For Equinix, Interconnect Outpaces Colo

Equinix racked up its 66th consecutive quarter of revenue growth, and saw its interconnect business grow significantly faster than colo.

Mitch Wagner, Executive Editor, Light Reading

August 1, 2019

2 Min Read
For Equinix, Interconnect Outpaces Colo

Equinix saw significantly more growth in its interconnect business than in colocation as the service provider racked up its 66th consecutive quarter of revenue growth.

Interconnect revenues outpaced colocation by 13% for the quarter ending June 30, according to financial results reported Wednesday. But colocation is still the mainstay of Equinix's revenues -- $1 billion for colocation, versus $219 million for interconnect.

Overall Equinix revenues for the quarter were $1.385 billion, up 10% year-over-year. Adjusted EBITDA was up 12% year-over-year.

Equinix generated over 4,000 deals in the quarter, mostly small- and midsized multi-metro deals -- connections between two or more cities, executives said on an earnings call Wednesday. Customers deployed across all three regions -- Americas, EMEA and APAC -- increased 61%. And multi-region revenues, across two or three of those regions, grew 73%.

Figure 1:

Highlights of the quarter, according to executives on the call, included signing a joint venture valued at more than $1 billion with GIC -- Singapore's sovereign wealth fund -- to run European data centers targeting a small but lucrative number of hyperscale companies as customers, including Amazon and Microsoft.

Additionally, Equinix launched Network Edge services using Network Functions Virtualization (NFV) to allow partner carriers to deploy virtual network functions (VNFs) at Equinix facilities, including routers, firewalls and load balancers from such partners as Cisco, Juniper and Palo Alto Networks.

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About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

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