Wall Street Transcript Interview with Todd C. Weller, Managing Director, at Stifel, Nicolaus & Co., Inc.: Solid Secular Growth in Network-Neutral Colocation Market
67 WALL STREET, New York - February 11, 2013 - The Wall Street Transcript has just published its Data Hosting Centers and Data Storage 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, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Data Hosting Centers - Flash Memory - Cloud Computing Secular Trends - Internet Infrastructure Build - Big Data, PCIe Storage, Cloud Computing and the Virtual Desktop - Data Center REITs - Colocation, Managed Hosting and Cloud Computing - Data Center Expansion -
Companies include: Digital Realty Trust Inc. (DLR), DuPont Fabros Technology, Inc. (DFT), Cortex Pharmaceuticals Inc. (COR), Equinix Inc. (EQIX), Rackspace Hosting, Inc (RAX), Salesforce.com (CRM), Cincinnati Bell Inc. (CBB) and many more.
In the following excerpt from the Data Hosting Centers and Data Storage Report, an expert analyst discusses the outlook for the sector for investors:
TWST: Are there any particular areas you feel are especially promising going forward?
Mr. Weller: When you look at data centers, broadly speaking we think it's a good space. If you think around a lot of the big trends, think about a lot of our behavior - the use of iPads, iPhones - we're doing more. The applications and the data, the video, all that stuff we're accessing has to come from somewhere, right? It's coming from data centers.
If you think of cloud computing, what is "cloud"? "Cloud" is a general term, but cloud computing could mean infrastructure as a service; it could mean storage as a service; it could mean software as a service, like Salesforce.com (CRM). All those applications, all that data, is living in data centers, so we think there's a favorable backdrop for the data center industry in general.
I think when you look within the segments, our favorite segment is the network-neutral colocation space, where Equinix (EQIX) and Interxion (INXN) play, and I think it's increasingly being viewed by investors as being more attractive, because there are higher barriers to entry and, I think, therefore more sustainable returns.
Interxion, for example, is our top pick. It was for much of 2012, and remains so heading into 2013. I'd tell you, it's hard when you look at the segments and ask, wholesale versus network-neutral colocation versus managed/cloud hosting; which one of those is so much better than the others? They're different, and so we don't really force rank those, because it's hard today.
There are some customers out there that are comfortable and want to outsource their entire IT, from the server to the data center, and there are some customers that are just into outsourcing the data center component...
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.
