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Equinix (EQIX) to Offer Colocation Services for VMware Cloud

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Recently, Equinix, Inc. EQIX announced that it has expanded its collaboration with VMware, in a bid to develop solutions that will help firms accelerate hybrid cloud transformations based on VMware Cloud on Dell EMC within the company’s International Business Exchange (IBX) data centers.

This move will accelerate customers’ digital transformation in public cloud and edge deployments by simplifying complex hybrid multi-cloud deployments. In fact, the companies have been jointly working since 2013 to enhance hybrid cloud infrastructures, and cater to the growing volume and complexity of application workloads and data.

Notably, VMware Cloud on Dell EMC offers public cloud simplicity and agility, along with the security, control and performance of on-premises infrastructure. This, when combined with Equinix’s ECX Fabric — the interconnection service on Platform Equinix — will enable enterprises to leverage on private and secure multi-cloud connectivity. Further, it will accelerate deployment of hybrid cloud infrastructures.  

Moreover, in 2018, the companies joined forces, offering private connectivity to VMware Cloud on AWS through AWS Direct Connect at Equinix global IBX data centers. Hence, with the help of ECX Fabric, the partnership enabled organizations to reach VMware Cloud on AWS inside Equinix’s IBX data centers, although VMware Cloud on AWS was not local to the organization’s business location.

Importantly, interconnection between enterprises, and cloud and IT providers is projected to soar 98% annually through 2021. This will support companies when they roll out new digital services and transferring existing workloads to third-party cloud platforms.

Hence, amid rising complexities of digital transformation and higher demand for local services, Equinix’s efforts to provide efficient and scalable data-center hybrid IT infrastructures is a strategic fit.

Shares of this Zacks Rank #3 (Hold) company have jumped 32% over the past six months, outperforming the real estate market's growth of 5.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Furthermore, the tailwinds for data-center real estate investment trusts (REITs) will likely remain in place amid growth in cloud computing, Internet of Things and big data, as well as increasing number of companies opting for third-party IT infrastructure. Also, the estimated growth rates for artificial intelligence, autonomous vehicle and virtual/augmented reality markets will remain robust over the next five-eight years. These factors are anticipated to provide substantial growth impetus to data-center REITs, including Equinix, Digital Realty Trust, Inc. DLR, CyrusOne Inc. CONE and CoreSite Realty Corporation COR.

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