(EQIX) Equinix Integrates ACTIV’s Solution
Equinix, Inc. (EQIX) declared that it will expand ACTIV Financial’s (ACTIV) operations to Equinix’s Singapore International Business Exchange (IBX) data center as part of its global expansion to provide customers with the most direct and low latency access to its high-volume market data services. By operating together with Equinix Singapore data center, ACTIV will also be in close proximity to the aggregation service providers and financial market participants already operating within the center, which includes the major trading platforms and exchanges in Asia.
The financial service provider is currently using the Chicago, New York, London and Frankfurt data centers in order to optimize the performance of its data solutions in the U.S. and Europe. It is expected that ACTIV’s installation in the Singapore data center will strengthen its distribution infrastructure across Asia and make the delivery process faster.
Since the volume of automated and algorithmic trading for ACTIV’s clients have increased over the years and new liquidity opportunities in the Asia Pacific have emerged, ACTIV clients will now have additional direct feed solutions in order to support high frequency trading requirements in the region. We believe the joint collaboration of the two companies will provide that solution.
So the process of expansion of data center facilities continues for Equinix. In October 2009, Equinix unveiled its plan to set up a 4,500 square meter or 48,400 square foot data center in Geneva, Switzerland. This second data center in Geneva falls within the company’s $1.4 billion expansion plan to be executed within the 2007 – 2010 timeframe. In accordance with this plan, the company expects to expand its operations in 15 out of 18 markets in which it operates. We are positive about the company’s growing data centers across geographies, since this will improve growth under the recurring revenue model.
Equinix is well-positioned in the market. The company has delivered encouraging third quarter numbers and provided decent 2009 guidance. The company is continuously increasing its client base and acquiring companies that could enhance its revenue potential and expand its geographic reach. Although we are optimistic about the prospects of the company Incorporatedreased competition, industry consolidation, high debt balance and a long sales cycle are reasons for concern.
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