67 WALL STREET, New York - September 16, 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 and Equity Analysts. 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 - Data Center REITs - Colocation, Managed Hosting and Cloud Computing - International Enterprise and Consumer Demand
Companies include: tw telecom inc. (TWTC), Cogent Communications Group In (CCOI), Windstream Corporation (WIN), EarthLink Inc. (ELNK), Cbeyond, Inc. (CBEY), Level 3 Communications Inc. (LVLT), Equinix Inc. (EQIX), Rackspace Hosting, Inc (RAX), 8x8 Inc. (EGHT), ShoreTel, Inc. (SHOR), Cortex Pharmaceuticals Inc. (COR), Digital Realty Trust Inc. (DLR), DuPont Fabros Technology, Inc. (DFT) 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: Does anything from the most recent quarterly earnings reports and calls stick out for you?
Mr. McCarver: As it relates to my network side, it was a tough quarter. We saw that enterprise services and enterprise spending is still a little tighter than it has been in past years.
On the data center side, there were a couple of trends. I have already mentioned the hybrid cloud. I think you're seeing that really start to take off, and probably in just the first or second quarters providers really delineated that and said, "we're seeing growth here, and it's our customers purchasing hybrid cloud solutions or at least starting to take a hard look; it's within the sales cycle, they are looking at what are the hybrid possibilities and preparing to make a decision." So that was relatively new.
On the colocation side in the U.S., as I alluded to before, their supply is starting to meet demand, and so it is becoming a more mature market. If you look at companies like Equinix and growth in the U.S., they're still growing, but at a reduced rate. It's not high growth like it was four or five years ago.
What a lot of these providers are seeing is that there is demand outside the U.S., in Europe and even more so today in the Asia Pacific region, and it's demand by domestic companies, so you're seeing providers launch solutions and capacity outside the U.S. for U.S. companies. And so the capex spend is still there, it's not changed dramatically, it's just being spent elsewhere. I think that's an interesting trend that, given the lagging development of these outsourced services in some markets outside the U.S., could be a very nice growth driver over the course of the next two, three years.
TWST: On Equinix and Rackspace, what are your ratings and recommendations right now?
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.