Equinix Inc. (NASDAQ:EQIX) and Amazon’s (NASDAQ:AMZN) cloud services arm — Amazon Web Services (AWS) — strengthened the companies’ years long partnership yesterday, with the latter choosing the former’s four additional IBX data centers for its AWS Direct Connect services.
Per the agreement, Equinix will provide high-performance direct network access to AWS Direct Connect services via Equinix data centers in Helsinki, Madrid, Manchester and Toronto. With this, AWS services are now available at 21 Equinix metro IBX data centers.
With this extended collaboration, Equinix will help AWS customers benefit from its cloud services, including secure connection, outstanding scalability and infrastructure dependability.
Cloud Exchange provides seamless, on-demand and direct access to multiple clouds, across multiple global networks. These virtual circuit connections enable customers to use the cloud of their choice with dedicated, low-latency connections.
We believe the recent deal is beneficial for both companies. The partnership will enable AWS to expand the reach of its cloud platform, and provide private connectivity to corporate customers globally in an uncongested and cost-effective manner. Moreover, Equinix helps manage multiple connections through a single port, in turn making it easier for customers to access the AWS cloud platform.
In addition to the above, although AWS is ruling the cloud computing market, it needs to continuously extend the company’s global reach as other players, including Alphabet (NASDAQ:GOOGL) , Microsoft (NASDAQ:MSFT) and Oracle (NYSE:ORCL), are aggressively trying to build a position in this fast-growing segment.
On the other hand, as more and more cloud service providers are picking Equinix’s colocation and interconnection services, this will drive the company’s revenues over the long run. Its list of customers includes Alphabet, Microsoft, Oracle, Salesforce and IBM (NYSE:IBM).
Equinix’s share price movement has been quite favorable. In the last one year, its shares gained 38.2% against a loss of 12% recorded by the industry.
Currently, Equinix carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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