Direct Access To Oracle Cloud In Asia Pacific Via Sydney IBX (revised)
Zacks Investment Research | Jul 11, 2017 11:39PM ET
The global data center operator, Equinix Inc. (NASDAQ:EQIX) , recently announced that it will now sell direct, private access to Oracle’s (NYSE:ORCL) Oracle Cloud in its Sydney, Australia, International Business Exchange (IBX) data centre, with immediate effect. The access will be available for Oracle Infrastructure as a Service (IaaS), as well as Platform as a Service (PaaS) through Oracle Cloud Network Service – FastConnect and the Equinix Cloud Exchange.
We believe that the recent development will help Oracle in expanding its footprint across the Asia Pacific, particularly in Australia, and address rising demand for cloud services in the region. The increase in demand is also evident from the findings of an independent research firm, International Data Corporation (IDC).
Per IDC, about 67% of the total surveyed Australian enterprises have been using cloud services for more than one or two applications or workloads. Another research firm – Gartner – estimates the Public Cloud Services market to grow 18% in 2017 and reach $246.8 billion. Of this, IaaS is projected to make the highest growth of 36.8%.
The recent development is in line with the two companies’ partnership agreement entered in May this year, under which Equinix has been allowed to provide high-performance direct network access to Oracle Cloud globally. With the latest addition of Sydney, Equinix now provide Oracle Cloud in five global markets. Notably, currently the Equinix Cloud Exchange is available in 21 markets globally.
With the collaboration, Equinix will help Oracle customers get the benefit of the former’s 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.
The partnership will enable Oracle to expand the reach of its cloud platform and provide private connectivity to corporate customers globally in an uncongested and cost-effective manner.
With this agreement, Oracle becomes the latest member of Equinix’s Cloud Exchange, after Amazon (NASDAQ:AMZN) , Microsoft (NASDAQ:MSFT) Alphabet’s Google (NASDAQ:GOOGL) Cloud and IBM (NYSE:IBM) Cloud. The company’s member list also includes Salesforce (NYSE:CRM) , which is Oracle’s biggest competitor in the customer relation management market.
We believe that the recent deal is beneficial for both the companies. By using Equinix’s Cloud Exchange, Oracle will be able to expand its footprint globally and address rising demand for cloud services.
Get The News You Want
On the other hand, an increase in public cloud services would automatically boost data center demand. This will ultimately benefit Equinix by bringing in more contracts, thereby bolstering the company’s revenues.
Shares of Equinix have been steadily treading higher on a year-to-date basis. The stock returned approximately 17.1% compared with the Zacks REIT-Equity Trust industry’s decline of 9.1%.
Currently, Equinix carries a Zacks Rank #3 (Hold). You can see .
NOTE: This article has been reissued to correct an error. The original version, posted July 7, 2017, should no longer be relied upon.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.