Public Cloud Offerings by Amazon (AMZN) and Rackspace (RAX) Driving Demand for Data Center Services: An Industry Expert Discusses Themes in the Internet Services Sector

Wall Street Transcript

67 WALL STREET, New York - May 15, 2013 - The Wall Street Transcript has just published its Internet Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Increased Mobile Content Traffic - Chinese Online Monetization Trends - Internet Infrastructure and Services Consolidation - Social Networking Economics -

Companies include: Amazon.com Inc. (AMZN), Rackspace Hosting, Inc (RAX), Cortex Pharmaceuticals Inc. (COR), Equinix Inc. (EQIX), Digital Realty Trust Inc. (DLR), Microsoft Corporation (MSFT), International Business Machine (IBM), VMware, Inc. (VMW), DuPont Fabros Technology, Inc. (DFT), Oracle Corp. (ORCL), Tibco Software Inc. (TIBX), F5 Networks Inc. (FFIV) and many more.

In the following excerpt from the Internet Services Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Another big theme is the intersection of Big Data and cloud computing. What impact do you expect that to have on the sector?

Mr. Weller: Big Data, I think, just points to the fact that the amount of information and data that companies are dealing with and obtaining and trying to analyze just continues to grow at exponential rates, and that's driving a lot of demand for storage and for IT in general. And so again, we think about kind of data centers and hosting, and hosting can be dedicated hosting, or it could be public cloud services offered by the likes of Amazon (AMZN) Web Services or Rackspace (RAX) that's driving more demand for data center services and hosting, including cloud computing services.

TWST: As companies have started to report Q1 results, what have been other key takeaways? Have there been any notable surprises?

Mr. Weller: Yes, I think it's fairly early as far March quarter results. From a data center perspective, we had CoreSite (COR) report yesterday, and they reported solid results, which we think demonstrates that demand continues to be positive. Then last night after the close, Equinix (EQIX), an industry bellwether, also reported, and their quarterly results and their 2Q outlook were a little bit disappointing on the surface, but a lot of that had to deal with foreign currency headwinds and some one-time customer churn they experienced. But kind of underlying that was solid bookings and pipelines and with continued healthy bookings in the Americas as well as Europe, and so we think that's a positive sign for the sector.

And the other thing I would say is we get a lot of questions about cloud. Obviously, there's been a lot of controversy recently around whether cloud is a positive or a negative driver for data center companies, and we think it is a positive driver, as we've...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Rates

View Comments (0)

Recommended for You