Equinix' New Performance Hub
Global data center service provider Equinix Inc. (EQIX) recently announced a new solution called Equinix Performance Hub that bridges the gap between network, data center and cloud infrastructure. It has the potential to improve network performance and enhance user experience.
The Performance Hub is an extension of the current network that enables Equinix customers to gauge the performance of application based platforms from secure International Business Exchange (:IBX) data centers. Moreover, this new hub will help users to connect directly to the network and provide greater visibility required for a secured network.
Additionally, this solution will enhance connectivity, thereby enabling mission-critical operation. The Equinix Performance Hub will provide better security and mitigate risk, which will enable Equinix to meet the growing demand for data center services globally.
We believe that this new solution will improve user satisfaction and help Equinix expand its customer base and market share going forward.
It is noteworthy that enterprises such as Chevron, eBay Inc. (EBAY), and NVIDIA Corp. (NVDA) have already selected the solution in Equinix data centers globally. The Equinix Performance Hub is also available in Equinix's North American data centers. This new solution will be available worldwide in the second half of the year.
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.
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. Moreover, Equinix is also expected to gain from its recent alliances and its proposed conversion to Real Estate Investment Trust (:REIT).
On the other hand, the company's highly leveraged balance sheet and competitive threats from the likes of AT&T Inc. (T) remain concerns.
Currently, Equinix carries a Zacks Rank #3 (Hold).
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