Feeds

Equinix eats up Switch & Data Facilities

Colo and hosting operator consolidation

HP ProLiant Gen8: Integrated lifecycle automation

Equinix, a large international hosting data centre operator, is buying Switch & Data Centre Facilities, a smaller north American operator, for $689m.

Equinix has 45 data centres, totalling around five million square feet, in Europe, Asia and the USA. Switch & Data Facilities has 34 data centres spread across the USA and Canada. Its total floor space amounts to just over one million square feet and, in 2008, its revenue was $171.5m whilst Equinix earned $704.7m.

Equinix connects network providers. It says it has every major US and international network as a customer and acts like an airport hub connecting businesses to the routes and/or carriers that lead to the desired destination. Customers include Google, Sony, Yahoo, Wells Fargo, J P Morgan, Amazon, HP and IBM.

The main reason the acquisition is being done is that businesses are facing increasing online data transmission needs, and need to distribute more information to edge locations in their networks so that customers and partners can get that information quickly without having to wait for a long-distance transfer.

The deal gets Equinix new data centre presence in places such as Atlanta, Denver, Miami, Seattle and Toronto. Its customers get broader access to local markets for their network edge deployments, and Switch and Data customers get a more comprehensive offering for their global data centre needs. The acquisition also positions Equinix to meet the needs, it says, of key network and cloud providers.

The data centre co-location and hosting market is growing strongly. Gartner figures show a 18.8 per cent CAGR for the 2008 to 2012 period with the 2009 market sized at $16.7bn and the 2012 market at $28.9bn.

Equinix says there are synergies that can be exploited and, where the two operators' data centre presence overlaps, the additional capacity can be sold to new customers. The deal is an example of the point that consolidation into bigger units is happening right across the networking and IT provision space. It may well be followed by others.

Overall, Equinix is buying SDF for $137.8m cash with the rest of the purchase paid for in Equinix stock. The deal should close in the first quarter of next year. ®

Reducing security risks from open source software

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.