Equinix Inc. (NASDAQ:EQIX) is planning to expand the accessibility of Equinix Cloud Exchange in Europe.
Expansion goals of the company
Expansion has been an important goal of the company. Its expansion in Europe will include setting up three markets including Milan, Dublin and Stockholm. This will allow the company to keep up with the rapid growing demand of security and data services throughout the world.
The expansion will also enable the company to provide its customers with the benefits of its cloud infrastructure which includes a secure connection, infrastructure reliability as well as the outstanding scalability.
Benefits expected from the expansion process
Equinix Cloud Exchange allows for a seamless, on demand as well as direct access to multiple clouds through multiple global networks. These types of virtual circuit connections enable client to make use of their cloud with dedicated, low latency connections.
The expansion process will assist the Equinox Clients to determine the performance of the application based platforms through secure International Business Exchange data centers (IBX). This transaction will be of great help to the company in increasing its customer base and he market share.
Expansion expectations for the current year
Equinix is very optimistic on the increasing demand for data centers. Due to this reason, it has embarked on expanding its IBX data centers throughout the world and becoming a popular slogan among the tech firms in search of data management. The company expects to increase the total addressable market for retail data centers at a CAGR of 8% by 2017 from 2013. It hopes to reach a target of $24 billion. The projected growth rate for revenue based on the CAGR is at 10% in the year 2017.
Effects of the expansion on stock performance
The company believes that through expanding the data centers, it will be in more advanced position to take advantage of the opportunity and capitalize on it. The expansion process will also assist the company to strengthen further its global stand and attract more revenues.
The shares of the company are listed on the NASDAQ stocks platform and they have been trading higher on year to date basis.