Blog

October 1, 2013
EQUINIX MARKET COMMENTARY – SHIFTING CURRENTS IN WHOLESALE & CLOUD

Equinix has noted that enterprise customers have been slower to adopt cloud-computing solutions than management had expected. EQIX is focused on enterprise uptake of hybrid cloud as the biggest opportunity in this area. Sales cycles are described as being more leisurely than would have been hoped for.
 
Interestingly EQIX describes the wholesale business as being increasingly decoupled from what it describes as its core interconnection-focused offering. EQIX is pulling out of a small, but growing, percentage of large deals where neither the customer nor the customer’s presence in a market is considered strategic and where pricing has been pushed below EQIX’s bottom-end parameters. Large deals in core markets (where there is an important connectivity angle) are still being fiercely contested.
 
To combat a decline in cabinet count in Germany and the US, EQIX has recast and improved the payments to VARs and real estate brokers for client referrals. EQIX intends to maintain selectivity and pricing discipline in this channel. These comments support the wisdom of a telegeography-driven strategy.