- Explosive growth in mobile, content delivery, video streaming, tele-presence, social media, and cloud-based data traffic offers tremendous revenue opportunities for high-margin corporate and retail services such as Ethernet and MPLS. To remain competitive, network operators are expanding their infrastructures to meet demand for these new services—and are turning to “retail data centers” that not only offer all the network-to-network connectivity of a telehouse, but also act as aggregation points for concentrations of customers in network-centric industries.
- Roughly 75 percent of all network traffic emanating from Latin America is coming into the United States via Miami. Globally, MI3 has the sixth highest Internet capacity and is a key hub location for domestic and international traffic routes. As a result, Equinix and its Brazilian subsidiary ALOG are perfectly positioned to serve high-bandwidth events, such as the upcoming 2014 FIFA World Cup and 2016 Summer Olympics in Brazil.
- According to a 2013 Submarine Telecoms Forum report, growth in activated submarine capacity has been extremely high, with a compound annual growth rate of 54 percent over the last five years. Equinix is laying the foundation for cable operators like GlobeNet to establish an express highway between the United States and Brazil, while leveraging Platform Equinix™ and its ecosystem of key supply chain customers and partners.
- The North America-South America capacity market is heavily dependent on three privately owned geographic ring networks, one of which is GlobeNet. With numerous telecommunications carrier facilities, fiber loops, international cable landings and multiple power grids, MI3 is an ideal location for GlobeNet to meet the connectivity demands of wholesale and network service providers and other Internet-related businesses looking to expand their business.
- GlobeNet owns and operates over 22,500 kilometers of subsea cable network specifically engineered for the shortest, lowest latency routes. Built upon advanced Dense Wave Division Multiplexing (DWDM) technology, GlobeNet’s carrier class network is leveraged by wholesale providers and carriers around the World.
- Equinix is seeing strong demand from customers looking to leverage MI3 for fast access to Latin America. MI3 offers a number of benefits to customers, including direct connectivity to the leading Latin American network operators for reduced latency, and close proximity for serving Latin American markets while maintaining infrastructure within the US. Customers that are deploying at MI3 include, Allied Fiber, Cogent Communications, Fiberlight, Inteliquent, Neutrona Networks, Lightower Fiber Networks and tw telecom.
- Erick Contag, Chief Operating Officer, GlobeNet:
- Jim Poole, general manager, Global Networks & Mobility at Equinix:
Ethernet Technology Summit, April 2-4, 2013 | Santa Clara Marriot, Santa Clara, CA
40/100 GbE | convergence | cloud computing | virtualization | big data - they’re all at ETS, plus two full days of free SDN seminars
Learn from the experts: Intel | Broadcom | IBM | HP | Cisco | Brocade | IDC | Dell | Equinix | Synopsys | Cadence | Tektronix | Agilent | Huawei…and many others...
Don’t miss this opportunity to participate in this power-packed three-day event! Take advantage of this opportunity to network with members of the Ethernet ecosystem. Here’s how you can participate:
- 2013 Call for Presentations »
- Sponsor and exhibitor packages »
- Exhibitor/Sponsor Benefits »
- Participating sponsors and exhibitors »
- Exhibitor Registration »
- Speaker Information »
Three days packed full of seminars, forums, keynotes, and sessions:
- Two full-day seminars of Software-Defined Networking (SDN)/OpenFlow
- Full-day forums on 40/100/400 GbE and convergence on Ethernet
- Half-day forums on data centers, virtualization, and cloud computing
- Chat with the Experts
More information: http://ethernetsummit.com
Equinix (EQIX) Q4 2011 Earnings Call February 15, 2012 5:30 PM ET - Transcripts
Good afternoon, and welcome to Equinix Conference Call. [Operator Instructions] Also today's conference is being recorded. If anyone has any objections, please disconnect at this time. I'd like to turn the call over to Katrina Rymill, VP of IR. You may begin.
Good afternoon, and welcome to today's conference call. Before we get started, I would like to remind everyone that some of the statements that we'll be making today are forward-looking in nature and involve risks and uncertainties. Actual results may vary significantly from those statements and may be affected by the risks we identified in today's press release and those identified in our filings with the SEC, including our most recent Form 10-K filed on February 25, 2011, and Form 10-Q filed on October 28, 2011. Equinix assumes no obligation and does not intend to update or comment on forward-looking statements made on this call. In addition, in light of Regulation Fair Disclosure, it is Equinix's policy not to comment on its financial guidance during the call, unless it is done through an exclusive public disclosure.
In addition, we will provide non-GAAP measures on today's conference call. We provide a reconciliation of those measures to the most directly comparable GAAP measures and a list of the reasons why the company uses these measures in today's press release on the Equinix Investor Relations page at www.equinix.com. We would also like to remind you that we post important information about Equinix on the Investor Relations page of our website. We encourage you to check our website regularly for the most current available information.
With us today are Steve Smith, Equinix's CEO and President; Keith Taylor, Chief Financial Officer; Jarrett Appleby, Chief Marketing Officer; and Charles Meyers, President of the Americas. Following our prepared remarks, we will be taking questions from sell-side analysts. In the interest of wrapping this call within 1 hour, we'd like to ask these analysts to limit any follow-on questions to one. At this time, I'd like to turn the call over to Steve.
Click "Read More" to continue...
Carrier Ethernet as a transport service is gaining traction across businesses of all sizes due to the benefits it offers: scalability, reliability and cost efficient bandwidth. Ethernet has also emerged as an attractive service option for customers migrating from the more traditional ATM, Frame Relay, SONET and Private Line services. In fact, every conceivable vertical of customers represents a potential market opportunity.
Given the expanding market demand, service providers are rushing to expand their footprints to maximize the revenue opportunity. They are faced with two expansion options: 1) building new networks (greenfield deployments), or 2) buying from other service providers (partnerships or organic growth). Ethernet exchanges facilitate the latter option with a solution grounded on cost-efficiency and rapid implementation. As carriers interconnect their networks at these exchanges, their service footprint is automatically expanded to include the reach of the other carriers subscribing to the same exchange. Consequently, the carrier can offer Ethernet services to a more distributed range of connecting locations.
For this reason, a number of Ethernet service providers have chosen to connect to one of the exchanges that have emerged across the major metro markets in the United States. Equinix, Tinet (a Neutral Tandem company), CENX and Telx are the four exchange operators competing in this market. Ethernet exchanges were introduced to eliminate the tedious process of drawing bilateral agreements with every other carrier to which CSPs intend to connect. While the benefits of connecting to an exchange appeal greatly to service providers (thus resulting in the exchange operators signing up a long list of customers to their exchanges), 18 months since the opening of the first exchange, the actual traffic being exchanged at these exchanges is minimal.
Based on interviews with Ethernet service providers and exchange operators, Frost & Sullivan has identified one key reason for the underperformance of the exchange services: exchange operators may have over-promised and under-delivered on the services. Nonetheless, we remain convinced of the viability of the concept, and we expect that technology, services, and carrier expectations will continue to evolve.
In our 2010 insight on the Ethernet exchanges, Frost & Sullivan presented an in-depth analysis of the Ethernet exchanges definition, provider business models, key business and technical challenges that the exchanges could potentially address, and the competitive environment in the Ethernet exchanges services market.2 In this installment of our analysis on the Ethernet exchanges, Frost & Sullivan takes a close look at the following:
- Current challenges inhibiting faster adoption of exchange services
- Evolving business models of Ethernet exchanges
- Impact of Ethernet exchanges on wholesale and retail Ethernet revenues
This report is part of Frost & Sullivan's Business Communication Services Subscription, which also includes research in the following markets: Wholesale & Business/Retail Transport Services that include Private Line, SONET, Ethernet, MPLS and Wavelength Services Market, Mobile Backhaul Services, Fiber-based Video Transport Services, Dedicated Internet Access Services, Managed/Hosted Services and others. All research included in subscriptions provide detailed market opportunities (revenue, ports and pricing forecasts) and industry trends that have been evaluated following extensive interviews with market participants.
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.
Interconnections have always been a key focus for data centers located in areas with high concentrations of network service providers. Some of these data center providers are now investing in specialized exchanges to support Carrier Ethernet services.
The Metro Ethernet Forum’s formal definition of an Ethernet Exchange, a form of an External Network-Network Interface (ENNI), is “an interconnect point among service providers where Carrier Ethernet Services are exchanged.” From an end user’s point of view, you want your service provider to supply this service so you can have a direct Ethernet connection from end-to-end.
End Users See Benefits of Ethernet
Today, most enterprises are still encapsulating their native Ethernet data into TDM/SONET/SDH then de-encapsulating it at the other end. However, more and more, end users are seeing the benefits of Ethernet Services and perhaps eventually, the entire public network may be running native Ethernet.