earnings-estimates
  28. ^ http://investor.equinix.com/mobile.view?c=122662&v=203&d=1&id=2026555
  29. ^ http://www.equinix.com/company/news-and-events/press-releases/chinanetcenter-enters-us-marketplace-via-platform-equinix/
  30. ^ Winterford, Brett (16 August 2011). "Equinix builds cloud ecosystem in Sydney". 

External links[edit]