Data Center & Storage Solutions

Equinix captures Telecity to become host with the most

US datacentre hosting Equinix has agreed a $3.6bn deal to buy its rival Telecity in a move that enhances its grip in the contest for who holds the keys to the enterprise computing and cloud engine room.

Equinix consolidates its position as the leader in the sector where firms provide the datacentre facilities, expertise and connectivity for companies seeking to access IT services remotely and based on utility pricing. To the man on the street this is an invisible business but then so are ERP, identity access management and many other vast markets.

The Equinix-Telecity handshake leaves another company, InterXion, in a ticklish position as Telecity had agreed to buy InterXion before Equinix stepped in at the last minute to steal Telecity.

Who are these companies? Effectively they know how to manage and run datacentres, leasing out compute, storage and bandwidth to enterprises that want to get rid of a chore that does little or nothing for their competitive differentiation. They also help cloud service providers and managed service providers increase their reach and performance with local points of presence. And as internet and computing traffic continues to multiply, and as security threats and administrative expertise become more challenging issues for companies to address, the space is very hot indeed.

This deal makes Equinix the undisputed 800-pound gorilla but it might yet be trumped by companies in adjacent markets like telcos, cloud service providers or even media giants. Rupert Murdoch’s BskyB broadcast operation bought Easynet in 2005 before selling it on in 2010 and the market has become more attractive in the intervening years.


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Martin Veitch

Martin Veitch is Contributing Editor for IDG Connect

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