Feeds

Equinix eats up Switch & Data Facilities

Colo and hosting operator consolidation

Top three mobile application threats

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. ®

High performance access to file storage

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.